Qualys (QLYS) 4 May 232023 Q1 Earnings call transcript

Thank you for standing by. Welcome to the Qualys First Quarter 2023 Investor Conference Call. At this time, all participants are in a listen-only mode. After the speakers' presentation, there will be a question-and-answer session. [Operator Instructions] Please be advised that today's conference is being recorded.

to conference like speakers to now Mr. today, would hand over the your I King. Blair ahead. go Please

Thank good Norma XXXX you, and earnings first to call. quarter Qualys’ afternoon and welcome

our our Joining to Mi results President CFO. and are Kim, me our CEO, discuss Sumedh today Joo and Thakar,

today these to operating get remarks from future differ our financial I or events Actual that started, statements results materially forward-looking we like to or include Before you that performance. may remind statements. would our will generally relate future

could with that differ Form no as or obligation new are including today Factors call forward-looking results cause materially these this based a update release result events. to latest of on Any are set to of press and today's on statements we and forth make as future information statements that XX-Q our the undertake in and XX-K. our we filings SEC, assumptions

non-GAAP reconciliation today's non-GAAP During GAAP will present we both and release. press earnings is A financial measures this measures. to GAAP included call, of in

remarks, of the available Relations Investor As a the on release, section are presentation and website. press investor our reminder, prepared

With call like turn to Sumedh. to that, over I’d the

Thanks to quarter our earnings Blair call. first welcome and

industry another to we pleased that growth of profitability. delivered announce revenue healthy and We’re leading quarter

cyber ensuring risk, met finding number priorities; address to quantifying against emphasize environments, fast past identifying their to with four and protection solutions and all CISOs A risk, of several adversaries. I’ve and prioritizing key the cost-effective over months continue adequate assets in

detections X.X reinforced Threat vulnerability in Unit XXXX Report Qualys’ TruRisk were anonymized The Research platform. importance our of analyzed having released these by our the in further findings priorities after by billion

the vulnerabilities the XXXX to patch research which far was in to of than those taken our days number findings teams average According less IT vulnerabilities. in time XX, is the of by amount report, to weaponize

to that they technologies for purely that and in the help message before get Legacy today clear. Organizations market and them available generating alerts secure more more patch vulnerabilities and are looking not organizations. is can weaponized detections help focus enough The on prioritized platforms exploited. are

Against a resolving prioritizing security the of security cyber prior their skills and assets to further transformation severe digital a findings accelerating exploitation. backdrop gap, present critical assistance them require organizations in in most and

to effectively to macro to and manage and need their executives. look for objectives the are in scrutiny, holistic, and approach navigate with recognizing CISOs and business Board they As align a budget their C-level current a risk cyber increased thereby, to risk-based quantify communicate position be the

innovation been to platform. than powerful of our terms XX a built processing at advance innovation In platform which paradigm, to doing trillion capabilities integrated across on we data so, real-time has for security these our years, initiatives. natively a leverages drive continuous In points today we’ve Qualys mission industry data new more believe

programs Cloud Qualys Cloud by remediating preventing detecting the technologies, over only not enhancing our proactively in detection by risk traditional also security prioritizing, and alone. vulnerabilities only Unlike XX worldwide and is patches XXXX Platform deployed million misconfigurations, Agents with but

outcomes Threat infrastructure threat our alongside the of view solution real-time our prevention the continuous, with an leveraging the capabilities, Database lens a of threat an preemptive essential further of combine flexing of to companies. comprehensive And, organizations solutions. XX protecting ATT&CK Cloud by now management today’s security and to with platform MITRE intelligence deliver digital risk mitigation the power we’re to featuring integrated, of platform These uniquely through risk organization’s unified over a feeds, cybersecurity posture provide framework, natively a adversary quantifiable

risk into vulnerability integrated managementX, to which an vision stack consolidate has future cybersecurity our management take to analysts caused Consequently, pointed the to a security industry notice. recently evolves platform. strategic IDC of

are key Management VMDR and a market demand. TruRisk with Asset Patch single addressing along Management Management on with External CyberSecurity platform Our this Attack Surface to

application to software chain in next our Analysis environments. shift resulting innovation seismic using the risk In of taking level VMDR software in attacks. of digital development supply we’re software cloud importance, on-prem transformation Composition the power in Software a response, and and manage the additional is by surge open-source Of the to of extending

Platform, the this by With of teams the automatically of security cycle agent and speed. environment high the Qualys life detection same software extension and application deep-scan across can open-source virtual the remediation Qualys Cloud production images efficacy with identify leveraging for spanning entire

DevOps container advances deployment and existing in and Software continuous environments assessment integration run teams our development for Analysis at time. secure This software open-source Composition capability and to

VMDR and In addition Compliance agent-based solutions. into to Remediation this enhancement, our advancing our Assessment Policy capabilities Custom and we’re also

this vulnerability Organizations more the is environment. create software, to software Xrd With detections customers vulnerabilities for enabling software managing party own entire increasing. their own As Xst initiative, more their management and their custom we develop in expand custom need to software are from party across to

prioritized we’ve solutions remediation our continued cloud. public Alibaba’s to single expand asset And cloud to real-time, providers a finally, on coverage by for cloud and agent discovery bringing

Turning a business impacted to now tough start new scrutiny continued apply dates, bookings. layers Despite challenging organizations improved additional performance, motion, upsell to go-to-market remained period. to of and spending which our as project QX was delay

these customers. year, we expect of for remainder to conditions at with While this consolidation remains the key our a linger theme least

are for in conversations fortunate many leadership future engaged Given are foundation are and and a continuous us. transformation laying our thought a such firm to be many journey on with customers growth, long-term Those innovation, conversations. we

annualized in Qualys’ the is with XXX two was which in included Existing who platform, steady that and customers one wins in Global XX% of replace TruRisk both on its adoption for health comprehensive Qualys workloads. platform and management posture siloed platform manage ability care in quarter and enhance VMDR security security cloud invest on-prem QX bookings seven-figure chose unified a institutions consolidation to of VMDR, largest traditional financial our is tools with the VMDR A evidenced worldwide. the customers deployed of world’s with by key to leveraging risk environments by now continuing a to few providers

that customer. look power a the examples take immediate strategic Cloud the of the additional to customer provided let’s demonstrate translated and wins, some Platform wins value Qualys how into at these Beyond

customers transformations in we underway, large move and solution, standardize operations high are spectrum aspiring cybersecurity its customer detection-only helping a broad Trust HDR. by action Zero compliance security assessment management, custom and government beyond across a its a in with expanded agency management further remediation, First, HDR bookings use adding and X-figure to subscriptions policy annualized of VMDR their of context asset

are from a the debt, security mapping response with the is proactively their to also we offer selected technical enable security future-proof are example catching Qualys the channel vanities utilizes how in high-fidelity benefiting context This all we automate, market in and environments. reduced of available a full good and business and asset customer lightweight agent incident architecture prioritize capabilities today we aware both This making investments to because the across to platform and drive stack compliance opportunities. a single new visibility authorized FedRAMP that only

a on IT Another of Fortune the while services This security ticketing marquee significantly in part six the as multiple figure architecture their XXX. technologies. compared customer where to annualized deployment with management the was vendors to internal asset a natively automated solutions bookings from VMDR external with expanded environments with integrated enterprise comprehensive leading differentiators customer management all patch program point risk and security of customer transform the its two obviously single adopting patching criticality, and key initiative business The enhance and alternative QX while to risk win across replacing platform scoring asset company this ability platform. with in holistic true legacy

in go-to-market remediation our a a QX or leading to this from spending vision launching with as just our more management to Qualys customers validating long-term With confidence ecosystem key risk in again us, we we touching beginning grew ability detections. in was its gain solution not year leading anchored and our solutions, share. customers that growth point multiple this VMDR a more already further and with increasingly to quarter, confident pursue organizations expanded $XXX,XXX growing with bolstered timely continues partner is With our market in a partnership be our our XXX. that drive managed America. how ago and Growing consolidates to as XX% partner a need agenda. to In platform now This are pillar more service North MSSP platform in

and a VPN. for on touching This across automated standardizing mobile need solutions Qualys environments, operating devices the Linux Mac Windows, MSSP applications without third-party and

EASM In extended the We customers. are our fast in cyber addition, our relationship to illustrating for our fabric adaptive insurance assess field insurance solution. we their continuously leading intelligence External progress making is Attack for ingesting EASM now Management, a company which risk with Surface

model solution. extend introduced through their to we the customers The Furthering cloud organizations friction environments adaptive our customers our helping subscription and the have a quite have from VMDR by efforts for CSPM security to for transformation quarter. sales container stack, early we cloud feedback into forward current this encouraging, cycle in are model for is deployments received or in early looking adopt to accelerate and cloud consolidate and new the existing and CWPP their remove total customers we

view In before. times like this, stronger customer that best to continue summary, than companies emerge innovate, on during it's our and success the focus

artful of Looking a believe the positions fundamental motion focus we the success term, vision, on go-to-market risk Throughout and our cloud-native management of this profitability. of strategic well continue the future. competition balance with short balancing and the expanding customer proven us platform approach combination to frictionless beyond will to lever year, holistic and growth our for the we executing driving platform our

quarter full turn year With Mi call discuss Joo first quarter outlook our XXXX. and that, second I will the to for over and to the further results

afternoon. Thanks, good Sumedh, and

stated non-GAAP rates on Before note except otherwise. prior unless I figures growth period, are that, start, financial year revenues, the to are I’d comparisons based all like for to and

a Revenues revenues grew channel business, increase our quarter continuing was channel the with revenues geo, compared in XX% ago. million grew to $XXX.X with contribution, growth which Turning to of XX%. first XX%, to By up grew results, outpacing approximately year which international of XX% making direct, XX% XX% XX%. its in-line grew partners total US from to

from XXXX, last dollar expect slightly at roughly we a international upsell our last retention In down basis XX% to rate to and XXX% respectively. expansion from QX, line balance net with and the constant at on ahead but of mix customer Looking continued US dollar and flat we strength year. saw our currency quarter, remain XXX%, XX%, expectations in revenue with in

for $XX,XXX growth strong While improvement of room larger than pleased with there from with customers. smaller customers XX% spending are from us, we remains the revenue less

Patch of environment the terms that Qualys bookings, complex to bookings and highlights Cloud to success XX% XX% new of risk. LTM increasingly LTM threat this an remediate in and product and of new Platform combined attribute of CyberSecurity manage assess, In to QX. relevance Asset We Management contribution Management up the bookings made holistically

the in for primarily to year $XX.X quarter EBITDA by our Adjusted XX% to a a XX% margin increased of XX% XXXX representing first headcount in margin, was QX and sales driven Reflecting expenses the million, sustainable growth Operating $XX.X compared marketing and scalable including and investments, higher costs. business model, million, by a related ago.

in of approach During while investment prudent importance to XXXX, the of executing it's long-term optimizing we losing growth. opportunistic investments against take sight drive the our remainder to of our an believe not profitable prior plan

and back of margin. expenditures XXXX free EPS representing capital In $XX.X operations quarter flow XXX,XXX for XXXX XX% $X.X million, generated $X.XX, QX, was a on the for shares. the continued from cash we million Qualys, first and of the outstanding to first quarter invest to was repurchase including our of $XX.X cash million into we our

of As our end $XXX.X of share we in million the program. the repurchase quarter, had remaining

turn growth to guidance. to million a $XXX XXXX, our rate revenues, we Starting revenue reaffirming full the which for range XX% year XX%. guidance Now, with to represents $XXX our let million, of of us are

This be For rate million range material expect quarter continued expansion in no revenues rate change our in of $XXX.X to XXXX, we guidance new $XXX.X representing the a to net second XX%. XX% challenges but growth. dollar of of in customer million, XXXX, to in assumes the growth

and over customers our We having will XX% marketing macro anticipate believe sales headcount the increased our XXXX. despite value environment in existing current demand XXXX, from returns by moderate solid strong but with proposition remains in our

in given us, of and industry-leading growth ahead the of operations, room opportunities and people optimization. plan will recognizing that With for our investment, importance invest long-term by margins further the said, systems responsibly we continue and to

prior year EBITDA be up full continue range of margin year $X.XX the As the to XXs $X.XX range full in XXXX to the to with we a result, low to EPS of in $X.XX, from expect $X.XX.

of second in of XXXX, expect EPS we $X.XX. For the the $X.XX quarter range to

the for million planned million. of And range second the looked XXXX $X range expenditures million. to in Our capital quarter of in be the in of to XXXX $X to $XX $XX million

pipeline investments guidance, initiatives our product sales XXXX, the to conditions. marketing prior intend current to response on for of align support to to drive and with more Consistent the focus remainder macro specific we and in

and doing plan as system functions we investments well to over prioritize engineering. In in in support related investment marketing our so, in sales as

we by believe we growth As sales and and focusing try wallet our able will profitability. to while we on endeavor be balancing marketing to and execution productivity, sharpen returns enablement long-term share and

we our for growth comprehensive industry-leading In to top QX, industry with line delivering our in healthy delivered solution time attention and conclusion, customers. risk and immediate management profitability value --

our deliver investing long opportunity growth to responsibly We our ability shareholder are value. term on in maximize while confident to

happy I to would and Sumedh, any that, be With questions. answer your of

our And first comes [Operator with from question you Thank Shrenik Kothari Baird. Instructions]

One open. go Question line Morgan Stanley. is your caller. Your to from with comes is Saltzman Matt line next Kothari, open. moment. now now the Mr. We'll

is line now Your open..

questions. for Thanks team. Hi, taking the

you So over line the you single not curious Are see and when anticipate growth top guide to on QX, I I Just portfolio would product you outgo areas guys how mid- think term? there looking other do back growth getting teens acquiring capabilities? in potentially to billings, any billings to you to press the growth typically slowed do that guys you're the longer-term the here? growth that algorithm, growth of to revenue at of so but kind digits know that XX% look from high longer on, about

question. the Thanks for Great question.

we're what CyberSecurity up. with coming Management, EASM, Asset to as we mean, Management, cloud Patch be about now I earlier, adding will excited seeing we continue So total mentioned

the you we like had And we talked a we are consolidate. -- focus our customers where feel decision we had really what quarter through that had QX this was on really So that and there's call as as with last change made areas about tough interesting looking to decision look, quarter a implementing quarter. was CRO earnings

the teams and was that completed on good been of now bit little transition but now directly. disruption, there Of involved sales a directly has I'm course, that our thing is as focusing with working

so Looking XXXX. are growing today, looking for pipeline and at at -- maturing we a

We we and XX% we net of at our more seeing. are and last what et sales cetera. we're about to I retention better in are Compared sales improving the we macro, right year, for headcount QX, are execution. have growth mean, cautious course, early marketing getting our with now rate, at looking signs our optimistic about but

new we're I together about are that think, year. to we growth we get can overall, at rate about healthy to these back the even we business, plus so feel though we cautious initiatives coming the had our looking that last that macro. things product start And

a more add bit And just to to little that. color

QX look take starts If year-over-year QX at a a compare, easier. you becoming was tough quarter. the

macro the kind longer-term. said, have we the conditions, anticipate that and do up in marketing do a we like returns return. tick the that the year. rest growth and significant we we expected current higher headcount with anticipate growth the in generate So But of without type mentioned, and Sumedh to of have sales bookings to of for investment And the would

just growth And from quick like-for-like at just standpoint in follow-up. I it were able some those this kind benefits basis? as quarter LogXj it. at last all still on year, a pertains first know to year. the so of a quarter, Got last you can a quantify benefits lapped Are of of of to you it look percent what as the we

LogXj. a but an particularly. quarter, LogXj it specific immediate Yes, QX last strong We in benefit we did have to not quarter, did wasn't on highlight that last

Got you. it. Thank

line from JPMorgan. comes One moment for the of And Thank question. the next our with Brian Essex next you. question

now line open. is Your

seeing? been afternoon Hi. question. services, a in your macro a you us wondering, Would some we and mid-market love particularly to from for to of a bit Sumedh, view of was and might challenging. relative you my of it bit to peers what financial sense what little more exposure a taking have Good challenging maybe could you're competitively I thank have Thanks. on more macro saw quarter as perspective, little from maybe the your give a get was XQ see perspective you

Sure.

change I saw saw QX in significant a think really I from don't we materially we like QX. feel what in

a starts overall, think cautiousness. were takes getting of lot I out. Project pushed

people weakness there's the we as think in do scrutiny, layers else, I of just the new see look lower the and more the are I so on end especially like essentially, business of at, But we cetera. everybody et think -- market.

However, back they focusing trusted really day more they vendors one as they also switch, can they on to do perspective, about with. business from if feel a taking people that are are or thinking new want a existing step

are so feeling. is kind the of kind that's that And right excited having new conversation about of where while that what it we is and is business we now is are everybody

do instead on Qualys, one do another another and I management scanning and happening more? inventory with conversations and solution We can patch see a lot solution out of buying solution more going

you and the I get already have I guys, out that. of can consolidate benefit

those other so for QX. macro the we from than that, us in a the encouraging. there quite But And don't QX material are difference see conversations to

look macro. any guidance banking we've we improvement it in macro at stays happening and material as no And we issues as And in the financial difference the had. we -- really exposure then, have well, same in that our the from are really didn't the

you maybe more Mi, talk about Joo can So that?

if and we in comes haven't Yeah. as And it's side, we think anything will don't from conditions for our material QX, We in discussions financial from specifically see. things our our bookings. business, going seen About be our change business in to anything XX% institutions. involved our observed but of or

CRO follow-up that any I you're in in Maybe where That's the taking helpful. if super terms perspective? range. changes on kind you progress report a commented shaking can and maybe out a of sneak Sumedh, from you're hiring of Got it. And just

more for you then new guess, for CRO? And what incremental lineup hiring you Are year? with the aggressively looking in that marketing does are sales throughout and I your plans -- how are

being XX Yeah. years good a business, Look, here for think company I everything. the I have the and pretty of sense

we for sales to a do think leader. continue I look

time. XXXX, second like they back with great which hands team, did has -- been level for I a have us been working in on been I'm our they've long with and However, back I'm

we So about pretty that. feel good

from overall, this last have XX% to with a perspective, think year seen I year the we increase. sales what happy pretty with from hiring

focus think year. as move forward I So we and be sales with continue to and marketing prudent, not in being last on same sales as as marketing investment we our rate may growth in the

However, to third see. throughout pretty get opportunities quarter. again, about to still grow excited the that's growth, we we year and double-digit the and continue anticipate, the to We're

going invest continue And to so in that we're to area.

Got helpful. well. Thank Mi it. Very as Joo you,

you. Thank

question moment comes Henderson of next One Company. question. line Needham the for from next & our our Alex And with

open. is Your line now

Great. Thanks.

wanted So direct first XX% growth last quarter-to-quarter I ask growth North for quarter. to time couple the XX% on the decelerated a to revenue, and from the sharply from America pretty of revenue clearly questions declining

So strong the I've And got causing some -- the occur? the those of mix a the some that XX% in emphasis function cannibalizing growth I'm wondering that's in of is the is is that, direct revenues. it there company channel shift a of to

So, measuring are it? you balancing And between Thanks. how those? how

and mix is, between U.S. stay looking XX% across investing U.S. anticipate we're given International. approximately to the that the now, we making, international current revenue XX% are at we're investments And globally. what Yes. Right same the we and at do

relationship our on we the been versus In our with and partners. direct our relationship indirect, terms focusing with channel of developing building have

have rate be is right, compared more though partners, from do it declined, channel ramp-up anticipate seeing there, QX, we from and the to XX% strong but So shifting still we towards XX%. the growth channel now, been going in has the the mix Right is it even to lower. the partners,

towards XXXX in channel clear, channel direct your So it large equally continuing the be -- or skewed look sales to in investments? sales channel, and supporting at capacity is and direct you that investment in just split very between XXXX, expansion heavily is the as

on -- channel the channel direct the more of an incentive partners working managers and versus it's with on our more channel, was more per There hiring closely se.

the business we skewed force. the that direct more towards that in the dollar is made investment So sales

Thank you so much

for moment One you. our question. next Thank

line the next Our Rudy D.A. Davison. comes Kessinger question of from with

open. now is line Your

accelerate. Mi do me, of Hey, I excuse you question, earlier, I great. to compares you group accelerate on the calculated your billing think said quarter. Do a you it for the towards came expect -- be high the to you you to digits. in expect what a in had growth billings Thank you you clear, the to billings again, or taking clarify remainder bookings my do said calculated the current down to basis said rest you're want current X% easier, billing growth little for Joo year-over-year get this But to your I think, stay year, expect single guys. of you year, and throughout

We it accelerate. expect do to

the said take easier last first XX% and XX%. by grew and versus and XX% and compare, I if growth the it XX% when you billings current a half at So year, look rate the

it is compare easier second half year. in the this of an So

throughout So we to anticipate this the rate in the sole a towards growth year. do year

the to quarter, EBITDA outperformance margin irrespective don’t whether That I on guys continue the I or the Okay. big. it's you don’t the – and of helpful Got be on then front, small it. in impressively know there is the on revenue pretty

color EBITDA us as you add upside is conservative. to Any XXs go-forward margins of very mid-XXs guys is that going on forward? XXs rate margins. low are convinced the to long continue don't you more term, the how right low or it and rate, to the right potentially We guys I EBITDA such keep seems good know. like point to showing It seems

because contraction. been of a Yes. it's hundred a year-over-year you look XXs take low the at the points basis We couple at if [indiscernible] change,

margin. the it with it's as was an we ended year margin. XX% that A QX, in example, ago, year in XX%. EBITDA And XX% EBITDA know So XXXX I

that. down that of because expect of to We kind trend

That's the me. it for queue. you. it. Thank in back get Got I'll Okay.

Tilton for Wolf question. Josh moment Question line Thank with from our the you. of comes Research. One next

Your line now is open.

ask Hey, or current want you I'm just of X%. growth very best my be in kind anything I and for have is what algorithm. to the grew X% I the up guys billings card help billings investments going just thanks taking growth at for growth revenue on just us to the the us it the to us future information, you the of understand reiterating to the follow improve current is of your there can understand light with you indication to revenue imperfect question. is But straightforward last going in one. of coming kind confidence X% in to give growth future this year XQ? in billings billings

will that is And assumption the current billings accelerate.

period we half last especially year, the of it seeing QX. half last at because than billing isn't with year, reasons we And in current XX%. the easier QX a and of in second higher compared coming So to current XX% that had a one X% of be in the last in QX year because of is will tougher billings the and second are

we And XXXX. grew to year. far our big XXXX, compared increase marketing then, have only by In over investments despite made macro, the that -- sales as the significantly we in headcount X% last as did is and by we assumption XX% the

in weighted hiring this was XXXX. half most back Now, of

terms in able lower sell. distribution and So the even foot and -- XXXX, add they be -- there do of to out the is they add the do sales if in on increase productivity

have pipeline that that's Sumedh maturing. had we growing mentioned perhaps then And

expect even lengthened grow So growth with cycle, the and consequently do the the that to bookings sales billings. help we

But but did they your nicely they year-over-year just a follow-up sales, Okay. XQ. from ticked actually a that. like is looks incorrect basis, dollar math And on my then, grow it Maybe XQ. partner in slightly here, little down on

about visibility does the trending think What you sales? do into have part the of how compare to that visibility kind business? that that partner the you And the for growth of should of year? direct How rest sales into have the we

we we didn't same decided of before this kind working we around that have aligning which year out made incentive Yes. perspective, have to to managers way frame, the the from partners, program, partners. our roll us been We new and is last that with working fairly partner these with channel in time

of -- of to so, account managers our or lot these managers most partner. And course, hand-in-hand deals, channel technical work with a the

get we as with so, at on motion a do because partners, especially a partners to enterprise these certain are better in well. and amount of through mid-market we are of the going And bunch extent actively visibility, working with those this -- getting the as working the we and deals, some

And so we do And any the on we're more are anticipate investment towards number point continue that to think that going that just we not at side. so, I targeting this we partner -- -- mix think partners the specific will pivot not

Thank you, guys.

Canaccord our you. Genuity. next One Thank Walkley with moment for next question. our And question comes Mike from

Your line is open.

taking for It’s Good afternoon. Daniel question. on Mike. for the Hey, Thanks guys.

details some with VMDR how customers. business SMB, any just if of be management your would could for helpful. release some segment smaller pressure the you packages us with some your is provide curious of of this being on received on guess the this by I in there's So the color Obviously,

Yes.

we think months couple of them a launched ago. I

execution terms from have specific being line patch it team a multiple the they been package and these having than with do, to management, sales the streamline early fact positive. it's very as but quote position around like numbers, especially to So our still of conversations it. quicker in selling the move sales single able tracking they what packages They the to have feel conversations, been really that able improving items, have is to not would

We've positive got pretty feedback.

us numbers do different are well, that. if had any different tracking And we going actually optimistic quarters, over how to of as few we well. we're as the additional to so packages the given And response at to we're that we've impact next but see that's – looking with need

quicker say, So prop move line positive But as and pretty are – impact having think, I we'll that I'm how impact value that's definitely clearer much an item. about what early seeing. And actually track would in then overall, to is it's forward. an we're a the I indications quicker because continue and segment much single we closing of how

Great. the Thank you for much very color.

Thank next next our Kothari you. comes from One question. Baird. with for our Shrenik question And

open. Your Mr. Kothari, are you now there? line is

At this point, today's I'm for showing no conference. and further in questions. you gentlemen, Ladies participating thank

now day. have wonderful You disconnect. Everyone may a