Frontdoor (FTDR) 1 Aug 242024 Q2 Earnings call transcript

Ladies and gentlemen, welcome to Frontdoor's Second Quarter 2024 Earnings Call. Today's call is being recorded and broadcast on the Internet. Beginning today's call is Matt Davis, Vice President of Investor Relations and Treasurer, and he will introduce the other speakers on the call. At this time, we'll begin today's call. Please go ahead, Mr. Davis.

operator. you, Thank and XXXX everyone, for Frontdoor's joining Good conference thank call. quarter earnings second morning, you

Joining are Jessica Cobb; be on and release me the Officer, slide used Frontdoor's Executive today and can Chief Frontdoor's during Chairman Investor today's Financial be that Officer, presentation Ross. call press Chief The will and found Bill mobile can Relations Frontdoor's website, frontdoor.com There in detail additional also brand Store section Google which at investors.frontdoorhome.com. and you of Play. about on and app the App new our is download is located that our at at

cause our more X whether are in the subject as Please made results that a to uncertainties law, today, filings are statements. undertakes result by statements related events with forward-looking Risk and to contain company Factors detail X, information, from any obligation materially and Slide explained on stated here to All remind update August webcast the filings statements. for SEC. new to forward-looking no to I'd risks the of section detailed our as to you statements statements the future various a required in such and As risk differ call forward-looking may forward-looking actual and factors discussed except discussion of are could those of in of presentation, risks statements like today. These as or refer company's and These the this which uncertainties, the otherwise.

call. certain also reference today's will non-GAAP financial throughout measures We

the understanding now Cobb financial most terms for you Bill our Bill? measures comparable to presentation financial definitions these to call to We press appendix their turn our non-GAAP in in the in these over assist of order of financial comments. will reconciliations to opening better included performance. I the have release and and GAAP measures

Frontdoor, Thanks, record a consistently to financial quarter and performance. for Matt morning, and operate continues good this Davis, Inc. everyone. well was

revenue grew to adjusted quarter: flow doubled points have $XXX cash year-to-date our the million million, on XX%, X, cash $XXX million, to XXX see to Slide can grew you X.X gross million EBITDA through X% margin XX% in $XX of July. million than second used $XX record shares repurchase and we As basis a more free expanded to to

Now X clear, #X our our objectives. To strategic sales moving base to of strategic our home Slide through remains and be warranties. customer more growing priority

headwinds warranty believe must slides, return While the will few long-term the sales. opportunity warranty a near-term to we in growth face of we home category, home which are in impacting that macroeconomic the strongly reality I

of As taking we outlook prudent a member in are the which step result, her cover will section. for slightly count, lowering Jessica our

we're is business. line objective important continue of third getting and finally, This already of Warranty. growing our become proven a just has its strategic to #X X-XX worth our to And Home has started. very objective strategic our acquisition is that the business Our on-demand close Buyers

So and where Slide let's acquisition and X-XX refresh on stands. quick move a to X the

a perfect and of a it's fit us. home this As strategic is me in great June, you as structural say leading a for provider new business warranties, heard

We more will customers. gain

adjacent benefits. product generate will We an of all portfolio our will category synergies, which expect diversify significant we generate long-term into to and

a our work X-XX continues integration itself, with to of for acquisition the team ownership. On to prepare transition smooth

the period waiting is The our Denver that today, main applicable team Hart-Scott-Rodino federal expired. to update has week. this this been is really great in the transaction close news, fact In for has and

acquisition Bottom to line, we handful a track the of in regulatory quarter. fourth Now states. wait from continue the to on remains close for approval

Moving to Slide X.

business. be presents starting This think success at opportunity runway. a plenty with has proven our now that to operational it with doing great and are of well Let's areas real look a on-demand exceptionally we

home. things of vision our realizing are We a for all providing ecosystem consolidated

meet more reaching our through these effectively replacement homeowner. member experts partnerships are base and of growing wallet to maintenance every network of leveraging repair, virtual homeowners great across independent of our and the our share contractors, and We needs

off. has our example, taken HVAC For new program

of and delivered surpass revenue we $XX XXXX, track of year. to far program on this all are this million that For number

We continuing to technology to streams. grow alternative are revenue also our build out capabilities

partnership California. Farmers insurers installing great Insurance. prevent in water new requiring with Our provider damage. contractors by these our are Farmers homes opportunity in valves just shutoff a it's exclusive of Moen this. valves This through a the is growing Frontdoor California and example water plumbing other insured is as for to And not independent is Moen

states expand in us November. into Moen to other and end say QX to have about fact, this of We'll have our call of a the more number Farmers before earnings In asked during year. the

moving to continues story retention be for terrific X. to another Now Customer us. Slide

quarter an of second grew all-time retention Our XX.X%. rate high to

use While includes our job customer estate customer last of more and great which contractors a done members mix of the AutoPay, members this has also a XX%. of expanding journey, improving real lower preferred customers, finished year to at team moving throughout service, engaging

Now is X for of let's remain the to and long-term realism near-term our a issues challenge Slide story move that cyclical I a business. optimism. of look some at a and believe this

the we've news Home As is the consumers outperformed based category, American of Insurance, announcements U.S. is category the nationwide many leading California. for the top of our from good Shield, other us maintains seen analysis on data from economy. The that leading recent are this spending has home data This several impacting which stressed, our based actually on our competitors nationally. less sectors California earnings providers in player in companies; in Department of and warranty is and already

be at let's were Slide Last market on existing for the point to X.X December a significant look of X a be In million and now real our in XXXX. in major years not projected that To are the continues drag near-term remain Additionally, things home it's real business estate today. closer XX, been headwind the short, take improving. sales to for likely It's for balance a category. estate so to XXXX.

to decreased homes. That's million the the report this run to is is amongst activity a recent X% from annual X% rates price According grew most years. shows, that to decline Association X.X not home happen. Mortgage remain National and Realtors, prices year-over-year as in to and of also inventory record XX However, sales the of rate of going estate year-over-year home $XXX,XXX. elevated said graph low. also median the real a lowest this remains NAR has

market real and one While change. bad, will eventually. before the estate will cycles this current situation down been through it out is it of come The has

market refinements We will make turn. that will continue us to the when better does positioned have

a on the base XX. segments. Slide American May. dive challenges appeal the AHS To facing Shield we income This demographics; customer ethnic wide to Home understand key better Turning all completed and showed in across ages, that home analysis warranties, deep has

be Y younger about the X Z. for between clear, Let of Gen XX% AHS customer not are out. About is Millennials, XX% and aging our customer skew me and base and Gen boomers base Gen

fact, with buying In segment XX home overindexes the AHS to primary of XX year-olds.

at households. look with on household perceptions, let's of to AHS XX. levels income lower some used an contrary income various resonates AHS for income and Slide offering not Now that's is

the and the household reveals ethnicity the base. have our XX, that long-term member about making our On Slide In also incomes base of opportunities data we to analysis aggregate, on half $XXX,XXX have annual more we members other can AHS race of the makeup targeted shows that see fact, drive over our with less. customer half acquisition. In

more have are and black even spot indicates to believe AHS Millennials is warranties. Within favorably said, we there data we this as profile about as currently while that more Latinos. on the they We'll of As sweet disposed during segment these homeowners, the well say our opportunity presentation. future home with Investor are Day opportunities millennial homebuyers to overindexes with

X%, actions move the the let's competitor. have nearest In to is warranty at do, Google new April, we website XX campaign we awareness AHS strong Now taking now results. sessions are essence, home sales. the doing brand are improve now AHS is to for it Slide our demand XX%, marketing for comprehensive searches and Brand hoped and exactly engagement. yielding we up XX%. drive would launched In what over brand increased relaunch double ahs.com

to deploying XX% similar XX the learned month going is initially also throughout off retention were rate later discounted. we and July of months are not a promotion. What renewed time-bound ran another forward. in our members who programs strategy. as new of In the March With promotion very grow that members short to those XX% off focused this discounting price positive confident stepped-up using and that yielded members discounts at learning, this retain XXXX XXXX, we success, we to a ran are We acquire term in such With we results.

and most and the improving brand expensive educating a as moving to the next value convert point likely further a of targeting home such of they recent warranty out, of drilling are are homeowners looking relaunch, of the to about appliance. purchase when consumers down at Now we our AHS following the an phase

Moving Slide XX. to

are primary Here home about reasons for warranties. opportunity remain the the we long-term bullish

for market there home million capture believe our huge, to there and is XX million homeowners. XX today more. we X approximately opportunity warranties with million homeowners is are research, the Through believe at we First, warranties an least

a educate home to benefits the presents massive of this a Second, warranty. about homeowners situation opportunity

own the For our our mind millions peace to warranty. consumers way home a remain research against Furthermore, being that warranties the of shows unplanned is living, pinched cost expenses. of excellent home reason by guard an members of #X

member expansion. coming future subgroups Millennials primary as opportunities to group have and certain the with are this U.S. the significant we are Third, conducive demographics we know population. of to forefront homeowners of

long-term they I'll demand offerings of clear technology quarter. demonstration optimism innovation. served. financials of factors the we Finally, Jessica The turn high the leader, a as of note, want track it now needs of the give industry of over homeowners we're us a all on-demand proven warranties. And the these of home be is ways record to about Together, to for rise to rapid meet for how our on in that the have the using

Thanks, and morning, Bill, everyone. good

XXX XX, EBITDA record period $XXX million. On increased Slide XX million. to And the another performance. Slide to where period XX%. million. gross prior year increased quarter turn margin versus $XXX a year Frontdoor XX% will to to improved financial strong delivered to see will profit X% million prior you see versus XX% points basis adjusted $XX XX% the income increased Revenue Let's you gross and increased profit of Net $XXX that to

I'll conversion Let's Slide where we volume. adjusted This the a at in by favorable decline X% now revenue XX top, period. was EBITDA. for second over in to year-over-year bridge the in X% prior of $XX more context a price had by improvement year million offset the the move partially driven quarter Starting provide on increase

impact increase by an HVAC offset includes partially which As the million lower a reminder, sales. of $XX was new warranty volume, this home in

to transition a contract claims and trade to initiatives. higher decreased $XX turning million by Now which improvement process service cost, fees driven continued

our trade cost. parts response As transition XXXX on service reminder, cost in contractor higher we and a trade pressures, and service The increased business. to related higher equipment fees including in greater to has our fees X impacts expenses inflationary

service trade contract normalized a as inflationary favorable slightly net Frontdoor's in When are a a fees service higher environment, a service fee cost inflation was to with income on service net on First, result rate lower cost request quarter more external inflation. trade combined second the our than cost statement. these as per offset expense increase fees dollars in request basis per claims

behavior in service to customer as until we amount. Second, accustomed change a of fees in see new a short-term result per service customer the number become they temporary typically requests in decline the higher

our continues with focused approximately XX% few that relationships of from Contract claims our to initiatives outstanding also on the high work the our continue network. costs cost $X reached high doing contractor and and across review our impacted second process this weather is to of great by over benefit more laser These were beginning power contractor to implemented we our given which moving directly bulk to improvement is service past requests team management the an the years. quarter. million. leveraging a record relations suppliers include attributable and our the cost preferred strengthen to purchasing contractors, our program, our Additionally, negatively in by peak especially season This claims is result team be

of $X increased administrative general Now million prior million to costs, moving the I by year finally, a costs to to the the which million. $XXX period a the anticipated partially higher beat $XX primarily the a lower optimization And decreased provide summary, some given requests the service by in sales increased and of sales million number is over fees. here. number professional was which primarily degree requests trade. of $X cooling in moment and to EBITDA efforts. due of due want adjusted service take happened expectations driven XXXX costs, due primarily XX%. context compared exceeded to our increased Approximately offset personnel our what In to decrease outlook second to large increased HVAC of in mild a We days million, quarter saw weather that by we marketing in as and midpoint favorability $XX to HVAC

saw by as was rate, base. the driven our only moderate HVAC geographic factors fees and incidence which we a of However, trade such in increase change customer other in service concentration the

benefit Our such earnings as utilization process from beat initiatives million preferred increasing also to reflects an improvement $X contractor XX%.

related periods. $X claims cost had to million from favorable adjustments we Finally, prior

scheduled adjusted second working June seasonality. Net was cash. million quarter for costs and is seasonality used high and was activities to a investing ended related $XXX due of that XX million cash million the $XX ended Let's $XX financing of reverse and a unrestricted from repurchases primarily our capital was was for of I statement cash. in and as amount quarter. comprised technology. million claims timing well was unrestricted of comprised Net comprised of investments strong a result was with $X restricted was to earnings capital out provided This of Net and X noncash for cash provided earnings our activities million for million activities in from $XXX debt cash. used share expenditures quarter $XX we of is $XXX in like million as of and the of primarily cash was the the point to million of cash now and in driven turn $XXX of for in that to as our charges months with comprised would $XXX operating ended million We cash million expected cash exceptionally to This payment. by of of $XX flows. Slide review third XX

of We strong conversion are to XX% months pleased highlight $XXX Frontdoor's ended also the XX. million flow June for EBITDA or extremely cash X free of

to on Now I'll XX capital an where structure. our turning provide update Slide

this strength, has capital ever each in this financial in are the deliver company strongest able We of are position allocation our aspect on been we and to with strategy.

of Let update our me give each priorities. an you on

add the more X-XX we target customers, earnings. quarter, continue revenue fourth closing and #X is priority and Our grow to more the acquisition in will which more

is objective solid we second a to Our profile. financial ensure have

the to repurchase third return to our to brings second net of range getting X.Xx, million Our closes. targeted at leverage than $XX is repurchase acquisition objective July, used X-XX quarter. less our we ratio anticipate end since Xx shareholders. which to to our million And Year-to-date total in This million our XXXX. was the through is below cash $XXX shares. This share Xx million X.X we to the end after of we of $XXX the initiated well finally, back program

we just X, than authorization. Board our is a amount repurchase million earlier, fortunate share ability on shareholder starts said where position time. of to I repurchase are at in largest substantial increase the time dramatically deliver shares company's the will can the our both value we same XXXX. are approved higher $XXX XX% This we X-year authorization that September be our history summary, Bill acquisition actions to in current as these Additionally, completing believe new In over and X-year a

through year to our XXXX third Now I quarter XX turning will outlook. Slide full where walk and

BXC a revenue. approximately our million, quarter both over our in renewal $XXX reflects increase and real and mid-single-digit which in $XX estate decline in XX% revenue million expect our an of to slightly between other We third million and channels a be increase channel, $XXX

is at up $X range EBITDA adjusted $XXX to about year prior million, over between million midpoint. quarter and $XXX million Third the expected period the

XX% realized range mid-single-digit outlook Now also $XXX a decline revenue, will price turning million. $X.XX assumes approximately in volume. HVAC where is renewal new to in mid-single-digit and revenue increase mid-single-digit our real XX% entirely in to driven DTC at XXXX billion, our and we starting decline sales. to assumes includes a It which $X.XX with offset roughly almost This increase both by higher estate the partially a full year a in by are other now approximately billion maintaining increase This the realized channel. channel

expecting warranties now X% XXXX. are in ] of decline to X% number the We [ home to

our to profit call turning half I gross Now margin want outlook. to gross XX%. out first margin our was that

low year realized of lower However, and gross for the we gross duration effect the the expect contributions normal requests profit margin in net is profit that our finally, raising see The lower expected increase above reasons: inflation of to is balance per XX%. in of half the to the and be we full number year to from customer margin outlook for the service price trade are fees, service XXXX. for an second slightly following single-digit be of the year

million costs SG&A million investment adjusted to includes $XXX our year customer EBITDA adjusted is million. We growth which between also to and increasing are an acquisition, million to excluded retention year full to of $XX $XXX organic an between related are initiatives. be EBITDA. Based from and closing drive million our to for range additional be these million account $XX updated increasing $XXX on $XXX and inputs, estimated This range full X-XX the transaction we

our rate consistently deliver and financial conclusion, and to and be approximately between of $XX expect million. Our full interest of year expenditures And outlook million to strong capital million we effective expense also full year tax results operating income range stock $XX we well. XX%. $XX In exceptionally and finally, the compensation is our million includes business $XX reflects annual approximately to continue

XX, for back over like Investor call about on the you the which can it team the of acquisition change important X-XX, come are and I a Day turn Day we at integration February the to tell our felt synergy in After combined I and Investor of we was the to more we will delivering to I date, you back turn call moving details balance Bill, more now announced on to Before we the on focus XXXX. over planning Bill. would then to business. With XXXX to that, share to

earlier what realism optimism. want and I re-emphasize about said Jessica. I long-term to Thanks, near-term

done X for strategic taken our the While the the fronts, position realism acquisition the optimism accelerate of the long-term on long to eventual company our with and do. seeing warranties said real We're several we we positive the and we X-XX haul. We've years, near-term have to actions Home growth positioned our momentum estate DTC we challenges sales for strong would team past We've proceeding. the decisive real about the home in explored face channel. is estate over Shield We brand. and turnaround is M&A our relaunch American of of the what

We rates. retention drive customer continue to higher

our Our partnership potential. showing HVAC is doing is Moen on-demand with and well business tremendous exceptionally

Over and profile. the past our margins confident we stabilized XX in months, our remain we have margin long-term

Finally, previous excess XX% our to increase authorization, new share authorization. shareholders over $XXX as buybacks we continue our share demonstrated a is by cash return through million which repurchase to

slide reflect that As of the you optimistic can see, about to doesn't July. be of point. updated our data But through and in final on future lot continue our news my that's valuation has we into been slide so these We have facts great business. showed The the this and I leads a end February. of the why

take to has and However, are we simple, Xx declined ready remains as The stock your today. I undervalued. With of significantly here just actually Operator? account now is our Jessica into message multiple taking that, questions. to provided, our the guidance

comes first Schmitt [Operator from Instructions] William Jeff question today with Our Blair.

that more I going refresh route past. discounting on know your that But Are of than Could maybe next why does of mentioned and well? focus if update the look? kind kind us said could you as broad you've how competitive you on environment discounting in pricing taking you're us the they the on over an to strategy cuts, you price you're year? give

me split renewal into pricing. let and So DTC-X ] this then [

we're pricing, renewal going be the to with consistent. So

past pricing We couple done only done to discount. members, to DTC-X, we pleased action tool as we've at increase, a there on on basis with as but in they renewals. the an in price use will the competitive an new and, of a but being level faced years. But discounts be be new On will able a will we when targeted are not renew a have the said, not we by we've work to aggressive grow are terms people very time-bounded of that either

more be added right So at think historic going of customer. a more elastic We're doing the almost think is that now more of the this. reflects pricing renewal is And the I think user we've to more renewals. it's going way and new have I inelastic for we're talked with user piece about our to I and looking what

drove makes And it's that ton direct then it the for broad I for a decline trends? pricing of year Yes, you XX%. discuss tough just strategy a full your Is there growth needle an or Could of maybe just environment you to that? Okay. tough guess to industry sense. outlook move the what lowered too

Yes.

Bill his just entered real of rebound are think hasn't. and year mean I at estate end expecting spending it and they're to simply interest this We script. in markets day the cuts the less. it the I stressed, consumers hit

reflect current to the So adjusting macro. are we

who a data based California all there's California. I you we category Department we've one the about realism. is are declined. down. to than Insurance, national looks nothing this providers all brag better in they we're data the because from think, the performing we over while grinded at We And I of are, The lot. about Jeff, talked said when showed near-term which

the think tough, to is of as So slow that. category and really said, it's home macro; Jessica affecting the but continues estate warranty real overhang be specific I a

comes Sergio Segura question with next KeyBanc. from Our

more. a into partnership hoping was dive little could you I the Moen bit

envision strategic an Any the partnerships this guess be more would taking a future? big I thoughts and helpful. the this a on step do you business? of that how back of for And priority opportunity like Just is a being bigger in taking view, picture

the on numbers not to Moen. share We're ready

X strong terrific for other directly with Insurance contractor We members,X.X to a proven start look to a logically and this that. of we're approaches also systems leveraging contractors consumer. got and a And this if a the which Farmers really is is it's very just side. has and they California, have a take We've looking with are terrific that things. off of lot to core different of to thrilled Moen this so go partner want end that's our think company, even million, think are X it's of the of ways be to nonwarranty to wallet at us in as And grow we this states. is with about fast lot But of to to opportunity expand capabilities business I a point think user plumbing of we be business base we have, type I of but doing of X of do the Shield it excited network where share on-demand trying in to indication this our the opportunity we the as an American have why on-demand Home lot or can really expand into ability reach we million that their then life. I

Anything interesting the relaunched the curious would call coming helpful maybe since the second American really helpful. funnel there the it. your to customers And that into breakdown Shield sales see. you any you be presentation, very and for was thought Thanks Home base? types out the I I'm customer compared brand, have demographic Got in to seen of a existing question. differences to in

But is don't lower more. what I an I person's into or resonating brand. to income are the want the say old a indicated as not wanted That's we brand demographic to specifics. go data, this in we just

We logo, I new are stuff we're really in pleased the folks the we seeing the the new advertising visits of tagline, did coming relaunch; and look, through. the the And website, which the a broad-based new the increase with to website. group with think the

the pleased case. right relaunch sure in started time. this and in going they But group a take direction So consumer and how are has indicators you're it's your is do long-term a we're make looking relaunches the are been what play there. broad-based and They're certainly to with

Our from next with comes question Maxwell Truist. Fritscher

from Mark I wondering on what I'm to on-demand for or other contribution the margin the broadly this more quarter? was channel HVAC the Hughes. was the

over we about increase there said from So HVAC. was year coming prior $XX million

bright we So be as program. really again to expand continue outperforming for us and it a spot just continues the to

Yes.

margin I we're your going to into the question, contribution think to go not specifically.

We have it's a it but to home that matter a right warranty than piece, indicate us indicated going now, margin And the to a certainly P&L. together of much. all not all it's lower how how exactly we're comes as total

continued? it. And customers. the it service warmer HVAC weather Understood. that your to as requests due the the a in then of had mentioned Got quarter has similar Is you XQ seeing that geography down in were trend you're thus seems far

there's think reasons. couple a of I Well,

a as So I they service for an fees that near filing change with request. a the thoughtful where little change incidents just impact service term in the to There about just lower behavior a customer think trade more in said. be bit was I drives may

we're thing is that the into other really of the new the happening. also impact think HVAC program is I guiding

impact I think HVAC I at bit down. had the as overall I the really days quarter. little because a of largest right, sale. think incidents scratching, is us, the for year-over-year, But incidents that incidents increase new This the as it's looked definitely new think that about overall but probably into the for It was a were we is impact degree service on yet head including drivers the our HVAC transitioning digging program request HVAC we're well as combination new into a the a still that. having

but dig So into. some good benefits something we for us in to quarter, definitely continue the

year. going not but guidance suffice that We're QX in we for the gave the it's all go full into say specifically, to to

comes Pfeiffer question with from Daniel next Our JPMorgan.

have first, And huge I of a more lead the HVAC could on-demand been might category want follow-up. which success. But have wondering if to color upgrades within you obviously any then into I'm For a give you outside expectations partnerships? for on

We're partnership. a partnerships Moen not then ready team we the work and with of are suffice and other is talk but lot interest the at corporate to is alternatives, success area that through getting second hard our Obviously Moen, our I with think staying folks. HVAC say from to

part So executing on partner, because this really with our but the contractor decide can execute with And that's work only we work do is it? really deploy we for not group jumped to is to Moen early has and what we network our success been contractors? want plumbing our Can a of beautifully.

expectations can marketing little your pull the sense weakness? you. consumer to makes talk Got year remainder it and And headwinds of for about a then maybe maybe the spend for macro the for given the back you and second, whether

to at demand to actually drive more we yes, the were looking looking grow. the initiatives. We're have think hammer the prudent we an use we're down. We $XX it. we're spend taking I'll I all and to money is. to opportunities. relaunched just continue direction, the strength, thinking opposite keep have think We the try and we to into think there in make, incremental the figuring here way. -- we're other the I It's think want million so to again, prudent we is which -- it still our to we're that mean talk, But want way go we to try brand deploy the brand. retention in Jessica's We're we in want drive into going world. out are best indicated going momentum I to word what want I But because to I great to investments. to not we

Isaac from is Oppenheimer. Sellhausen question next our And with

target. profit on first is gross quarter. Congrats Isaac the for This Ian. on on a strong margin is My

moderate you're that the of sort will you margins these make you go anything margins over I long term? higher the business initiatives as the few margins, the that second in changed margins exceeding But year new there Now structural know in pre-COVID monetize for that Frontdoor the could over reasons. app, of would term? half is a sustainable longer the is the like mentioned

to continue just kind our upper about No, we've I to XX%. long-term to I want which talk think focus, guided of

about they warranty talk specifically, traditional lower to really on-demand to, but margins alluded As business. are ready Bill than home we're the not

the think incorporates balance that it's anticipate demand. we as profile continue what upper XX%s, grow we to margin long-term on again we think really which as that about I So is, the

acquisition. Okay. warranties and the quick large others home within how compare Understood. to How business HS? on a the does the space And is that it traditional one maybe then just X-XX in in

Stay year-to-date is tuned in X-XX terms million revenue $XXX gave is and for broad their they around on that, number Isaac. $XX around of We their of around the million. customers XXX,XXX, EBITDA have numbers the

combine while yet want the We the disclosed why have back pushed meeting Right get it. way as Day. That's into X X-XX. a we to companies with we're or come We and and now companies. Investor reasons look Organization full operate going at you like of to that, we independent like to business really plans not can't we're have that. things the with to structure we anything

go that great for after us saw as So our made And that we value-added come. decide in a I be going this said, there. put this to is more investment, to acquisition the shareholders. to make But I we think indicators enough to together model obviously

Thank you.

We have no further questions.

this joining. for concludes Thank today's call. So you

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