Good day, and welcome to Globant's Third Quarter 2022 Earnings Conference Call. I'm Arturo Langa, Investor Relations Officer at Globant. [Operator Instructions] Please note, this event is being recorded and streamed live on YouTube. By now, you have received a copy of the earnings release. If you have not, a copy is available on our website, investors.globant.com. Our speakers today are Martin Migoya, Co-Founder and Chief Executive Officer; Juan Urthiague, Chief Financial Officer; Patricia Pomies, Chief Operating Officer; and Diego Tartara Global Chief Technology Officer. Before we begin, I would like to remind you that some of the comments on our call today may be deemed forward-looking statements. This includes our business and financial outlook and the answer to some of your questions. Such statements are subject to risks and uncertainties as described in the company's earnings release and other filings with the SEC. Please note that we follow IFRS accounting rules in our financial statements. During our call today, we will report non-IFRS or adjusted measures, which is how we track performance internally and the easiest way to compare Globant to our peers in the industry. You will find a reconciliation of IFRS and non-IFRS measures at the end of the press release we published on our Investor Relations website announcing this quarter results. I'd now like to turn the call over to Martin Migoya, our CEO. Martín Migoya: Thank you, Arturo, and hello, everyone. It's great to be here to share our Q3 results. Globant continues to deliver on our commitment to grow and to be the best transformation partner for our clients. My team and I are identifying the strongest growth opportunities ahead and going for them. I'm looking forward to discussing our outlook with you. But first, let's begin with the financial results. In Q3, Globant…

Thank you, Martin, and hello, everyone. It's great to be back with you to discuss the evolution of Globant's technology offering. We're making exciting advances into new technologies and platforms for our clients. We're also providing them with the solutions to improve their systems and platforms to optimal efficiency. I'd like to begin with a closer look at what Martin mentioned about our studios. We launched two new enterprise studios for SAP and Oracle. As Martin mentioned, they will become part of the enterprise platform studio cluster together with sales force and process optimization studios. This cluster will help current and prospective clients increase productivity, reduce costs and maximize their business results. Now some new development regarding our current studios that are reinventing the game for our clients. Our Healthcare and Life Sciences rementioned Studio is capitalizing on opportunities of each sector, now that technology and life sciences are completely intertwined. This studio is working with the British multinational pharmaceutical and biotech company. We're helping them to develop a virtual contact platform that expand the reach of doctors who today are not accessible due to geography, relocation of resources, among other reasons. This industry reinvention studio has earned recognition for its work. In September, Quadrant Knowledge Solutions named Globant an industry leader in 2022 Park matrix for health care IT services. They highlighted low and end-to-end consulting capabilities to enhance customer impact and service excellence for clients as the reasons behind their recognition. In Financial Services, business ecosystems are notoriously complex and undergoing a transformation through technology. We have been expanding and leveraging our expertise in the global clients through our finance studio. This team is leading business transformation and advanced analytics with proprietary models, helping clients to optimize the use of their data and adapting their management models quickly.…

Thanks, Diego. Hi, everyone. I'm happy to be with you all again. Let's begin with the breakdown on revenue. The LTC company continues to be our largest client, growing by 25% year-over-year and 8.6% quarter-over-quarter. The rest of our accounts collectively grew by 35.4% year-over-year and 6.7% quarter-over-quarter. Our 100 square strategy continues to show results. Over the last 12 months, we have 13 accounts that brought in more than $20 million of revenue compared to $11 million from the same period the year before. We also have 255 clients with more than $1 million of annual revenue compared to $162 million one year ago. Regarding our geographical distribution of our revenues, in Q3, 64.9% of revenue came from North America, 21.9% from Latin America, 10% from EMEA and 3.2% from Asia and Oceania. While fully committed to building relationships with new clients, we also see a strategic value in accessing the networks of our current clients as an effective way to grow. That's why we continue to focus on the Net Promoter Score. We use this to measure how our clients refer us within their communities. Over the last 12 months ending in Q3, Globant show a Net Promoter Score of 74. This is four points above this score announced in Q2 comparing the previous 12 months. On a general basis, the Net Promoter Score is consistently above 75 and well above the industry benchmark of 41. We remain committed to delivering our projects with operational excellence and high quality. Now to headcount. Our global team continues to expand. In Q3, our total headcount reached 26,541 Globers, 24,922 of are IT professionals. This marked as 21.5% year-over-year growth. Globant's annual attrition rate is currently at 18.5%. It's the lowest in two years and 140 basis points below Q2's annual…

Thank you, and good afternoon, everyone. I hope you're all doing well. Let me first recap the solid results for the quarter. Then I will provide our guidance figures for the fourth quarter and the full year 2022. We are proud of the financial results delivered in the third quarter. We managed to post another quarter of strong growth, profitability and cash generation. Every Glober's effort across the organization is reflected in our results today. Also, we want to thank each and every one of our clients for the trust placed in Globant. Our revenues for Q3 were $458.9 million representing a 34.2% year-over-year growth. On a sequential basis, our revenues for the third quarter of this year increased 6.9% and Q3 revenue growth was 36.7% year-over-year in constant currency, 2.5 percentage points above our headline figure. Inorganic contribution to growth, stood at three percentage points in the quarter. Our business model continues to prove resilient in this macroeconomic environment. We continue to assess the increasingly complex economic outlook and observe that growth is moderating towards historic averages after an exceptional period of growth during the pandemic years. However, we continue to see our long-term growth drivers as unchanged, and we continue to believe that we are in the early stages of a multiyear secular growth trend. Under the current environment, we see a greater potential for our service offering because it is expensive and adaptable to client needs. Globant's value proposition continues to be unique in the industry. We continue to see technology as a solution for a wide array of challenges being faced across the business landscape. Our premier end-to-end capabilities continue to drive high ROIs for our clients while our port delivery model allows us to adapt quickly to market conditions. Also, our focus on robust delivery…

Thank you, Juan, and hi, everyone. [Operator Instructions] So with that in mind, I'd like to take the first question from our audience from Tien-Tsin Huang from JPMorgan. Please go ahead.

Yes. So the fourth quarter outlook was encouraging, nice sequential growth. Is there a way to maybe help us understand what's changed in the last 90 days with respect to what you had for the fourth quarter. I know the FX has moved. You have the acquisition of eWave? I just want to make sure we understand what's changed.

Sure. So thank you, Tien-Tsin, for the question. Over the last couple of months, as you know, we have closed the acquisition of [indiscernible] and the acquisition of eWave. At the same time, we continue to expand organically our business around the world. We continue to see strong growth ahead of us. And as you know, we updated our guidance both for the full year and for the fourth quarter. raising it now to 37.1% year-over-year basis and 28.6% for the Q4. The macro environment has changed a little bit. We continue to see some companies working on the budget for 2023 and maybe taking a little longer to close that budget. But overall, we continue to see growth ahead of us, and the Q4 guidance, I think, is pretty much it's a very solid number. It's pretty much unchanged to what we guided in the previous quarter.

Okay. Great. Glad to hear. And then I know you mentioned Disney clearly grew very quickly. But looking at clients two through five or two through 10 in general, any surprises there. It looks like it was down a little bit sequentially. Curious how broad-based that is? Any interesting call-outs or considerations [indiscernible]

This may had an amazing quarter with us. We grew 8.8% sequentially. But as you said, in the other two brackets, two to five and six to 10. You see actually two particular customers that, in one case, it's in the travel sector and the other one is in the financial sector, both of them in Latin America. In the case of the travel company, it's a very big project that we have been working for the last three, four years and expanding that relationship significantly. That project is now moving into an ongoing evolution phase. And while we continue to work with them on finding new investment ideas and new opportunities, the level of growth in that account came down a little bit. And the other one is, again, a financial institution in Latin America. So it's very specific to those two customers. All the rest of the customers in the top 10 have grown in line with the company and Disney, as you said. And as you can see in the numbers, had a very good quarter, something that we also, by the way, anticipated back in August when we had our previous quarter.

Yes, you did. No, it's all encouraging for that on that side. Thanks for the detail.

So our next question comes from Ashwin Shirvaikar from Citi.

Thank you and good quarter. I think my first question is on headcount. The growth seem to slow a bit. Is this -- are you sort of looking at the demand environment and reacting or becoming more careful if you can kind of comment on how you're thinking of headcount growth going forward? I mean obviously, the other factors that come in play with headcount include attrition and utilization. So -- how do you expect that to trend?

Sure. Thank you, Ashwin, for the question. The level of hirings and the level of net additions is always a combination between higher attrition, utilization levels. And in the current environment and while we continue to observe how budgets are going to be approved for next year. What's the macro going to be like over the rest of the year. What we have been doing, as we also anticipated in the last quarter was working on the utilization number, which went up more than two percentage points during this quarter, working also on the attrition level that came down from 19.9% to 18.5%. And we are -- we will continue to monitor all the macro variables combined with how the industry evolves and put that into consideration to be flexible in the number of people that we attract or we hire in a particular quarter. We still have room to grow on the utilization level. We still believe that attrition numbers can come down, and we will continue to monitor all the macroeconomic variables and how our customers continue to perform and be flexible and ready to accelerate hiring as soon as we have more clarity into the future.

Understood. And then the other question was with regards to the new studio announcement, the Oracle SAP. Does that -- it seems very promising. The question I have is, are you getting into more sort of regular system integration type work with where a lot of the other traditional SIs play? Or are you -- how are you going to differentiate the type of work here? Martín Migoya: Thank you, Ashwin. I may take the first portion and then I will let Diego to take the other. Look, this is something that our customers are requesting to us. They love the way we work, when they love the way we do things, the way we in some way, we integrate our teams and how it's our culture. And we have seen like a pretty steep growth during the past years in this specific segment. And we decided to back all that into a new set of studios. And I think it's a natural evolution. When you start working on the front end, then you need to work on the back end to be able to connect that from them with that back end. But then suddenly, the guys doing the back and say, "Oh, wow, we are seeing like a new way of doing things, and we want more of this." And I think this is what is happening on client after another, and that is yielding to a new way of doing things that normally were doing -- were done in a different way. So that's the dynamic that is happening. I think clients are pushing us more than us pursuing that in a in a proactive way, but we are very happy with what's going on. And I think we will be investing more in that specific space because there's a lot to change. There's a lot to reinvent -- and the Globant signature is extremely important in that space where status school is the key of the sector. So I don't know.

I think you pretty much covered it. I just want to add that I think there is currently sort of a mixed conception with regards to platforms being a cookie cutter or how you implement software. Platforms have become very robust, but also they allow you to go beyond what they used to. So nowadays, you have platform accelerators are great in terms of achieving great time to value, but also allowing companies such as loan, which specializes on implementations to create amazing experiences, and that's how we're aligning and partnering with these platforms on every specific sector. Just as an example of that, eWave got us a great amount of expertise within the Salesforce cloud commerce sector, as an example, reinforcing our expertise and knowledge. So this is -- again, I think what brings to loan here is more end-to-end capabilities, but always conserving the DNA of loan, which is reinventing industries, creating the best experiences connecting with clients.

So our next question comes from Moshe Katri from Wedbush. Moshe, please go ahead.

Very strong results. Congrats .Two questions. The first one on Disney. So Disney had very strong results for the quarter. Do you have any preliminary kind of comments on how -- what should we expect from Disney in calendar I'm assuming you're having some discussions with the various units that you're dealing with, but any color here could be helpful. Martín Migoya: Yes. We believe and we are positive about the long-term relationship we have with them, and we see the relationship growing and we are ranked on the top of the partners that they have. We work very hard for that to happen. So we feel that the relationship will keep on expanding in different areas, in different places. And what we see is parks being very robust in terms of activity. On the other side, on the direct-to-consumer the things are also very healthy in terms of amount of new things that are happening there. So overall, I believe that next year will be a positive year for Disney, too, and next quarter, of course. So this is what I'm seeing right now. I don't know what's going to happen in the future with macroeconomic situation. But I believe Disney and our relationship with them is great and the company overall is in very good shape.

If I can add something there, Moshe. If you look at our growth with this in this quarter was very solid, 25% year-over-year. But also if you look at the growth to the end. So all the rest of our customers, the level of growth was also very solid. So we go to top 10 accounts or just account for 34% of our revenues right now, coming down from almost 40% a year ago. So the point I'm trying to make here is that sometimes growth may be driven by some of the top accounts, including Disney. Other times, we have a great portfolio of customers that are maybe in the 11 to 40, 11 to 50, that also can contribute to that growth. The fact that now top 10 is a smaller number, also gives us the flexibility to grow in multiple parts of the organization. And I think that the fact that, for example, of our revenues is coming from public companies is also something that, in a way, it creates a great opportunity for us to keep expanding and growing our business. It doesn't -- my point will just not depend on one customer. Moshe Katri from Wedbush Yes. I appreciate that. Just as a follow-up, Martin, at the beginning of your introduction, you spoke about some companies starting to focus more on return on investment or ROI. And is that -- and some of your peers are also talking about the fact that some of their clients kind of moving are moving away maybe from a growth mode, more focus on costs and ROI. Is that something that you're actually seeing? And is that changing the nature of the work that you're kind of providing to your enterprise clients?

No. No, Katri. It's not changing. I believe -- that focus is because we can provide at the same time, like an increase on the revenue and a lot of efficiencies when you talk about costs. And we're that kind of company that we have been working historically on how to increase revenue. And now we have a very efficient model of delivering technology from many different places in the world, but not just that, but also we have tools like Magnify or Augoor or all the -- or GeneXus to accelerate and put like very good multipliers in terms of efficiency to the same teams producing what we develop. So I think that -- those two factors combined at the same time is what I refer to customers focusing more on return investments. It's not just about creating more revenue, now it's about being more efficient, too.

So our next question comes from Ernesto Gonzalez from Morgan Stanley. Ernesto, please go ahead.

Hi. Thank you for taking our question. We would like to get your thoughts and expectations on human talent management layers in the global tech industry have accelerated. And we would like to know how and what time frame you believe this could impact your ability to staff people your personal attrition costs? And also if there are any differences between labor markets or regions in general. Martín Migoya: So the first part of the question, I didn't get it. I don't know if you...

Yes. What is the impact of delay of the tech sector on our business? I think Pat is going to take.

Okay. So thank you for the question. I mean the market is still strong. The technology is still on the high end demand. So I think that in terms of how it's impacting our human talent in the way we are approaching, I mean, it's not direct these days. We have invested in how we handle our talent in Global for the last couple of years in terms of putting the people in the center of the organization, and that is giving us a result in terms of the attrition. As you can see, we expect the attrition at the same levels for the next quarter to continue to be lower. So I think that in the macroeconomics are things that are happening. Some companies in the tech industry are doing some layoffs, of course, I mean, Globant has been in a very a very good way in terms of keeping the talent as we have been doing all of these years in the middle of the pandemia. We also keep that in mind. So that is our focus on these days. In terms of the -- how is this impacting in terms of the region, Latin America is still a very strong demand in tech profiles, and we have been able to be the best place to work in many countries this last couple of months. So I think that the kind of relationship that we have with our employees has been amazing. Our Pulse engagement interviews with them has been very good results. So I think that the kind of relationship and the possibilities we are giving to our employees is really good. So I think that, that is a mix of things. We are keeping, of course, a very short -- our KPIs in terms of the utilization, in terms of the attrition in order to be seeing what is happening on everyday basis. Of course, we are relating on that. But I think that at this point, this is not changing the way we are handling our talent these days. I mean this is -- at this stage, we keep on sending by our Globers and of course, engaging with them and trying to be closer now than ever.

So our next question comes from Kate Carsten [ph] from William Blair.

Congrats on the quarter. Diving into the talent area a little bit more. So I know that hiring has slowed, but I'd like to know when you do hire now, are there certain skill sets that you're prioritizing when you do hire?

Well, of course, I mean, these days, I mean, the idea has been -- it's not that we are prioritizing now when skills are different from a month before. The demand is strong for us, and there is some kind of profile that we have been looking in the last couple of years that has to do with the correct talent for Globant. Platform where we are offering the people not only to stay in one project forever in one career forever. They have been the chance to go to many clients the accessibility to go to anywhere they want. So that is the kind of skill set that we are looking at these days. That has to do more with the kind of talent that is appreciating the way to growth. I mean this is related with a company that wants their employees to keep growing faster than ever and be the best version of themselves. That is the kind of talent that we are still looking. The last couple of months, we have been working very close with some of the specific countries that have been in crisis. And that has to do also with the kind of people that we want in our company to keep growing and to be handling. We have been reorganizing some of the structure the last couple of months in terms of the way we approach our clients, and that has to do with the kind of management that we are putting leading in front of the clients being closer to them. The 100 square program is an example of that. It's putting our best talent next to our client in order to be partnered with them. So I think that is the kind of the skill set that we are looking people that are really curious that they want to learn, they were to keep growing in a company that is growing, as you can tell by the results this quarter, and we keep on this track. I mean that is the DNA of the Globant culture right?

Great. That is helpful. And then shifting gears a little bit. You guys mentioned on the call that you're putting a targeted focus on Asia Pacific and the Middle East. Can you talk to me a little bit more about the opportunities you see for Globant in those areas? Martín Migoya: Yes, sure. I can take that one. I think that Asia Pacific for us has been an area which has been absolutely underdeveloped in the past. So some time ago, we decided that, that should change, and that should be one of the main areas of expansion. So we decided to start with some acquisitions like we did today and we announced the acquisition of eWave in Australia. And also, they have operations in Singapore, in Hong Kong and other places, which will help us. Also when we acquired GeneXus, they had an operation in Japan, and they will complement those operations that we are acquiring right now with eWave. And I believe there's a big opportunity there when you add up all the Asia Pacific plus the Middle East countries plus some other countries in which we operate, but sometimes the market was not a take like India or some other countries over there. So I believe that overall, when you take all those things it represents a gigantic market where needs are pretty similar to what we serve to our customers in the U.S., in Europe, in Latin America. So I think it's a very good vector of growth for us moving forward.

So our next question comes from Surinder Thind from Jefferies. So we'll jump back to Surinder. But our next question comes from Bryan Bergin from Cowen.

So as you kind of look forward here and scenario plan for which just may come, can you just talk about current levels of visibility in the business. How do you think about impacts of potential recessionary pressure? And is there any simplistic way to segment the mix of work that you're doing that might be more exposed versus what's more durable or the amount of clients or mix of clients that are really extending their budgeting cycles? Just trying to think about how growth resiliency can fare here given the macro and the customer conversations that you're having?

Sure. Thank you, Bryan, for the question. Yes, over the last probably two quarters, the global economy has been under a little bit of pressure with different things happening in different regions. Now we're getting close to year-end. And yes, definitely, we are seeing some customers delaying their budget processes and some projects sometimes ramping up a little bit lower because of budgets yet not been approved for next year. So that is reducing a little bit the visibility that we will typically have by this time of the year. At the same time, we continue to see good levels of growth, as you can see by our guidance for the rest of this year. We continue to see loan investing to be ready for when the macro comes back, as you can see by the investments we are doing, for example, on the marketing side with the World Cup, also in how we are getting ready on our teams in the different regions, how we are -- how we have been evolving our studio model. So we are a company that keeps on moving. We have just closed company an acquisition today. We continue to move. We don't stop because of the macro. We just need to keep evolving and getting ready for when it comes back. If by this time, visibility for next year in a normal scenario would be around 80%, probably we're a little bit down that number, maybe more like 70% or something around that number. So it's a little bit lower. And -- but we expect and we hopefully, when we have to guide for the full year, next February, the situation has stabilized a little bit. There are some good news coming from the macro inflation in the US stabilizing or coming slightly down. That was good news. So we'll see how it goes from now until the end of the year. So we are optimistic because Globant continues to evolve, continues to adapt, continues to invest continues to get ready, as always, as if this was a normal year. But of course, we are taking some precaution, especially on the hiring side until we have more clarity.

Okay. That's helpful. And then just shifting over to margin. Can you just talk about some of the drivers there that are factored in that 4Q outlook? It looks like a pretty healthy ramp sequentially that's implied.

Yes. Yes. On the margin side, like the same throughout this year. We continue to see operating margins in the 16% to 17% level. There, you have different things going on, some help on the maybe on the FX side in Latin America. At the same time, we continue to invest heavily to get ready for next year, investments in marketing, in sales and marketing teams in coverage in new studios, adding capabilities to our offering. So we continue to think that not just for this quarter but also for next year, that level of 16% to 17% operating income is a good target to have as a company.

Our next question comes from Walter Chiarvesio from Santander.

Well, congrats for the results. I would like to dig deeper in the sports segment in which you have announced this partnership and initiatives with Aleafia people's we to keep from you, how do you see this into medium-term in terms of -- I mean, the market must be huge in terms of number of potential clients and big wallets there. And the visibility on this is anyway that we could quantify this and if that could imply like a notch up in growth rate compared to the historical rate of Nova, I mean, looking forward. This is a thing that we should see as encouraging really impacting the growth rate in the next couple of years? Or will we saw were just a couple of examples of clients [indiscernible] Martín Migoya: That's a great question. Thank you so much. Look, I believe that what we are doing with all those sport initiatives and sports-related initiatives has to do a lot with to -- we have reached to a size come where we need to change dramatically the way we connect and the way we position our brand. And connected to that specific idea, this deal has like a like a dual objective. On the first hand, we are creating technology for all these institutions where we work with for FIFA, with FIFA+, with La Liga, with La Liga Tech, with LA Clippers we're creating the Intime technology for them. And on the other side, we are, in some way, positioning our brand as sponsors of those same brands. So I believe that this is a pretty large market. We are now entertaining conversations with many other leagues with many other teams that really want to create that seamless experience in the same way we create it for Disney. And…

Our next question comes from John Nutt from Piper Sandler.

Good afternoon. And thanks for taking my questions. Expanding your footprint in the APAC region has clearly been a focus. Are there any other geographies or regions that are on the radar for a particular interest for possible future expansion? And then kind of along the same line, my follow-up is how do you see revenue mix by geography shaking out over the next few years? Are there any regions that you would like to make more or less exposure to? Thank you. Martín Migoya: Mean we will need another planet, if you want us to keep on expanding. But I don't discard that. But in any case, just in the plan that we have, we are pretty much in every continent, except for Africa. And I think that there will be some movement there at some point in the future. But now the focus is being placed on Asia Pacific, on Europe, Latin America and North America. In particular, in Europe, we believe that expanding and having like much larger operations in countries like France or Germany, now we have a pretty decent operation in Italy after acquisition of at are extremely important things to make it happen. If you ask me, I think Europe should be larger in terms of revenue very soon and have like a larger share. Latin America is also poised to grow very fast. Our point there is that there are two markets which is Brazil and Mexico that for us has been growing very nicely. But now they will have the lion's share moving forward in terms of growth. And of course, in North America, now we open up Canada and we are expanding into Canada with many new things happening there. And again, Asia Pacific Asia Pacific, Australia and the Middle East countries, including Israel, in which we don't have operations yet. Those three things has like a pretty large market opportunity for us. So I would say that we would focus on those four things: Asia Pacific and Middle East, the -- Europe, North America and Latin America. Those are the four places where we'll be investing heavily to make it grow.

Our next question comes from Diego Aragão from Goldman Sachs. Diego Aragão: Yes. Can you please just provide some color on how the Globant X business unit formed this quarter in terms of growth and how much it represented in terms of revenue as well as whether this is already contributing positively to your margins or still diluting the margins?

So in terms of Globant X, we continue to invest in a number of platforms some of which are already generating revenues. Others are in kind of friends and family stage where we're testing with some customers that are good friends of ours. And finally, we have others that are just proof of concepts at this point. When we look at the level of -- when we look at the level of revenues that these platforms are generating, right now, we are -- it's around 2%, 2.5% of our revenues. They are growing at a nice pace. It's still a small number in the total revenues of Global, but it's growing at a nice pace. Now in terms of margins, by definition, all these platforms have to improve our overall margins, right, especially when you look at the gross margin level. Of course, as we are investing, they bring the depreciation and amortization. But at the gross margin level, they are -- they improve our margins overall. Diego Aragão: Understood, Juan. And maybe if I would think about like the portfolio of products in there, is there anything in particular that is driving most of the growth or is coming pretty much from different solutions and applications? Martín Migoya: Yes. Look, StartMeUp is doing great. I would say that Magnify is like in a pretty mature situation where our customers that are using it are consuming more every day, and that's great. I would say that all the things connected to La Liga and delegate has like the technology we got from that agreement -- it's a lot of -- there are a lot of platforms for streaming for prevent piracy to many platforms that are generating revenue in a pretty clear way, and it's an important addition to the platforms. And of course, Augoor, which is generating revenues more allowing us to differentiate the offer that we do for our customers. I think that those are the areas where we are seeing like more expansion and more growth.

So thank you, everybody. That will be the Q&A session for today. With that, I will now ask Martin to provide some closing comments. Martin, please go ahead. Martín Migoya: Well, thank you very much, Arturo. We are very happy to be here today. Thank you very much for your continued support and understanding and looking forward to see you in the next quarter. Thank you.