Interactive Brokers (IBKR) 18 Apr 232023 Q1 Earnings call transcript

Good day, and thank you for standing by. And welcome to Interactive Brokers Group First Quarter '23 Earnings Call. At this time, all participants are in a listen-only mode. After the speakers' presentation, there'll be a question-and-answer session. [Operator Instructions] Please be advised that today's conference is being recorded.

to Stuebe, conference Director like speaker to now Nancy today, of would hand over the your I Investor Relations. ahead. go Please

have Good remarks, call, Milan CEO, our the but business. joining Galik, for me to XXXX our Once thank joining we comments our After a asked Thomas CFO. And on his again, the quarter Q&A. call. earnings Brody, us us on and is Also will Paul present first prepared conference afternoon. for you today are

As which a may company's call and include forward-looking company's belief the statements, the reminder, today's nature certain which regarding by not of represent future are outside events, are control. their

may our Our you ask from possibly that materially indicated press to statements. actual financial what disclaimers the release. We results refer condition in differ in in is these forward-looking

a financial our You of should reports SEC. also the filed review contained risk factors in description with

everyone, rose our revenue growth second net This margin something Account history. Meanwhile, and reached was quarter interest commission XX%. reached and pretax everybody. markets, our income DART for a strong, was in uncertain our record had IBKR reported highest at the despite

balance industry strategy, now. years. supports pay We and achieved cash This matter rates in we portfolios is have of global rates we sheet cash. using the and not prices in where four unique and seems run use you client can We billion balance and equity, our the pay months, to uninvested extremely ample with lowest a we We commission, our to right that on on three duration not portfolio. this weeks, a be that business one a That these means charge equity highest simple our conservative an sheet duration today. short over $XX

then same do interest you cash You available wait to it things With us, and clients two time. earn at out don't need the can our back. if be sweep it have and

clients to all their taking and our Interactive paying cash not moving have most markets. We using of not the accounts qualified this, in and elsewhere. do we seen it cash, cash Brokers their invest than if out rates client more them banks. we are of Because not high Because of see do

have not want We cash accounts markets. moving and active to on We basis. instant access customers simply also who see the elsewhere a net do client

inflation earn stay More investors that world. will to for and the has their with to them to This beyond true believe likely around been markets allow and inflation. to above a going more the as will us, level the us looking is are wealth of it X%. build has still I return remain done

the debt extraordinary to $XX of government is sparked now somewhat forecast $X that GDP. to a ended year, during costs U.S. This up grow XXX% adding thanks trillion spending government to U.S. by interest rising about is by COVID. trillion inflation

even will Now, fight rates cuts. term in higher need though that result state we soon affairs to short rate they not is it. of inflation, a contribute to This

volumes wise, here in pace active records Futures volume keep rise, not very quarter Product monthly sure continue XX%. reaching last options a volumes both stocks with and proprietary a well seeing fund commissions Fund still client year. Hedge segments the client the individual We engagement. are for this for retail last segment commissions grew as as versus rose quarter XX-month alone hedge while year. with contract March. did to XX-month

clear to per over commissions More up of in higher commissions. futures $X.XX, products as these and our options higher DART activity contributed XX% carry

part fees, very higher which and As a clearing exchange expense. explain in high higher regulatory futures note, direct and commissions our execution include

routing how by of venue give and to options, order well a offer it one or offer customers options their and it with This very of order, midpoint, complicated clients, offer to much market It above a below floats introducing customers liquid they're allows the willing of or even can new heart pegged act in is bid their executed. that pay. makers. This the we As product the is more to us clients the markets, what to give continue bid And order we space, engage success. the a If where IBUSOPT is made an move. counter parameters automate works unique for with to the do. want gets options our like as the for appealing we we do, our bid [ph], part the clients' get and especially to and what the have active us

is in we already what more deliver. we of What the future see

introducing Our and will net of XX% see hope It looking first are the still onboard new completed accounts broker over start large of accounts by two we quarter. and to end are we slowly the growing this it to the year. the just

to onboarding on in We track account the second the start also remain large third quarter. i-broker sometime

with advisors features. on several We've focused also to financial appealing

for introducing make to build on easy and ETF tax We customizable to modeled them indexing portfolios are customized it goals. but efficiency soon for stock investment

minimums, customized advisor or Capitalize specific have charges a and technology will or custodial reporting exclude no personalizing purposes size platform adjust each shares fees. need. gains software or on clients component as We losses sectors no can of or do fits require charge their we stocks all own not ticket ETF weighting, stock fractional clients Unlike indexing, one for with tax so that

pay X,XXX We and clients research finally, firms, fund XXX financial fund you you third customers from research to mutual a countries. into how also ticket commission advisors ticket party chooses for put customers say customers. firm money no global allocation particular means and one we advisor investments. on that an even several fund That's And At $XX.XX to Evercore if example. charged XXX an U.S. for IBKR, independent a offer other in many financial our only At one mutual separately now the other no ISI just matter fees, advisor fees. their

and the around people wanting securities countries, Interactive on exposure and in U.S., trends are invest capabilities strengths particularly the income Brokers the the acceptance in and taking the the secular bank wealth. levels troubles, More confidence way of cost responses confidence rising the markets. to looking less More and developing great is to and have gain sector that investing seen build debt to inflation, world. then markets to in to investors the so I globally worldwide have I place different mounting countries that far U.S. service.

is $XXX to look markets debt the year. deficit. ahead around investors to our expected This XXXX in dollars rise and growing This XX% year added billion expense stay quarters U.S. this of is to three of to clear a It and investors cash Interest having means when to their uncertainty. without cash to all and losing X.XX% next We trillion is that let gets low to sweep. on earning Brokers all increasingly the inflation no balances world to interest to holding on more on going or Interactive pays clients proposition. a is to know more people its that it

to add investing. Campus continuously easier make find to use relevant of We website better to interest the and it IBKR educational world for content understand to simple our to topics of clients

security. and their in options, We our about territories XXX the their them educate countries and opportunities both over will customers and serve

for people to and educational us. safe access add as offering well all continue a strong tools international will and a excited with deal as where leader sheet, as accounts a We about comprehensive and take to balance position are good

the go to call quarter. for CFO, will through I numbers With that. Paul? over the Paul turn the our Brody, will

Thank joining you, Nancy. for everyone Thanks, call. the

it As we'll for Then usual, going to open quarter the up questions. first I'm review operating results.

exceeded X $X on quarter of with items Starting with with another sheet customer the Page first account in revenue billion and balance the a quarter strong we revenue recorded net the that time, release, growth. ongoing record

volumes the Commissions despite interest commission mixed Futures are strong, quarter, potential trading once again for reached We from of declined year's driven record a last markets and in levels, expand Options continue priced equity future. drop lower stocks, million reaching revenues to stock by our while in volumes worldwide. both and $XXX share

reflected larger rates an cash benchmark higher increases Net U.S. partially from points their have standing qualified margin segregated the is effective owing from cash and in and portfolio. on benchmark quarter higher XXX loans rate interest XX million, as long policy $XXX hikes gains to customers basis balances, average first of quarter. of income moved segregated a the year to interest paid rate in our by rates customer on above last funds. through credit this pass were our basis These to points we interest to XX offset points of basis

reduction million $XX generated the with $X risk of fees contributors million, options $XX data Other which and exposure risk drop exposure and $X payments a year to revenue primarily customers, of quarter positioning of risk was fees. fees liquidity million prior led exchange the driven from million. of services being The $X fee market by off biggest million, in

of our investments, $XX income our a losses and Other adjusted as the realized excluded non-core we and reasury transaction. gains items, gains includes that in $XX excluded these and our currency U.S. removed strategy, the our And diversification million loss without many million other items these quarter, was principle are for earnings. income of on Note portfolio. unrealized on

driven commissions pure in clearing expenses, futures, measure higher and versus higher We profit, we it regulatory execution higher to options to Turning what last fees, clearing less liquidity costs and carry gross execution, which and call transaction. is lower costs. distribution and rose rebate find transactional led by which year the volume volumes useful XX%

commission of a and quarter, execution rebates transactional which were revenue fee by this words, a combination XX% clearing percent costs, of gross XX%. schedules and driven trading As of other changing a exchange volume are profit in

fees. item through distribution pass the included clearing expense, data in and execution, Market is

revenue and reported in While is data the rather in fees commission. corresponding than market other services

exclude purpose, primarily expense. we in quarter, data in the this first million For market $XX

driven up benefits and XX% the fell over adjusted year prior its our and below versus and inflation, quarter Europe comp dollar net in somewhat revenue, benefits million expense or to in in XX% by the rose last and part hiring level. by of XX% while $XX year, APAC and terms historical expense Compensation for

Our was end headcount at X,XXX. quarter

primarily year's expenses versus on expense. G&A quarter, advertising legal down last lower and were X% first

a our XX%, our teammate as rate talented future we high means automation tax hire consistently business. margins, and Our of invest of was adjusted pre us, control margin as higher while interest record continued well while remains maintaining in expense benefit the people

the expense reflects public million of operating of million. and $XX the companies $XX sum tax the million $XX Income companies

of the Page balance sheet release. Moving X the on to

were supporting assets total $XXX We in at cash aimed quarter, at growth securities. our over by driven with last the the sheet a of end maintained year balance and March we growing the ample our business increases long-term during liquidity, segregated maximum XX investment With Our and debt. flexibility financial term portfolio was no of of as short have The our duration days. resources XX, and providing markets. volatile billion

on data X operating and of X our to release. Turning Pages the

and versus futures, respectively options was X% quarter. Our XX% for customers share last year was trading largely ago the low moving Stock very strong, year's quarterly quality and the highest volumes is to sheet and X% most. first level up volume higher both off and pink all attributable as drop their other quarter stocks and contract impacted reaching in down over priced was to stocks investors

and growth that with net and prior of can XX% X.X and IBKR up the higher day the volume per Total particularly per contributions clients you last cleared see account per X our Page from paid order On cleared million XX% stocks down million from XXX,XXX customer account X.X up order in our accounts stronger that add quarter categories from included are XX% remains commission year. over an as DARTs Pro on $X.XX quarter, were trades and robust year total year, mix all over prior customers commissionable options. product the average

of and the Federal Page reflecting stronger the and group central as ago quarter Australia GAAP earnings Hong X margin net than Switzerland. XX and Total year rates Reserve interest doubled points Canada, margin as more banks this Euro this income This interest the the Kong partially each twice XXXX, interest interest includes Many on presents $XXX numbers. target basis in to March. February customer a offset also balance. series in After on higher raised by quarter, cash expense segregated increases rates well on zone and cash million UK, other net our quarter. loan, rate by seven raised

rate to Reserve short interest Net us to benchmark rate more has closely to quickly. but managing asset on our cash to segregated to was and funds, million, also maturities up liability allowed which match Federal on $XXX pick increases primarily due duration invested hikes,

so ago income days, drove with At U.S. higher into balances interest was March lifetime. rollover fairly our XX, portfolio also new short XX segregated higher. duration XX% quarter over average cash increase the the investments in securities and rates year

from first significantly income. the million is driven higher higher Margin declining rates million, $XXX have year's U.S. and margin margin loan last $XXX interest quarter, rose year, to up loan internationally in from average balance XX% despite last interest

It's lending interest generated portion that on while Securities is quarter. to year the as about collateral line also pace. noting net strong from quarter that a by opportunities in from year down XX% It's estimate be greater securities up case be and invested year. $XX quarter. million, would securities from because without a ago is in the other words, million, $XXX million reflected lending worth funds. ago this segregated lending was cash, benchmark shift rise, of maintain relatively securities the interest cash We for revenue rates impact received the lending versus the interest the reporting $XX last In this item, then segregated XX%

many pay we interest qualifying interest led first grew balances these rate the increases. as through in pass our customer rates million credit customers to $XXX our we our to on balances the paying higher quarter. as We in paid balances customers currencies Interest or on on

Fully cash points at rate us, rate and we were the clients programs unchanged basis leads qualified to cash, on not sensitive us. a hikes We XX to their that success the cash in use from a especially cash their accessing see about does to on their of moving our $XX policy clients Thomas with offering significant We component immediately their them after sweep clients consider from full clients do invest. away balances all through pass billion. first that this not one our who believe part. prevent want balance, keep mentioned do choosing active roughly to

for the Now of our impact of in estimates increases rates.

cash one our or the $XX interest rate come, basis with these rate of so rate approximately balances Given Fed Fed include points the on is estimates net to customer and About at annual the currencies. an XX, XX is in benchmark. of at not of produce in rate increases each balances in March for XX% or estimates dollars, point we effects more based exclude starting change estimate to those of market million that possibly Funds funds hikes income that U.S. date. expectations increase for X.XX% additional U.S. our the effect effective Note

which income produce a increase about $XX million $XXX benchmark a additional point estimate all point basis and We XX basis annual in net interest the to at XXX non-USD relevant increase. of rates rising rate million

ability effectively deliver generated and a first as expense performance company meaningful base the grow a strong volatile the offering while the we core business customers, our risk environment, quarter and at in low cash conclusion, with and and In in services controls. complex reflecting to our cost, all to our customer manage interest continued a strong

with Thank that, And up open questions. line we'll for you. the

Sandler. And our And from [Operator Instructions] thank first you. Repetto from comes question Piper Richard

line Your is now open.

this $XX understand question, Good sort question guess this just Thomas. first said, of I And the unrealized I kind a been in something? think to you removed onetime Paul. this a trying in evening, you're missing well? Paul, of gains? other has thing you Is question. onetime mark, thing? accounting I'm as Is million this that realized and accounting quarters evening, understand done just quarter? Good the the that and whether Or

Sure.

quarter's is well, effect. effect So a this onetime

explain Let it way. me this

our By and was which fluctuations, the financial million. and portfolio balance treasury temporary statement the have losses That the income we because sheet. the were all accumulated in statement of As the the investment balance market movement, our you about sheet. of end the year, mark-to-market income on are to treasury $XX have portfolio both statements, our in in know, considered reflected the

operating non-core release, to the earnings our the reporting, For in results pull quarter, what is which every release in mark-to-market effect. we those we out call non-GAAP

pulled cumulatively, of non-core purposes a So, reporting. had reporting. million by the raised We $XX losses, for the that non-core we accumulated end the the pulled had loss had year, we of the and that the out out

rather the realized by securities those some it liquidated erases -- reached back them effect, we maturity. was holding quarter, of in to in upon sale previous putting accumulated them loss, when the when first securities. the it's During liquidating than And it

So wouldn't on those short. all reducing And a sold. to very the That were going extremely on portfolio there's remaining we to forward unlikely much mark-to-market expect duration because played a role XX duration short our be at impact in down also days portfolio. much

Okay, that just one quick follow to up point, on Paul. that

weren't why these to So securities then? maturity held

based sense in and higher made make We a mark-to-market reduced sell security investment decisions reinvest it time-to-time market in result. it felt We that conditions. currently And rates. also fluctuation looking our forward, from on to

in to that quarter year, it the would As At quarter been way value towards approaching approached, we it We long-term. each all par back made and it they very over would we would resulted have the of would it the the of were have the this this maturity. have it maturity, recaptured have all They four have we quarters done end year. would held what would not to have until end thing par exact at once. declared value

us It last bit little reduce year. also to our a taxes allowed

one Could said to Understood. away that question it's an brokers you start Thomas, quick give guess, And update on, from that, going go you us expected I just just guess the I topic. gradually. on quarter. you this to introducing

that on the guess, is more just other So same, it to institutions there? any I it's dealing deal with progress the large with difficult financial detail

like that? you to would Milan, answer

Sure.

vendor through The to the The is employees set in broker of entire first already basically of clients So summer. them started integration, currently the employees. quality the existing them their for two the and its the all functionality. from going aim onboard i-brokers are of testing onboarding their the move the

some summer. QX. maybe be should boarded on i-broker latest in first delay, There so the be the fully could So

bigger. of have that more a onboarding, involves second start is the entities. will QX. slower, they is little The their started relationship likely moving It in not yet i-brokers of two They most

thank Milan. Paul, you Thanks, Okay, and very Thomas, much. and

comes Daniel you. question Fannon And next from And from our thank Jefferies.

Your line is now open.

expand hoping commissions there's growing help us success provide segment. the you're Thanks. could and the there. I think XX% upon in can share I you but But about contribution hedge said stats you've to having you was funds think it were that taking I you year-over-year, other that been of if know segment. maybe, up the

have other what stats you So mind? in

you And growth. and Well, I the guess customers, customer terms of think of in number some the I then goals. count have

think of --- I in terms said previously you've

six, of hedge have was far not think we ahead going Yeah, there a us Credit is -- funds, number as so number be look, we as and we of Suisse that to this quarter. that

So we will barely ahead hedge be funds. America number of us of Bank of then And ahead us by number five. also of

So we hedge brokers [indiscernible] four It based prime believe the fall. is will at funds. that some in be five we number or issue number for will next time probably the

sweet terms having your Okay. the mostly the And -- spot the of also it I the where of in what's is of most with the outside average the size? in but or the success, size And it's -- you're U.S., assume

think is, size average The $X billion. I

and So funds, lose few money. hope make they few know, of very you many of a I course, as our mean, smaller is them, the are of quite them, of them

stay are that And some them bad, and we of some become does of large. So them with us. hope

hedge that broker. are also We sometimes large but prime second probably the or third funds, or fourth have

they them rates executions, from. at primary into which can ask borrow various better us. they they our inventory or the beat a shares they they actually like hedge equity borrow our issues to fact and rate, because, like us they use they when fund, can the that B, our the come either to they giving them And the up to to that compare hedge see So executions; or from us A, short

movements the And income basis the talked the rate onetimers the Understood. you would in be can on treasuries, a of just going confirm by other that you what and forward? that kind run about a with then excluding portfolio

Paul.

other Well, things. investments various other income includes and

that time. a over and it run fall to a has rate. it's little to pin say that will difficult No difficult it's investments And, down. So rise

think in no queen onetime three and of the look we I digits, there forward. that's how the look fourth or But numbers. the as Those I it single if at are that's before, historically, quarter, the going the should was we $XX quarters about most for guess everything million was,

strategy currencies of down, Yeah, we that currency of the income. that let's diversification and remember going results versus component call are global other our dollar up

component. large a that's Sometimes

practically quarter, This nothing. it was

the imply least So, you, because make that's at and number you of disclosed exchange composition that's for we our rate predictable an estimate. a can for global you because

thank Okay, you.

of And thank And our Craig Siegenthaler Bank question from comes you. America. from next

Your line open. now is

good Thomas. evening, Hey,

Hi.

for partially start way the we up nice Fed your on there IBKR next different the of on any way way and is assets, cuts the also position short tailwind duration on a the up. would just fund balance seeing large that sensitivity look the the reason So over provided asset the given equity If the year, your any than that down sheet?

Well, we we down, increased on by same getting the and are a fact accounts. would more more for except the by amount that the way we decrease

extent the back to get interest rates, cash, similar do have believe year ago. would back to us going we course, what our do But not income and to a same So, with zero. more it I to keep more I if it of then to moderated. be it trades to would is zero to goes that the more But mean, as clients will get be be interest very we'll we

Right, Thomas. thank you,

And Budish Barclays. And comes Benjamin Barclays you. thank from our from next question from

open. now is line Your

the be much on that taking so wanted this onboarding thanks I for circle are back later to broker to year. introducing Hi, question. clients the going

But part these Do And are perhaps as a the Is assumption? of that these offered think you assumed a in that of, previous from general should cash sort a your see that of What's that, understanding the productive balances think sort of from we new be over over clients we generally lot that step clients the retail they I are existing Should new expectation IBKR sort it's sensitive could with broker. that end? to platform you the coming options think up as that activities more over? with there's become time, become fully a customers? about sort back on join, rate of of time. more terms cash? a how they are familiar as fair of

it is to the year, new to generally So to after and in that, three it then $X starts first goes grows and account a $X, two with or $X years.

I customers not I any expect from don't these So to do different be them.

quarter, that's, And sort by thinking banking futures in with lot that's of what helpful. Okay, the there's to in the in the sort strength that just of over of of sustained particularly months kind the then, possibility of the part Or do sort retail a this degree continue you sort and in sort March sustainable -- about think created and next a taking was several crisis? response of options from of again, longer for term? options activity. To of futures that's do you engagement just for think to volatility

for you or XX the days To frankly, tell past so.

were Our certainly commissions in days. preceding the XX than they are lower

the generally, So climb and banking up, go to they And when crisis they start do seems have the But not. some contributed to that down, decreases. start activity stronger then when activity markets going activity down subsided slowly increases. to certainly

in we're commission the So that's what seeing side. income

we more and as have The we platform. is that towards is an here. popular of there getting trading the clientele type offering our the And part options of generally more that attract option and component additional looks

trading drop growing going trading So the as market. over and be general the in the to that time, derivatives is is in the expectation volatilities options even

so Got helpful. it. much. That's Thanks

Voigt thank And And you. next is question KBW. from Kyle our

Your is line open. now

-- been highlighting Hi, in making more have this you're good And other been that and you evidence on recently of of you've that that push balances. or cash, to of I yield more IBKR because seen comparing paying yield marketing differential and yield you Thomas, marketing clients also accounts noticing at other brokers because ever and brokers. evening. are of cash assets that the the recently? some you remarks from consolidating the that prepared you're your have started or call we've the other guess,

Well, unfortunately, I not. did

months are ago about moneys three as ago, or they a months two were incoming month the same So the ago.

So very, steady. we it's very steadily have --

seen haven't up. we any So pick

haven't also drawdowns. We seen any

this Understood. wondering some we've up comment trajectory the users the growth you've positive are zero if I And one quarters. seen in was your day the wanted trading options, to growth you I term. the larger that expiry could know speaking, for the options [ph] zero rapidly just on question. But over believe the growth day FTX that I quite and prior been follow of to medium is on broadly I customers on grow understand few the of of products. over past sustainable

those you we give Just products as years next over volume wondering well. on IB. products just your day you're as then client on whether as us And us which those could the the if segments growth thoughts in few sustainable give any and also you see look detail seeing, utilize within broadly out zero this trend, options

Monday So it -- one ahead it's position in take right. is certainly expensive day sustainable, because a less options of are for people people to us, of as

several there position would days news. would they to to they have position of they that the So or take had was though that even that take read a the run, previously, they

say sell options impose or portfolio. that for on way it's the cheaper them the is use when a it's they their to them bring and and portfolio, it So Also, buy then option. cheaper day for lot order. one to in close position accumulate one them portfolio And and larger to the easier a for -- people that day to take want a market

Thank Understood. for just I And last that. you one question. one follow up

company. sheet of balance the regarding Just the

the costing over assets there customers figure build $X capital safe as that to feel continue few past know that capital if excess guess I adequate is the level, billion to brokerage excess And thoughts, not years. I capital over and there's operations great. be that to previously of close think excess support prime it to I feel at of regulatory as of have, help in excess some now needing therefore rapidly requirements. you want would IB. past You of grown help stated the kind updated But to has And few just to and your level where you've has an years? you capital significantly

think ask of that to amount that question you have time, of I just But peers our should appear then. all capital. the insufficient Many

very to capital And are it. as do. we no, we we proud growing much hope have keep as to So

Thomas. Thanks, Understood.

more thank comes from [Operator from you. Instructions] And question our And next one Chris have And Citi. with me. Bear we Allen question.

now line open. Your is

Yeah. Good evening, everyone.

was And an past, you strategy. on, about give has noted us or the Just in spending is marketing update that less down that of evolved know a advertising marketing just recently? the I the targeted to lower. opportunity the you result helping the just here? environment advertising on pullback Can strategy in G&A touch so wanted what the year-over-year lower -- being How talked just drive

notice will the you to interest place? They're advertise our cash. you trying available on pay instantly our ads see So that that X.XX% maybe, up we cropping all over

And have spending. advertising roughly our so ago, advising that is certainly. a so We doubled month roughly our

So larger quarter. the in spend advertising next you a much will see

opportunity scale a perspective, whether past? regional to recent pace you that or more one been because fast Understood. need And less you has growth the in of just so headcount The quarters. one it's just you're from term just have Is then near in as country on areas, or just reaching just quick the certain growth. grow moderating don't in

is this a think CEO question. I

The of paying What X%. compare year attention customer to I human costs ago capital seen one are decreased by obviously the to is, is service has personnel if expenses. we So we numbers our our quarter, a significant. have lot

up number personnel, XX% administrators Our similar, and by which is and team went XX%. by Technology our that system, has compliance say increased let's technicians, programers, Information system

numbers signifies our Information size fact financial services are we just our for these leader of to tools bad. The not our a Technology increasing that So are team the in commitment being technology investors. the

So the amount team as you can of us we expect to work. have increasing grow

think at level. service, customer team is a The good I that

seems number very of they of to the that appropriate have wait phone customers accounts us We to single paying And are be number have have. We calling stay is team that so size attention queue. our closely long the the the like and that of to business to times that the we digit minutes. of low the we in level how

do One technology. done user friendly the has that our we becoming and we over in self-service customer FAQs service that good of platform a type to with do grow to reasons that job very and of time that and the have team providing have fact chatbots not more to various is

as the far The perform, a just that operators activity. our those to assuring there alerts positives. it have that attention XXX lot customers signify they they're the them few of staff, generate. problem, a compliance both is we a on our have, we of a the various is do there to surveillance that well trading then transactions or check as have whether because As we that as of we to pay And systems alerts that increase false

those the putting alerts. are of targeted, more those the making as easier false it as operators service We decreasing of number significant to amount alerts for making positives, well energy into

to the I So team growth down And size like achieve that would team, will the believe of I well. as that we that. slow of

good. to The investors. Obviously margin what like is And is would size. customer the -- our right we our smaller, I team would profit think are these our at if that deliver it greater. to be So numbers was

Great, great color.

quick moderated pressure side, one tech up that been IT all, Just cost the as more there's talent the is in follow personnel as sector. the on of

news. have very about the hire to read So been become in Obviously it lately, all has good can We layoffs. easier technologists. there them

have We bonuses. don't including offers, made making it the kill in now So to signup that easier. oversize ourselves

and became that. advantage are yes, we So of easier it taking

the very good. can a is of do so that. hold is that would get like to we Some obviously available that we And talent of

lot, a guys. Thanks Great.

Pleasure.

to am thank questions. no it And would Nancy Stuebe turn further And I remarks. like I closing showing you. to for back

Thank you everyone participating for today.

next As end. site transcript a our replay available clean for we you be version And this of our Thank the website. posting reminder, we quarter also to will be a will tomorrow. call And again. will on you talk on

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may You disconnect. now