Good evening. My name is Rishey, and I’ll be your conference operator today. At this time, I would like to welcome everyone to the 8x8, Inc. Fiscal Second Quarter 2020 Earnings Conference Call.I will now turn the call over to Victoria Hyde-Dunn, Head of Investor Relations.

Thank you. Good afternoon, and welcome to 8x8’s second quarter fiscal 2020 earnings conference call. Joining me today are Vik Verma, Chief Executive Officer; and Steven Gatoff, Chief Financial Officer. During today’s call, Vik will begin with business highlights of our second quarter performance. Following this, Steven will provide details on our financial results and guidance. After these prepared remarks, we look forward to taking your questions.Before we get started, just a reminder that our discussion today includes forward-looking statements about 8x8’s future business, product and growth strategies that are pursuant to the Safe Harbor provision of the Private Securities Litigation Reform Act of 1995. We caution you not to put undue reliance on these forward-looking statements as they involve risks and uncertainties that may cause actual results to vary materially from the forward-looking statements as described in our risk factors and our reports filed with the SEC. Any forward-looking statements made on this call reflect our analysis as of today and we have no plans or duty to update them.In addition, some financial measures that will be discussed on this call together with year-over-year comparisons, in some cases, were not prepared in accordance with U.S. Generally Accepted Accounting Principles or GAAP. A reconciliation of non-GAAP measures to the closest comparable GAAP measures is provided with our earnings press release and PowerPoint presentation deck, which are available on our Investor Relations website.With that, let me turn the call over to Vik.

Thank you, Victoria. Good afternoon and thank you for joining us today. We delivered strong second quarter results with service revenue up 28.5% year-over-year, and total revenue up 27.8% year-over-year, exceeding the high end of our financial outlook. These results were driven by our upmarket focus on mid-market and enterprise customers, continued strong channel performance, good early CPaaS contributions, and accelerating traction internationally.These results reflect improved go-to-market execution across our business. We have seen solid growth in both direct and channel pipeline creation, and good execution by our sales teams in all geographies and for customers of all sizes. Our strategy of owning a single, global, cloud technology platform enables us to innovate faster to disrupt four massive markets: unified communications, contact center, video meetings, and now, communications platform as-a-service.Today, I would like to focus my remarks on three topics: bookings performance, competitive environment, and platform innovation. First, total Q2 organic bookings grew 35% year-over-year and reached a new quarterly record. Bookings growth was strong across the board, and our results in mid-market and enterprise were particularly encouraging. Based on these strong bookings and contributions from CPaaS, mid-market ARR grew 53% year-over-year and enterprise ARR grew 83% year-over-year.Contact center bookings represented about a quarter of our total new bookings and grew 41% year-over-year. All geographies had strong bookings growth this quarter, but our UK business was particularly notable with in excess of 100% bookings growth year-over-year. We closed a number of large global deals, including a record 8-figure TCV deal with more than 30,000 seats.A significant contribution to our strong organic bookings performance came from our global channel partners. We had several important channel accomplishments this quarter. Channel bookings grew 80% year-over-year and channel partners were involved in seven of our top 10 deals. We expanded our channel program to…

Thanks, Vik. Good afternoon, everyone. Let me start first by reviewing the financial results for Q2, and then I’ll discuss our outlook for Q3 and the remainder of fiscal 2020. We’ll wrap-up of course by opening the call to your questions.Starting with our Q2 financial results, we executed very well across a number of fronts in a strong demand environment for the 8x8 cloud technology platform. Our differentiated and multi-product growth platform is now bolstered with very-strategic CPaaS capabilities, and is centered around our focus on improving our go-to-market execution, and driving operating efficiencies. All of these elements came together in Q2 and generated solid financial results and a compelling path forward.Total revenue for Q2 grew to $109.5 million, up 27.8% year-over-year. Service revenue came-in at $104.5 million, an increase of 28.5% year-over-year. These top-line results exceeded the high-end of our guidance and were driven by four primary factors: One, strong execution in our go-to-market initiatives, particularly around pipeline generation and continued strength with our channel partners. Two, execution with mid-market and large-enterprise customers. Three, strong organic bookings growth of 35% from our UCaaS and CCaaS business across both new and existing customers. And four, solid contributions from our CPaaS offerings that includes the Wavecell acquisition. This drove execution across geographies, customer sizes, and product offerings. More data-points that our investments in pipeline generation activities and the channel are continuing to take root and drive sequential organic growth.With that, I’d like to briefly address our continued growth in ARR where total ARR came in at $390 million for the September quarter, a solid 34% year-over-year growth. This came from a combination of solid organic growth in our UCaaS and CCaaS business, and contributions from our CPaaS offerings. A meaningful driver of Q2 ARR growth included closing 30 new deals in…

[Operator Instructions] Your first question comes from the line of Meta Marshall with Morgan Stanley.

Hi, team. This is Erik on for Meta. Thanks for taking our question. Maybe just to start you off with a tough one and congrats on the quarter, but just taking a look at gross margins, can you help us better understand what drove the sequential decrease? Whether it was the growth in larger deals or the contribution from CPaaS or just anything that would help us get a better sense of the driver there?

Sure, sure. Thanks. It’s really three things in almost equal measure. One, it was what you said which was the contribution from the CPaaS product offerings have a little bit lower margin profile and the revenue on that piece of the business outperformed a bit more. So we had more of that revenue. Two, we have been offshoring some of our cost structure both in a COGS basis as well as on the OpEx side. And we had a little bit of a delay, probably a 30-day delay on moving some of those offshore. We’ve since done that, but that contributed to a little bit higher cost structure. And then third, you probably saw also that we had some nice growth in product revenue and that comes with a little bit lower margin – gross margin.

Thank you. That’s helpful. And then just on the smaller end, is there anything you’re seeing around kind of increased pricing competition particularly is some newer competitors may be entering the market or is anything we should be mindful there?

Yes and no. So the no part is e-commerce actually, which we launched around July time frame has performed much better than expected. And that’s for the one to nine seats, which is completely self service and completely automated. So you can order provision and get support, et cetera. And it’s completely automated and limited amount of effort involved. And that’s priced in the – I think with 1,299 or so range. So the idea is that I think has given us a huge competitive edge because for us that’s a very attractive entry point because in essence you’re not using any salespeople for that. It’s completely e-commerce. So that’s addressed that lower end of the market. And frankly that drove quite a bit of new logos, which over time upgrading to X series and others that we saw a 20% sequential increase in new logos and e-commerce as a key contributor. And keep in mind it was only on for two months of the quarter.

That’s awesome. Thank you. And congrats again.

Thanks, Meta.

Thank you.

Your next question comes from the line of George Sutton with Craig Hallum.

Thank you. Vik, I wondered if you could walk through the uniqueness of the go-to-market with the Poly and the ScanSource. And I ask it in this context. They obviously have other partners. I actually spoke with a couple of Poly sales people today. They really couldn’t explain what was different. So I’d love you to walk through that if you could?

I highly recommend you reach out to Joe Burton and he was the CEO of Poly and he should be able to explain because he’s very excited about the partnership. So let me kind of address it at a macro level. The macro level is we obviously have had a lot of luck with the agent community and the master subs and we continue to expand and accelerate that. What our learnings is, is that in for the legacy on premise guys, the VARs have a lot of the relationships and frankly, most of the power.ScanSource is Avaya’s – I believe in largest distributor and has approximately 35,000 resellers. And in the neighborhood of 10 million to 20 million seats are controlled through Avaya VARs or through a ScanSource’s VARs who basically sell it buy equipment. So they have all the knowledge of the customers.Poly and ScanSource and us, Poly is going to make a program available through this program called CloudFuel where we will be able to subsidize the move from Avaya phone. Some other folks have basically said they will try and support obsolete Avaya phones. We will be able to basically provide a modern phone and Poly will subsidize that and create a buyback program.Scansource will basically enable and train their VARs to be able to sell a cloud offering and we will have a wholesale relationship with ScanSource and we will train ScanSource which will then go out and train their VARs. The reason this is interesting is it comes down to the fact, as you know, the traditional telco market has been controlled to a large degree by VARs and they’re used to providing value added services to their end user customers. This allows them to sell exactly the way they have been used to selling. And because we have one unified platform, they can start with UCaaS but they can also sell contact center. They can also sell meeting rooms which provides opportunities for value added services and makes them hugely relevant.So for us, we think for a fraction of the investment of anybody else, we’ve gotten to the VARs who control the end users, which as opposed to be original equipment manufacturer, that’s why we think this is such a great deal and it’s been a long time in process.

Great. I wondered if you could also walk through the 30,000 seat deal, which is a significant size deal. How did that come along? How did that migrate from the 1,000 seats? Just wanted a sense of how replicable this is over time?

A key element of our business is land and expand. And one of the key things is we deployed approximately a 1,000 seats primarily in North America and they were very happy with the service and they’ve expanded it globally and it’s about 30,000 seats. It’s a very large company and they’re using this essentially to do a complete transformation of their entire business. We started off essentially with a local office here. Headquarters heard about it, we rolled it out to headquarters, headquarters loved it. They’ve rolled it out everywhere and that was the key.And so it’s – this is the great idea of a SaaS business, but more importantly also the concept of one unified platform. Once you’re able to go and provide one set of services in one geography, you’re able to add additional services and you’re able to add everything from context center to meetings to whatever. And in this particular instance, as I said, we started off with a local office in the U.S. and expanded globally and 30,000 seats is probably the largest initial order we’ve ever had.

That’s a great deal. One thing for Steven if I could. Did you give the Wavecell revenue impact in the quarter?

We haven’t. We didn’t break out that product line consistent with how we don’t break out the others.

Thanks guys.

Thanks.

Your next question comes from the line of Ryan MacWilliams with Stephens Inc.

Hey guys, congrats on the quarter. Just one question from me today. Looks like contact center sales and bookings have been picking up. Is there anything particularly here that resonating either with the channel or with direct sales force?

Yes, two things. So one, I want to emphasize this part. From top to bottom, total bookings, which is not a metric we have traditionally disclosed, but the reason we chose to disclose it is we wanted to give you guys a sense of the core health of the organic business. A 35% growth of the organic business in terms of total bookings – total new bookings and this is from one seat all the way up to 30,000 seats.Second, contact center represented about a quarter of that total bookings and that grew 41%. So what it’s telling you is we were relatively late into the contact center and our contact center has been growing up. What it’s starting to tell you is both as combo deals as well as standalone contact center starting to come into its own and now represents about a quarter of our new bookings and we see that accelerating. I mean it’s obviously growing faster than the overall total bookings of the company.

Great. Thanks for taking my question.

Thanks, Ryan.

The next question comes from the line of Matt VanVliet with Stifel.

Yes. Thank you for taking the question. I guess first I wanted to dig in terms of what the early reaction has been to the new Video Meetings product and how are you going to position that from the go-to-market perspective when it’s more generally available?

Got it. So I’ll break it into two parts. So the meeting solution is initially what we did is we offered it to all of our X series folks as a complimentary basis. And actually it was good reaction there because I think the view is it’s very comparable to the industry leading, it’s high definition. It’s WebRTC, so you can actually enter from a web browser without having to download an app. You have all of the basic, participant control, content sharing, high definition and obviously we are well known for voice. So across the board, the reaction is good.We then rolled it out to all our classic legacy users as well so that everybody had access to meetings. Our initial around middle of November is when we will be launching our standalone meetings product. The standalone meetings initially would be provided free where you literally will be able to get into a website, not even have to register and get involved and start using it. There will be no limits in terms of the meeting duration. And the key goal for us is to drive adoption. That’s the number one goal for us. Remember for us, it’s all about the platform.Meetings is one part of the platform. Meeting then gives us a very logical way for us to upsell, soft phones, voice, contact center, et cetera to that customer base. And then over time, we will continue to add more and more features to meetings and make it as I said, even more valuable. But the part that I think you will find and when you do a comparison between us and all of the various other meeting products and we’ll make sure that you guys have all of this information mid November. You’ll get a sense what we’ve got is very close to the top of the line in the industry.Second part is we’ve also launched an early access to Meeting Rooms. This is conference rooms. And the thing that is unique about us is we are able to leverage essentially commodity hardware. So you can use a TV, you can use an iPad and you can use simple cameras and now you’ve turned yourself into a complete high definition conference room. And you can have these conference room meetings where you can do one touch.We did early access for a few key customers and a limited number of VARs. There has been a lot of excitement about that, particularly amongst the VAR community because they viewed this as an opportunity to go in and create conference rooms for all of their customers where they’ll go in and they’ll install the TV and the cameras, et cetera, and we provide all of the software. So we see big opportunities for adoption there as well. And that one obviously it will be a paid service. So this acquisition we did less than a year ago and it’s been phenomenal for us.

And then turning to the international opportunities, obviously Wavecell opens up a market that maybe you haven’t historically been as penetrated in. Curious if you’re seeing any early traction in terms of selling your platform into the existing Wavecell customers and any or what the pipeline is looking like as you turn to those existing relationships in a cross-sell, upsell opportunity?

That actually as I mentioned in my remarks, we have been actually pleasantly surprised by how quickly there or how much demand has picked up both within the Wavecell install base, which particularly for contact center. And this is why I think there was an earlier question about contact center coming into its own. There is a huge pull for a lot of Wavecell’s customers to add context center because CPaaS and contact center go very well together because in essence it’s a way of customizing your interactions with customers and enhances customer engagement.We’re seeing exactly the same thing happen with some of our largest customers in U.S and UK that have contact center. They actually want the CPaaS added very quickly and to the extent that we are actually accelerating the move of bringing the Wavecell capability into the U.S. and to UK. And as a matter of fact, we will have a few announcements over that over the next few months. But the uptick and the tight integration between our contact center and CPaaS has been much more than we anticipated.

Great. Thank you.

Your next question comes from the line of James Breen with William Blair.

Thanks for taking the question. Can you just talk about – you’ve mentioned that you saw a little better for the CPaaS business this quarter. Wondering what you thought drove that and if you could give any examples of use cases you’re seeing if you’re talking to customers. And additionally within that segment, how does that overlap with some of the other offerings? Thanks.

So I think you were asking for use cases for Wavecell. I mean the – I think it’s more CPaaS. So let’s start talking about some of our larger customers. One of our largest customers does everything from bookings of rental units, et cetera. They want to now use CPaaS capability to go in and do the bookings confirmation and send the alerts as well as information of where the keys are and also they want the ability to know when somebody is geographically clean in a close enough area. So they can go alert the homeowner, et cetera. So that’s the kind of applications what people want. We are – we gave an example today of a major hospitality chain, which is using CPaaS technology to go in and do everything from directions to being able to basically do billing all via mobile phone.And then finally, we’re seeing chat applications for contact center. We’re seeing that people want to integrate contact center to WeChat, WhatsApp, et cetera, and those capabilities is enabled by CPaaS and we’re finding that that is what – and that actually has been an interesting one where chat applications tightly integrated with contact center is how customers want to communicate with contact centers and CPaaS enables that. And U.S. and UK customers are increasingly focusing on WhatsApp and WeChat and other chat applications as a tight integration into the contact center and CPaaS enables that.

And you mentioned the growth in that segment was good in the quarter, maybe a little ahead of your expectations, is it directly from existing customers or some of the new logo?

Yes, so it’s a little bit of everything. It’s a growth from usage of existing customers, adding customers and adding geographies. So it’s really all three.

Great. Thank you.

Yes, sure. Thanks.

Your next question comes from the line of Andrew King with Dougherty & Company. Andrew, your line is open. No response from Andrew’s line. The next question comes from the line of Charlie Erlikh with Baird.

Yes. Hey, guys. Thanks for taking the question and congrats on the quarter. So with that 35% organic bookings growth, which is really excellent and continued strong channel bookings as well. My question is why not raise guidance by more. I mean, it seems like those are really strong numbers and kind of wondering how those play into the guide and what we can expect for those bookings numbers going forward?

Yes. Hey, Charlie. Thanks. So, I mean candidly, we’re very pleased with the quarter. We’re pleased with the trajectory. We like what we’re seeing. And candidly, we’re one quarter out on really growing the CPaaS business organically and inorganically both. And we are just playing it candidly, very thoughtfully and watching as things go and no one wants to get out over their skis and be silly about managing expectations internally or externally.

And I’ll add one more. I mean, as you think about it, I don’t know what your thoughts are, but currency has been quite fascinating because we had this beat this quarter despite some currency fluctuations and you’re seeing all of that happen all over the world. So from that perspective, we feel pretty comfortable with the guidance we have provided.

Fair enough. Thanks, guys.

Yes, thanks.

And your next question comes from the line of Rich Valera with Needham & Company.

Hi, guys.

Hey, Rich.

This is [indiscernible] on for Rich. Thanks for taking my question. Just want to look at contact center a little bit more. So I know last quarter you guys provide the metrics regarding 30% of MME and enterprise bookings were standalone and then standalone CCAAR was up 35%, was wondering, now you gave the 24% of total bookings metric for this quarter. But I was wondering if you could provide any additional contacts there and then yes, we’ll start there I guess.

Yes. So I mean the point I would make is strength across the board. I mean the reason we provided, if you think about it midmarket and enterprise bookings is approximately, I can’t remember 60 odd percent of our bookings. We said contact center this quarter was approximately 25% a quarter of our total bookings. Contact center is now starting to permeate every segment of the market, all geographies. That’s great news for us because that basically says that that one platform that we are coming up with applies to every segment that we go after. And total contact center skews grew essentially by 41%, so faster than our total bookings. So I mean, I can’t be more pleased with contact center.And it tells you that the investments we have made in contact center over the years is starting to bear fruit. And it also gives you a sense of the strength of our model because we have one platform that one platform has essentially a PBX replacement. It has meetings, it has contact center, it has APIs and it has the ability to do collaboration. And so when you add all of those things together, we are able to mix and match different things in each of these things has different growth rates that we can leverage. And we are able to be flexible so we can partner where we need to. And we’re not this one-trick pony where all by the way, if somebody enters this particular market or somebody starts to compete in that particular market, we’re stuck. We’re able to move around and different parts of our portfolio grow and add value to different customers.

Okay, great. Thank you. So then I guess switching gears a little bit and looking at a little more into the 8-figure TCV deal some, thinking about how the revrec for that deal and how to look at that and you can provide any additional context around the duration or anything there that’d be really helpful.

Yes, the duration is pretty consistent with enterprise contracts, in the three years Zip code and it’s a SaaS model, so there is no magic and so far as revrec, it begins basically being taken on the subscription piece ratably. It does include some amount of services obviously, but the subscription portion kicks in immediately.

Okay, great. Thank you.

Yes, sure.

Your next question comes from the line of Jonathan Kees with Summit Insights Group.

Great. Thanks for taking my questions and my congrats also to the numbers. I wanted to ask about the new partnerships with ScanSource and Poly. You have talked about the training and the investment that you’re going to make in terms of getting the resellers, getting the partners up to speed in terms of a solution and even I guess purchasing some of the – all the Avaya phones, I guess on that tenor what kind of financial incentives where you’re providing or are you for like ScanSource resellers to sell your solution versus Avaya’s new cloud partner. And also for a Poly, I noticed that video was not there in terms of the partnership. If you have a customer who’s asking for a video, what happens there? And is there also a financial incentive there for Poly they sell your solution versus someone else’s?

Yes, so a couple of things. So let’s macro it up. We don’t fully understand and I think neither do – needed us ScanSource for Avaya resellers as to exactly what the other offering is that this seems to be quite a bit of confusion and it’s unclear who’s paper is being sold on. What the main model that we are doing and the reason ScanSource came to us and Mike Baur, Joe Burton and I have been spending some time on this.The idea is ScanSource believes that their VAR community wants to be able to sell the way they are used to selling and they feel like that is being disrupted right now with some of the changes in the industry. The way they used to selling is essentially on their paper, essentially buying wholesale from the original equipment manufacturer and then selling it on their paper and providing value added services. That is not the model that is being currently contemplated by some of our competitors. So the way we’re doing it is because we own the entire platform. I have everything from voice, video, contact center, collaboration, data analytics, all built into one platform.We have also spend a lot of money over the years on BizApps’ tools. And the idea is we’ve created something called partner exchange where a distributor or a VAR can buy essentially wholesale from us and then on their paper provide a quote to their end user customer and everything gets provision instantly. So you get the benefit of clouds literally the moment they place an order with us, it gets instantly provision for the end user. But the VAR is providing it on their paper.From our perspective, we love it because in essence the VAR has a level of customer intimacy that…

Okay. All right. That’s certainly makes sense. Thanks for that, Vik. The next question is for Steve. I get what you’re saying in terms of you don’t want to disclose Wavecell’s revenue contribution, but can you at least talk about the growth – year-over-year growth for the CPaaS business?

Yes, it was really strong north of 50% for sure. And candidly as we get more time in the business and it becomes more seasoned, we’ll look to provide more metrics on the business as we have. Every quarter we’ve come out with additional operating metrics to give people a sense. We’re about 90 days in or so and so we’ll definitely provide more. But the business is growing strong and it’s been consistent with what we’ve seen. And what people have known as out there and so continues to perform well. No surprises in either direction.

Great. I look forward to it. Thank you very much guys.

Yes, sure. Thank you.

[Operator Instructions] Your next question comes from the line of Josh Nichols with B. Riley FBR.

Yes, thanks for taking my question. Since the Q is not yet, could you just give me a breakout for the revenue split between U.S., UK and APAC?

The Q will be out tonight, most likely and may hit tomorrow. Generally speaking, the revenue contribution, which is different than our bookings contribution. Right. For example, revenue out of – outside of the U.S. is in the 15% Zip code, whereas it’s roughly a 25% of our bookings.

Okay. And you said that – so historically like last quarter, like the UK has been 10%, right? But you’re saying now revenue from outside the U.S. is 15%, but 25% of bookings correct?

That’s right.

Got it. And then I guess I just want to get a little bit of a better handle. So Wavecell grown faster for the CPaaS business. So I guess fair to assume for the margin outlook, is this level of Q2 margin probably maybe going come down a little bit further since Wavecell or CPaaS is growing faster and there’s generally lower margins associated with that business. Is that relatively a fair assumption to think about going forward?

No, not materially. And so we expect the margin profile to increase over time. To the extent that the CPaaS business globally accelerates and performs even more, that might be a reason why gross margin could come down a bit, but that’s not what we expect.

And then do you have any targets? We used to talk about operating targets for – like the common size R&D, sales and marketing. Now that this acquisition has been done, what you’re thinking for the 3Q or as we look a little bit a few quarters out for what those targets may be on a percentage basis?

So we have not laid out specific numerical targets, but we have communicated and committed to and candidly delivered in this quarter and expect to continue to deliver is improvement on our operating efficiencies. And so the whole notion of business model efficiency on the OpEx line for all three areas, sales and marketing, G&A and R&D is something we delivered in Q2 and we expect to continue to see efficiency improvements through the year, through each quarter. Not every line on them, every quarter a big improvement but net-net it should improve and most line items should improve as we continue to move forward.

And then just trying to guide back towards from the GAAP to non-GAAP, like the add-back items have increased a lot. Then cash burns kind of accelerated in a peak of like $36 million. It looks like a free cash flow for this quarter on a burn rate. Is that where you are probably going to expect to see like this $25 million level of add-back items going forward once you factor in the amortization, G&A, stock comp and all the other items, is that a fair run rate?

Probably a fair run rate on the recurring depreciable base shouldn’t materially be different next quarter for some of those non-cash items.

And then last question, I just kind of wanted to get a little bit more clarity, someone asked before. So I understand that the companies being potentially only one quarter with Wavecell. So only taking guidance up modestly for the year. But I’m a little bit surprised given that you had this big 30,000 feet win that’s the largest in the company’s history. And then on top of that you have this new partnership that’s going to be launching in another month or so and you’re investing $7 million in that partnership, but you’re not really taking revenue guidance up very materially and just kind of triangulating all those three, like what’s the explanation for that, besides just Wavecell and potentially being conservative on that front?

The explanation is that the company has been posting revenue growth in the 18%, 19% Zip code for the last several quarters. We committed to growing revenue. We did a terrifically strategic and important product addition to the platform that’s generating revenue and being integrated nicely. And we just raised guidance effectively from after delivering a quarter of 28% revenue growth. And now we’re guiding to similar levels of revenue growth and we and our largest stockholders and our board feel pretty good about that. So we don’t have an issue with that.

Right. And I’ll add one more on the ScanSource one. ScanSource is enterprise customers. From the time you invest and to the time you turns to revenue is a nine odd month timeframe. As Steven said, we’re very comfortable with the guidance, increasingly bullish about the company, pretty much every geography performed well, ANZ did very well. UK had their best quarter ever. Wavecell continues to perform – contact centers performing well. The concept of one platform is starting to all come together. We just need to develop a muscle of continuing to have solid guidance and keep beating it. And then one quarter does not a trend make, but keep going. And then I’m much happier to keep raising it more.

Okay. Thanks, guys.

Thanks.

Thank you very much.

And there are no other questions at this time.

Thanks, operator. Thanks, everyone.

Thank you, everybody.

Ladies and gentlemen, this concludes today’s conference call. Thank you for participating. You may now disconnect.