Ladies and gentlemen, thank you for standing by. Welcome to Best Buy’s Fiscal Year 2020 Fourth Quarter Earnings Call. At this time, all participants are in a listen-only mode. Later, we will conduct a question-and-answer session. [Operator Instructions] As a reminder, this call is being recorded for playback and will be available by approximately 11 a.m. Eastern Time today. [Operator Instructions] I’ll now turn the conference over to Mollie O’Brien, Vice President of Investor Relations. Ma’am, please go ahead. Mollie O’Brien: Thank you, and good morning, everyone. Joining me on the call today are Corie Barry, our CEO; Matt Bilunas, our CFO; and Mike Mohan, our President and COO. During the call today, we will be discussing both GAAP and non-GAAP financial measures. A reconciliation of these non-GAAP financial measures to the most directly comparable GAAP financial measures and an explanation of why these non-GAAP financial measures are useful can be found in this morning’s earnings release, which is available on our website investors.bestbuy.com. Some of the statements we will make today are considered forward-looking within the meaning of the Private Securities Litigation Reform Act of 1995. These statements may address the financial conditions, business initiatives, growth plans, investments and expected performance of the company and are subject to risks and uncertainties that could cause actual results to differ materially from such forward-looking statements. Please refer to the company’s current earnings release and our most recent 10-K for more information on these risks and uncertainties. The company undertakes no obligation to update or revise any forward-looking statements to reflect events or circumstances that may arise after the date of this call. I will now turn the call over to Corie.

Good morning, everyone, and thank you for joining us. Today we are excited to report strong Q4 results with revenue of $15.2 billion and non-GAAP earnings per share of $2.90. Our enterprise comparable sales growth for the quarter was 3.2% above the high end of our guidance range and on top of 3% last year. We are posting our 12th straight quarter of comparable sales growth and showing our strength as a successful multi-channel retailer who can meet customers when and where they want. We offered compelling holiday deals that resonated with customers and provided a seamless shopping experience, great inventory availability and fast free delivery. Across online home and stores, we are fulfilling our purpose to help enrich people's lives with technology, while also helping technology companies commercialize their products innovation. Our domestic segment comparable sales were up 3.4%. From a product category standpoint, the comp growth was driven by strength in headphones, computing, appliances, mobile phones and tablets, partially offset by gains. We also saw continued growth from our transformative initiatives, like total tech support and in-home consultation. The enterprise Q4 non-GAAP operating income rate of 6.5% was better than we expected due to lower SG&A expense. On the gross profit rate line, the mix of products we sold in the quarter drove a lower rate than we anticipated. For the full year, we grew enterprise comparable sales to 2.1%, expanded our non-GAAP operating income rate 30 basis points and increased our non-GAAP earnings per share of 14% to $6. 07. We also returned $1.5 billion to our shareholders through dividends and share repurchases. In summary, we are proud of these results and I want to thank all of our associates for their hard work, commitment to serving customers, and amazing execution as we navigated ever increasing customer…

Good morning. Before I talk about our fourth quarter results versus last year, I would like to talk about them versus the expectations we shared with you last quarter. On enterprise revenue of $15.2 we delivered non-GAAP diluted earnings per share $2.90 both of which exceeded our expectations. We had better than expected revenue results both online and within our International business. From a category perspective, we saw stronger than expected performance from computing and headphones, whereas gaming and smart home were a bit softer compared to our previous estimates. As Corie mentioned, our non-GAAP operating income rate also exceeded the high end of our expectations for the quarter. The higher operating income rate was driven by lower SG&A, which was primarily the result of lower than expected incentive compensation expense and strong expense management. This was partially offset by a lower than expected gross profit rate. I will share additional details on the gross profit rate drivers later in my prepared remarks. The favourability - the favorable earnings per share results versus our guidance also included a net $0.03 per share benefit from a lower effective tax rate that was partially offset by a higher share count. I will now talk about our fourth quarter results versus last year. Enterprise revenue increased 2.7% to $15.2 billion, primarily due to the comparable sales increase of 3.2%. Enterprise non-GAAP diluted EPS increased $0.18 or 7% to $2.90. This increase was driven by a $0.12 per share benefit from the net share count change and a $0.06 per share benefit from a lower effective tax rate. In our Domestic segment, revenue increased 2.6% to $13.85 billion. The comparable sales increase of 3.4% was partially offset by the loss of revenue from store closures in the past year. From a merchandising perspective, the…

Thank you. [Operator Instructions] Our first question will come from Peter Keith with Piper Sandler.

Hi, good morning. Thanks for taking the question. I just want to ask on the full year guidance, so it looks like at the midpoint you're guiding to about 2% earnings growth which is a little bit below last year's initial range and also below kind of the long term CAGR to 2025 of about 4% percent before buyback. So I would assume there's some coronavirus impact to the numbers, but could you just kind of frame up why the overall earnings growth is a little bit below maybe normalized run rate?

Sure. This is Matt. I'll start with that. First, as [Technical Difficulty] remarks, believe we're operating in a very positive consumer environment similar to last year, all the data points indicate a good consumer unemployment is good, wage growth is good, consumer spending is good and wage forecast. That being said, separately there is some supply chain related issues as a result of the coronavirus. So on the low end of our guide we would assume that there is a material disruption - supply chain disruption from that, and we – and that we can't make it all up in the year. So that's one reason, as we said we did factor in the coronavirus outbreak into the overall guidance and the range. We're still very positive about of number of initiatives that we have, such as IHA and TTS growth. There are certain categories that we still expect to perform strongly next year, such as appliances and headphones. Like I said total tech support is still an area of growth for us next year. Gaming would be an area where we are expecting it to be down on a year-over-year basis as well. We do expect to see new console launches in holiday period next year, but the first three quarters will be down or we expect to be down. And then we still have moderate assumptions for TV and mobile phones to the extent that there is better adoption, some of those new technologies like 5G and 8K then that could help move us up towards that range. So to your earlier point, yes we did try to factor in the coronavirus outbreak into the overall year end and that did have some impact to the overall guidance.

Okay. Thanks. And maybe quick follow on, is there way to think about the impact of coronavirus on first half of the year, maybe from a comp sales perspective, understanding that and it might be wrong, but would be helpful and how much is factored in at this point?

So - Peter this is Corie. I think trying to size perfectly the coronavirus impact at this point is incredibly difficult. I think you as much as anyone would respect it, it's incredibly fluid situation. We are trying to for Q1 and the full year estimate as best we can the impact, mainly in the form of lower sales volume, as you could imagine and we literally so far have gone vendor-by-vendor to analyze the size of the impact. But it is complicated and very difficult to size. And we're trying to weigh things like which factories are back up and running and they're all at varying capacities across Asia. Even if the product isn't final produced in Asia, some people are waiting for components that may flow from there. There are varying levels of safety stock across the industry and global vendors have varying levels of global inventory and then obviously estimating the transportation situation once the production comes back it is also difficult. And so based on what we know today, we're assuming the majority of the impact is in the first half and we do view it as a relatively short term disruption that doesn't impact our longer term strategy. But obviously right now we are isolating our approach to the supply chain impacts. And as Matt said, we're assuming the consumer continues on a relatively good pace. So there's still a lot for us to learn there, which means sizing it perfectly just doesn't seem appropriate at this point.

Okay, fair enough. That's helpful. And thank you very much.

Thank you.

Thank you. Our next question comes from Simeon Gutman with Morgan Stanley.

Hi. This is Josh on for Simeon. Thanks for taking our questions. The complexion of your margin guidance is a little bit different from the recent past. What are you doing to stabilize gross margins when some of the headwinds like tariffs appear to be rising and their internal or external factors responsible for the reversal on SG&A leverage that you've seen over the past few years?

Sure, as it relates to gross profit in Q4 I think the implied guidance going into the quarter - excuse me, assumed about 60 to 70 basis points of pressure. What we saw in the quarter largely played out with what we expected in the same areas. As a reminder what we said was one of the buckets was unfavorable sales mix of products and vendor mix was part of that. Services pressure was another aspect to the pressure we saw going into the quarter. And then as well we factored in tariffs on imported goods from China, largely those all still played out. What we did see was a little bit more pressure on the sales and vendor mix than we expected. During the quarter, we made a point to meet the market in a few key categories, we weren't leading the market from a promotional perspective. In those categories, the customer demand was very high, even higher than we probably even expected going into it and the mix so that had a negative impact on margins. So we don't believe that we wouldn't characterize it as irrational or overly promotional, more or more or less just meeting the customer demand in a very thoughtful way. And if you step back and look at the entire year, the full year gross profit was down 20 basis points. Q4 was of - most of that decreased. And as we said next year we're expecting gross margin rates to be flat. So we do believe that pressure will start to stabilize next year. Now we're not going to guide every quarter and we don't expect it all be the same. But from a full year perspective we do expect some of that to stabilize through the next year.

And, sorry…

I think some of our - I'm sorry, go forward in nature for next year and the reason we think they stabilized a bit more, there's a couple of things. One, while tariffs had some impact on Q4 for the next year we would expect there to be very minimal impact over the years. The teams work through their own efforts to mitigate. And obviously that gets a little hard to measure along with the coronavirus impact. But we feel like the teams are very well positioned to mitigate the vast majority of the tariff impact for the next two year. So that's part of what changes the trajectory of that margin pressure as we head into next year, as well more of a stabilization of the services business as Matt talked about, as we lap all of the changes to the total tech support curve and all those things, next year, you have a bit of a stabilization there as well. In terms of your SGA leverage question, I think we would characterize that as two things, one, Matt mentioned the incentive comp implications over the last year and we are pretty specific about that. And then two, the cost reduction and efficiencies work that the team has done, at least the portions of that also flows through SG&A and that's a bit of where we're also picking up some of that leverage.

Right. Thank you.

Thank you. Our next question comes from Brian Nagel with Oppenheimer.

Good morning. Thanks for taking my question. So I apologize just for each one hitting on the coronavirus issue, its obviously topical. I mean, clearly as you've mentioned it's fluid. But I guess the question I have is, as you start to try to contemplate what impacts this could have on 2020 trends, could you help us understand what you're seeing if anything right now or are you seeing indications of supply chain disruptions at the moment or are they coming in the very near future? Thank you.

Hey, Brian. This is Mike. Thanks for the question. When we do all of our product forecasts on department [ph] selection process, as we have full visibility to what's coming into the country through a variety of sources from our top vendors, including the things we source directly. So what we're trying to infer in our guidance, I think, you see is there is a handful of issues around some items that are going to either be delayed or we have some constraints that add full transparency at [Technical Difficulty] we’re not also speculating is any delayed launches of technology. And so I think about this a little bit how we thought about tariffs last year. You know, the U.S. market is the most important consumer electronics market in the world and we're a very significant part of that. And so when we think about high value goods and new technology and where consumer demand is everything gets prioritized for this part of the world. And I don't think that's going to change when things are back running at full speed and our partners want to work with Best Buy just like we're making sure everything we can do to help them during this trying time is in play. That's part of the best visibility I can give you right now.

That's really helpful. Thank you. And then if I could just slip one quick follow up then. As we look at the fourth quarter gross margin and you called out a number of kind of transitory or unique factors that contributed to that decline. But is there a way you could parse it out more, just so we can understand the true margin performance of the business as we take into consideration guidance for flat margins here in the next year?

Sure. I think as we went into the quarter, we gave - I gave you the big buckets of where the pressure was. It was the product mix sales and vendor mix and then services category, as well as tariffs. Last time we spoke, we did go to indicate that most of those buckets kind of equally weighted. And again we implied this guidance to be down about 60 to 70 basis points. So you know, you can do the math there. As we went through the quarter, we also - as we just said a second ago, we did see a little bit more pressure on the mix for products and vendor mix, so that would make that a little bit more of the increase from where we expected it to be. If that helps?

That's very helpful. Thank you.

Thank you. Our next question comes from Anthony Chukumba with Loop Capital Markets.

Good morning. I actually will not be asking a coronavirus related question. I actually wanted to talk a little about rent-to-own. I guess, I have two questions. First off is, you know, was offering rent-to-own financing a significant contributor to the domestic comp performance? And then the second question, you know, you mentioned, it sounds like you're going to be maybe advertising a bit more aggressively. You also mentioned having it online in the third quarter. I just wondered if you can just give us a little more color in terms of on the advertising piece in terms of what your plans are there for rent-to-own. Thank you.

So, good morning, Anthony. I'll start with the significant question. [Technical Difficulty] is definitely having a bit of a positive impact, but it is still relatively small in the scheme of things. And so it's not - I would not characterize it as significant to the nature of your question. Second in terms of advertising more or going online, we definitely think that having this as a digital offering is important, just giving the way we're seeing our customers shop, we want to be able to have this as an option online. So yes, you'll see that in Q3. From an advertising and marketing perspective, we've been doing some regional testing on that. I wouldn't expect to see it go full scale, put a ton of muscle behind a big marketing or advertising campaign. I think we feel right now this is mainly a referral process. As we've talked about before, we tend to start customers with our own branded private label card. And if for any reason they are aren’t unable to qualify for that then we move on to the lease to own option. And so I think it's a little bit less about a large scale advertising effort. And we continue to see it as a nice secondary option. And look financing and purchasing is all about different purchase options and that's what we feel like we can provide you.

That's very helpful. Thank you.

Thank you. Our next question comes from Michael Lasser with UBS.

Good morning. Thanks for taking my question. We want to focus on either the aggressiveness or the conservative nature of the gross margin expectation for ‘20 - fiscal 2021. So can you give us a sense for the cadence of gross margin over the course of the year, do you expect to be down in the front half and up in the back half? And what would have to go right for it to be better than that and what would have to be go wrong for it to be worse than that. And the question comes just on the heels of you missing your gross margin expectation in the fourth quarter because of mix.

Yeah. Thank you. In terms of next year's gross profit rate, I would characterize, again the year we're expecting it to be flat and we outlined a little bit of the puts and takes there, I think from a benefit perspective we expect to see continued growth in our health business. And as Corie mentioned, continued cost reduction efficiencies helping us on the margin rate. On the under pressure side, what we will see a little bit pressure on the supply chain as we move bigger products through our supply chain system and we'll see a little bit of pressure there too. Tariffs will be a little of an impact, but again not a material impact next year. And services when you take out health, will be a little bit of a pressure next year, again as we're moving more light products. So those are kind of the major things that are benefiting and putting a little pressure on it. We're not going to get exact quarter guidance, things aren't always going to be the same in every quarter. But I wouldn't expect that any quarter to be much different than that - that basic makeup, meaning one materially down versus the other, at least as far as we can see right now, we do expect it to stabilize for most of the year and we will - some of that pressure we saw this Q4 we would expect to lap as we look into next year.

If I can also add one clarifying question. Have you only assumed supply chain disruptions in your guidance. How long do you assume those will persist? And have you assumed anything about changes in behavior - consumer behavior because of all the headlines we're seeing?

Right now we have isolated it to supply chain disruption, because literally every consumer indicator and every more macro forecast that we can get our hands on right now would say you continue to see growth in the consumer and for us to predict exactly how the consumer is going to react, given how quickly this is evolving and changing every day, didn't seem prudent.

Thank you very much.

Thank you. Our next question comes from Steve Forbes with Guggenheim Securities.

Good morning. Maybe you've just given all the near-term noise here with the virus. I kind of want to step back and revisit the 5% long term EBIT margin target, right, given the achievement of that level in the U.S. segment this year. So if you can maybe just discuss how the expectation breaks down on a segment basis, right, as we look out and if possible provide some directional color around the EBIT margin structure for 2020, 2021 on a segment basis?

Sure. So overall I think as we tried to achieve or as we look achieve the 5% goal in FY ’2025, I think we've always talked about the path that, that wasn't going to exactly be linear. We did achieve a pretty high operating income rate end of the year. A chunk of that was actually due to the short term incentive favourability that we had. So as we look at next year and the years out, we still expect health to be a good contributor to that expansion of OI rate. Internationally, I would say more of the same, probably operating income rate more stabilized over that period of time. Domestic is where we'll probably see more of the expansion, as we look into FY ’25 from a segment perspective.

Thank you.

Thank you. Our next question comes from Kate McShane with Goldman Sachs.

Hi, good morning. Thanks for taking my question. I wondered if I could talk about the holiday season, just how did you manage the 6 fewer days. And did you see any change in pattern or demand as a result? And just from a promotional standpoint with promotions coming earlier is that something that impacted gross margins during the quarter?

So I'll start and Mike can add anything he would like to. I think one of the things we're most proud of in terms of Q4 is that it really felt like our investments and our digital experiences and our supply chain were really paying off. And I would definitely extend kudos to our merchandising and marketing team who just did a great job, hitting promotions early in the holidays and ensuring that we had a really consistent plan throughout the holiday season. We said in our last call when we guided, we felt like the number of days was not nearly as large an impact as this year as it had been in the past. Meaning, because there are so many ways in which you can get product fulfilled and how we felt about our strength with next day, same day and particularly in-store pickup, which we said was 42% of what we sold online. We had a really unique ability to offer customers what they wanted on the terms that they wanted it. And so I think this was a period where we really felt like we could see the investments that we had chosen to make up to this point shine. Mike, I don't know if you have anything else you want to add.

I would just thanks Corie. Kate, I would just reinforce the efforts that we talked about at the investor event in September, really thinking about customer experience around fulfillment and what the role Best Buy could play you know, more on a long term basis. We knew the environment would be different than we've historically thought about the timeframe broader than just the days between Thanksgiving and Christmas and being able to deliver things that consumers wanted, when they want it and where did it played out well for us. And I think that's a big part of our strategy going forward.

Okay. Thank you. And just one follow up, an unrelated question. I think you talked about the decline in warranty growth during the quarter. But within the guidance for services for 2020, it sounds like you said it would be up mid single digits. So I just wanted to know what the view is on warranties within that guidance or will the majority of growth be from the total tech support?

Yeah. Thank you for the question. Next year total tech support will drive most of our service growth next year. I think in Q4 we did see a bit of a lower warranty revenue. Maybe if you think about the mix of products we sold and heavier online mix as well those tend to put a little bit pressure on the warranty revenue which we saw in Q4. Next year we believe that stabilizes a bit and – but most of that growth we're going to see next year is on the total tech support side.

Thank you.

Thank you.

Thank you. Our next question comes from Mike Baker with Nomura.

Great, thanks. A couple of follow ups. In fact, I'll follow up right on the services question. So mid single digit from total tech support yet you have 2.3 million people signed up now and I think a year ago it was like a million. So that’s like a double. So I guess why wouldn't that be growing more than mid single digit? That's one question. The second follow up is on incentive comp, you said 10 basis points it helped relative to your plan for the year and you'd already been planning it down in that 10 basis points if it was mostly in the fourth quarter, is like 30 basis points for the quarter. I guess, the two questions there is, one, in such a short amount time, how could have been so much better than plan, especially with the fourth quarter being a pretty strong quarter. Why would it have come in so much lower than planned? And in total how much did it help year-over-year, not just relative to plan? Thank you.

So the TTS, the total tech support side and the growth that we're driving there, we're actually seeing that grow and I think what you have to remember is this is one of those recurring revenue businesses that's going to pay back over time. There is growth there. On the flip side, we also plan to invest more in free installation and delivery, which eats away at some of that growth and also shows up in the services line. I think broadly, I would go back to, though, what’s important to us is what we talked about at Investor Day, which is services as is defined in that line on our 10-Q, and then there are services as we think about it, which is a much broader definition and includes things like the membership that we talked about, in-home consultations, like the broad range of things we offer for customers. And so I would absolutely ask you not to just think about services as the revenue that you see there, but as a broader suite of things that we provide for our customers.

Okay. Can I follow up on that? So when I pay the total tech support, which I am a member by the way, it was 199 spread out over a year. Does that does that fall into that services line item?

Yes.

Okay. Thanks. Then on the incentive comp, again how could it have been so much better than plan if the fourth quarter is pretty good. And then what was the plan I guess?

Yeah, as you can imagine every year we set the FDI Based on this year's budget and going into the quarter we had fourth - and then we changed the guidance forecast every quarter during the year. Going into Q4, we simply had a forecast that had us achieving some of those budgeted expectations that are the basis for both our store plans and our corporate plans and by the end of the quarter we said we just didn't get to those budget expectations and hence the better than expected incentive compensation for the quarter.

So presumably they were gross margin plans, rather than sales plan?

We have - the predominance of our plans are both revenue and operating income.

Okay. Thank you. Understood.

Thank you. Our next question comes from Ray Stochel with Consumer Edge Research.

Thanks for taking my question. Could you talk a little bit more about the electronic sign label investment? I think we've seen that in stores. What exactly are you referring to there? How significant is it and how are you thinking about ROI and strategy there?

Hey, Ray. Its Mike. Thanks for the question. Yeah, you're correct. We have rolled out approximate 200 stores in our chain with electronic signs and we've been testing a variety of different ways of doing two things to truly see how to improve the customer experience with more accurate information on the tags, more flexibility on our pricing, which has a significant corollary [ph] benefit of having less people needed to physically change price tags. And as you could imagine in this omni channel world highly promotional timeframes like the end of November to the Christmas selling season we still have a lot of our employee labor dedicated to resetting the store, reprinting tags, heading up bundle promotions. We do a lot of unique things. We needed to really pilot this to understand it couldn't handle all the aspects of pricing for Best Buy because we're far different than a mass retailer or a grocery store. We're very happy with the outcomes that we're seeing and we finalize a program to scale this to the balance of chains. So we see that as a net benefit for us long term both on cost standpoint and employee engagement standpoint and most importantly our customer experience standpoint.

Great, thanks. And then could you give us a sense about - around how toys performed for you all this holiday. It looks like you've grown assortment over the last few years without Toys"R"Us in the market, is this a meaningful business for you all now. And are you seeing any of the overhangs that other retailers discussed? Thanks.

We are growing the toy assortment right, but it is not a meaningful business for us. And I don't think it will be. We look at toys as nice color to our gaming business and traditional gaming has been down, computing gaming is up significantly and we're always trying to find ways to meet our customers where they are from our shopping experience and we'll continue to do that. But it's not a very large part of our business today. I don't see it being that in the future.

I think the wonderful thing is the vast majority of our assortment is now been in toys by kids. When you think about iPad, when you think about computing gaming, I mean, toys for us such a bigger answer because of the way kids are growing up today what they value in life. So it's not just about the toys open for us, it's about being positioned right at holiday to finish the list, like Mike said.

Great. Thanks, again.

Thank you. Our next question comes from Scott Mushkin with R5 Capital.

Thanks, guys. I think I wanted to touch on just the kind of the cadence of new technology coming to market. I know Corie you kind of outlined some of the things in the next couple of years. But I know there's been some thoughts with 5G will really be a 2021 event and that the 8K TV cycle might disappoint a little bit. So I was just trying to get your view on kind of the cadence of new technology coming to market?

Scott, I'll start and Corie could definitely chime in. I mean, we're always excited about what technology has given, the role we play. I think it's both, it's a short term and a long term game. What I mean by that is short term there's a lot of noise out there around what 5G is or isn't from the mobile networks or consolidation that likely is going to occur and that's just going to create confusion for consumers, when that happens, I think Best Buy plays a significant role. There's an advantage with a 5G network will do today, but we're just starting to scratch the surface on what it will do longer term when I think about it from an overall standpoint of being connected both mobile and in your home. I think Best Buy's position is – we’re excited about it. We're going to continue to lead it innovation that’s currently helping consumers to understand what it can do. And it will drive some demand on the mobile sector regardless because of the new devices that come out that people want to understand. The second question on 8K TV, I think the technology well - it's interesting what it does, what it really does it enables customers to get a better quality, larger television set and that is one of the key driving things that we see. When consumers bring something on one of the reasons we actually get TVs returned today, one of the top reasons that they didn't buy it, as big of a TV as they thought they should have, even though they had the space and the better the TV can look with 8K resolution, it helps easier to have that conversation with the consumer and get them what they really So we see as a driver for large screen TV and that's been a significant part of the business segment to date and I think it will continue to drive going forward.

And the only thing I would add to what Mike said is that, when it relates to 5G I think we have a really unique advantage here. When we think about our very localized market based strategy and combined with our ability to commercialize new products which will be coming over the next, to your point, multitude of years, we can help customers because it's going to be market by market and it's going to be confusing for customers because at some point we'll be available some it won’t. And this is where I think our market strategy and our ability to commercialize technology really will show up over a multitude of years here. And with that, go ahead…

No I was just going to because no one touched on it yet, I just wanted a quick thought on the health care initiatives and what kind of pushback you get from healthcare providers. I know it's right at the end, but I was just wondering if you can give us color there? Thanks.

Yeah, I think – and you're probably mainly referring to the commercial side of the business which is where we're working on some partner - with providers. I think it's less about pushback and it's more about how do we collectively move it. It's very new, it's very different, actually everyone is very interested in health care in the home. There isn't a partner we talk to is not interested. It's a question of how do you fit it into the existing reimbursement methodologies, existing system, existing way we think about care and how do you provide enough room for test and pilot at a small level, so we can learn enough that it makes it worthwhile to roll out on a larger scale. So it's not - it's not actually pushback. There's a lot of interest. It's a question of how best do you start a pilot and then scale.

And with that, I think that's the last question. I want to thank you all for joining us today. And we look forward to updating you on our next call in May regarding our Q1 results. Have a great day.

Thank you. Ladies and gentlemen, this concludes today's teleconference. You may now disconnect.