Greetings and welcome to Lumen Technologies Fourth Quarter 2020 Earnings Conference Call. [Operator Instructions] As a remainder, this conference is being recorded today, Wednesday, February 10, 2021. It is now my pleasure to turn the conference over to Valerie Finberg, Vice President, Investor Relations. Please go ahead, Valerie.

Thank you, France. Good afternoon, everyone, and thank you for joining us for the Lumen Technologies fourth quarter 2020 earnings call. Joining me on the call today are Jeff Storey, President and Chief Executive Officer; and Neel Dev, Executive Vice President and Chief Financial Officer. Before we begin, I need to call your attention to our safe harbor statement on Slide 2 of our 4Q 2020 presentation, which notes that this conference call may include forward-looking statements subject to certain risks and uncertainties. All forward-looking statements should be considered in conjunction with the cautionary statements on Slide 2, in the risk factors in our SEC filings. We will be referring to certain non-GAAP financial measures, reconciled to the most comparable GAAP measures that can be found in our earnings press release. In addition, certain metrics discussed today exclude transformation costs and other special items as detailed in our earnings materials, all of which can be found on the Investor Relations section of the Lumen website. Finally, we are announcing changes to our reporting categories beginning with the first quarter 2021 reporting. These changes can be found in our earnings presentation and press release with additional details and pro forma reporting for prior periods in the earning supplement on our IR website. With that, I’ll turn the call over to Jeff.

Thanks, Valerie, and thank you everyone for joining us today. On today’s call, I’ll provide a summary of 2020 and an overview of our growth priorities for 2021. Neel will then review our fourth quarter financial results, guide you through our new reporting structure and provide our outlook for 2021. After that, we will take your questions. We delivered solid execution in 2020 as our employees quickly pivoted to the new operating environment and empowered our customers to meet their own rapidly changing environment. It was a challenging year for our customers and our employees. The 2020 also highlighted the power, flexibility and scalability of our fiber-based offerings and the agility of our employees. I’m exceptionally proud of the team’s performance during difficult times. I’d like to cover a few highlights from the year and this is on Slide 4 in the presentation. For the last three years, you’ve heard me talk about the integration of Level 3 and the digital transformation of our company. Many of our efforts have culminated last fall with the introduction of the Lumen platform. I’ll discuss the details in a moment, but for now will say that we see the launch of the platform as a key milestone and I’m excited about the growth it can enable. The primary purpose of digital transformation is to improve the customer experience, but when done right, improving customer experience also enables cost savings. Our results reflect the dual benefit of our transformation efforts. In 2019, we announced $800 million to $1 billion in cost improvement, associated with our transformation initiatives. Through a combination of digitalization, simplification and other transformation programs, we achieved $830 million in savings as of the fourth quarter of 2020, a year ahead of our original schedule. The benefits of that work are seen…

Thank you, Jeff, and good afternoon, everyone. We have a lot to cover. So I'll start with a few highlights. Turning to Slide 10. Despite the macro environment, we delivered solid results. For the full year, we improved the total earning trajectory by 150 basis points, generated $8.9 billion in adjusted EBITDA, expanded our adjusted EBITDA margins and generated $3.1 billion of free cash flow. We continue to invest in the business with capital expenditures of $3.7 billion. Over the course of 2020, we reduced net debt by approximately $1.6 billion and refinanced approximately $13 billion in long-term debt, further reducing interest expense, extending maturities, and strengthening our balance sheet. Finally, as of the end of 2020, we achieved approximately $830 million of annualized run-rate adjusted EBITDA cost transformation savings, reaching our targeted savings range more than a year ahead of our expected timeline. Moving to revenue. For the full year 2020, total revenue declined 3.5% to $20.712 billion. As I mentioned in our highlights, this is a 150 basis point improvement from the 5% year-over-year decline in total revenue from 2018 to 2019. Turning to Slide 11, total revenue in the fourth quarter declined 3.4% to $5.125 billion. Moving now to our business segment, on a year-over-year basis, International and Global Accounts or IGAM revenue decreased 1.6% or 0.7% on a constant currency basis. Moving to our Enterprise segment, on a year-over-year basis, revenue decreased 0.3%. We continue to feel good about our growth prospects in IGAM and Enterprise. But during the quarter, we did see some lengthening of sales cycles. SMB revenue decreased 7.1% year-over-year. As a reminder, during the third quarter of 2020, we sold a significant portion of our legacy correctional facility communications business. The sale of this business impacted revenue by about $15 million in…

Thank you, Neel. [Operator Instructions] And our first question will be from the line of Batya Levi with UBS. Please go ahead.

Great, thank you. Maybe starting off with your EBITDA guidance for 2021. It looks like you're expecting it to be flat to down. Can you help us maybe quantify how much you're planning to spend on the transformation side of it? And with the outlook for potentially improving revenue trends and continued cost cutting efforts, why would we still see a decline in EBITDA? And maybe finally, you did mention that your – one of your focus will remain to lower leverage. I believe with this guidance you will still be above your leverage targets at year-end. Can you help us think about your capital allocation policy going forward? Thank you.

Hi, Batya. So I'll start with your question on EBITDA. So, on EBITDA I think there is a page in our earnings presentation that lays out the pro forma view. So from the starting point of $8.664 billion or guidance is $8.4 billion to $8.6 billion. Like you alluded to it, I think the guidance includes the cost to continue to transform the business. So we're not going to be slowing down. So we expect similar amount of cost in 2021 like we did in 2020. So you'll see there excluding severance in 2020, we had about $224 million in costs, so we expect about a similar amount of cost in 2021. The other thing impacting EBITDA in 2021 really are the investments we're making in growth and really changing the revenue trajectory of the business. So if you think about all the things that Jeff mentioned, those investments are just not capital, they both capital and operating expense. So some of the product initiatives we're working on, product development cost, there is ecosystem initiatives with partners, additionally, marketing, brand expenses, sales training, sales overlay, IT initiatives from code to cash. So all of those things are incorporated into our EBITDA guidance. So we are really focused on long-term EBITDA growth and a big part of our focus in 2021 is really improving the revenue trajectory over the long term with all the investments that we're making. So your second question was around leverage target. So we're already at 3.6 times. And so if will you look at our guidance, we are still committed to paying down debt. And our target ratio is – our target leverage ratio is still 2.75 to 3.25, we'll likely exit the year somewhere around 3.5 or slightly better. And within a quarter to one of our target range, so we're committed to it. Like you've seen us do in 2020, we will balance between paying down debt and investing in growth. And so that will be the balanced approach going forward.

Got it. Thank you.

Our next question from the line of David Barden with the Bank of America. Please go ahead.

Hey, guys. Thanks so much for taking the questions. I guess two, first is for Neel. Within the CapEx guidance that you've given, could you kind of carve out how much of that is going to be related to the CAF II commitments, such that we would assume that that would then disappear in 2022? And then, I guess following up on Batya's question a little bit, Jeff. Slide 5, you've got this kind of aspirational trajectory towards growth, but then on Slide 11, we're looking at declines in almost every business unit. So what are the biggest moving parts, both headwinds and tailwinds? They're going to get us from turning to Slide 11 from a lot of negatives to looking more like Slide 5, which is this trajectory towards growth in the fourth industrial revolution. Thanks.

Sure. Hi, David. So on capital guidance forecast, just to give you a sense of CAF II on capital, over the last three years, we've averaged over $300 million of spending against CAF II. And this year we're working on a series of initiatives to actually bring it down, so we don't know exactly where that's going to end up, but it'll likely be a probably less. Yes, in terms of headwinds and tailwinds, the way I would think about it is, if you look at our new reporting for the business segment, the top three product categories, computer and applications, IP and data, and fiber infrastructure, those are the ones that we're really investing for growth and voice and other will really manage for cash. Now when you look at the channel lens, there is some challenge with SMB and we're working on that turnaround and eventually grow that at some point. So if you look at it from a product launch, 70 plus percent of the business we're focused on driving growth for the business segment. And if you look at even from channel lens perspective, excluding wholesale, the business is about 75%. So that just kind of gives you a sense of the part of the business that we're focused on driving growth. And in terms of mass markets, it really is about broadband and our focus on investing in fiber and driving up penetration and that's what we'll be focused on.

And David, how we accomplish that is by our investments, by our focus, and where we're leaning in. Over the last couple of years you've seen us invest heavily in improving our customer experience and our digital interactions with customers in the way that our employees support them. But at the same time, we've been building and investing in the Lumen platform, in the capabilities that we want to deliver to the market. Neel talked about three big product categories that are growing but if you look inside some of those, things like edge computing, we announced last year that we were going to invest heavily in edge, today, we have about 60% of U.S. enterprises within 5 milliseconds. So as you look at the services that we've been developing Lumen Edge cloud, the Lumen Edge VM, the Lumen Edge Bare Metal, all of those capabilities we see as growth capabilities and we've been investing heavily in on this. As well as things like hybrid WAN and dynamic connections and new cash unified communications as a service, we continue to invest in the products and services and the capabilities that we need to deliver this. We continue to invest in the infrastructure making sure that we're expanding fiber to business, building out our edge cloud facilities and capabilities. And we've also been investing in our partnerships and making sure that we are partnering with world-class companies that we can take and put on the Lumen platform, companies like Zoom, companies like SAT, companies like VMware that we can partner with them and provide unique innovative solutions all over the Lumen platform. And so we'll continue to do that and continue to invest in the OpEx as well to drive those products and services. So Neel talked about that in his response to Batya's question about EBITDA. So I'd say that what we've been doing for the last couple of years have been investing in those things, but really building the platform at this point. And now it's more about rolling that platform to our customers and expanding the products and services they buy from us.

Yes. The one thing I would add, David, is, I think we're not pleased with the 3.5% decline year-over-year, but we're very pleased with the 150 basis point improvement from the 5% decline last year. So we're really focused on improving the revenue trajectory. The other thing you can see from our profitability metrics hopefully, which is hard to see with the top-line metrics that we're making the company more profitable and more durable.

Got it. I see that. Thank you so much, Neel. Thanks, Jeff.

Sure.

The next question is from the line of Eric Luebchow with Wells Fargo. Please go ahead.

Great. Thanks for taking the question. So Neel, I wanted to follow up on that, on the CAF II roll off. I think as you said, it sounds like potentially next year there could be a several hundred million dollar impact to free cash flow and you would probably reinvest some CapEx into fiber-to-the-home. So curious, how do you think about your dividend payout ratio beyond this year pro forma some of those initiatives, and whether that changes your capital allocation initiatives at all? And in addition, if you could maybe frame-up the outlook for fiber-to-the-home within your consumer segment, how many homes you think makes sense to build to, and maybe some more color on that would be helpful? Thanks.

Sure, Eric. So if you think about CAF II like I mentioned, we were – for last three years, we averaged more than $300 million of capital. The other thing to keep in mind is that we – through end of last year, we have enabled about 1.1 million units, and these are really in underserved areas. So we are selling into that and that revenue and penetration is picking up every quarter. So there is also cash coming in from the footprint that we have enabled. So when you look at the puts and takes going into next year of the subsidy, the capital going away, and cash coming from customers in that footprint, when you add it all up, it is not a material impact to our free cash flow. So really doesn't change anything from a capital allocation perspective. And in terms of RDOF, like I mentioned in my prepared remark, so we took a very disciplined approach and so even when you net out the subsidy, our – returns that we see on fiber-to-the-home is significantly higher. Just to give you another data point, one of the largest winners of RDOF just announced that it's a $5 billion price tag to build out to about 1 million homes. If you compare that to the 400,000 homes that we just enabled last year, we certainly didn't spend a couple of billion. And so we have a different profile in terms of where we're investing fiber-to-the-home and we'll be success-based on that front, we're not setting any specific targets. In our new disclosure, we're providing the enabled homes and we're giving you penetration, so you can see that we have a fair amount of addressable opportunity to sell into. So we'll ramp up on a success-based basis if it makes sense.

And I'll just add from a market perspective, we're super excited about our Quantum Fiber brand and the capabilities that we bring to the market, the digital experience is, in my opinion, second to none. We're – NPS scores reflect a very high satisfaction, the quality of the product, the bidirectional nature of the quality of the products, and the symmetry of that capacity, the query networks that we tie that into, we're extremely excited about the capabilities that we give to the customers and their acceptance of it.

Okay, thank you, guys.

Sure.

Our next question from the line of Tim Horan with Oppenheimer. Please go ahead.

Thanks, guys. Can you give us a little bit more color around the Lumen platform, how differentiated do you think you are now versus your peers? I know it's not just a platform, it's also your infrastructure, can you maybe just talk about – it sounds like you're excited about revenue growth improving just maybe about the flow shares that you're seeing with some of your larger customers out there? And then lastly, where are we in commutation of the platform, I guess more – from enabling new revenue growth but also lowering your own kind of internal expenses? Thank you.

Sure. So over the last couple of years, you've seen the expense impact of the platform that we've been building. If you think back, I've referenced this in the prepared remarks in 2019. 2019, we said we were going to save $800 million to $1 billion in transformation expenses in the quarter. Fourth quarter, we reached $830 million, and so you can see the benefit in our cost structure of the platform that – now let me tell you a little bit more about what the platform is and why it's different than everybody else. First of all, it's built and I'm kind of referencing Slide 6 in the presentation. It's built on what I consider to be the world's best fiber infrastructure. The ubiquity of our fiber, the density of our fiber, the reach, the stand, the quality and the ability to upgrade capacity which we saw in 2020 with COVID is second to none and we'll continue to invest in building that infrastructure. But not only that, we've been able to locate our edge compute nodes with that fiber and with the peering connectivity within 5 milliseconds of the majority of the U.S. enterprises. By the end of the year, we'll be at 95%, 98% of U.S. enterprises and so there is that coupling that nobody else has, nobody else has that ability. But then we also have the – again the peering networks but the connectivity and the cloud service providers, the 2,200 data centers on net and our dynamic connections capability is really a network as a service where we integrate into our customers applications and they get to control that entire footprint, that entire connectivity, all the way from there in location, to wherever they want to do the computing on it, to wherever they…

And how unique is this platform you think versus your competitors?

Well, I'm biased. I don't think anybody is in a position to do what we do. There is certainly some people that have good fiber networks, there's certainly people that have great cloud capabilities, there's certainly a few people that have some orchestration capabilities. I don't think anybody can bring those things together in the way that we do. But we certainly have very good and strong competitors, but we just think we're unique and we think it'd be hard to replicate for others.

Thank you.

Sure.

Our next question is from the line of Frank Louthan with Raymond James. Please go ahead. Mr. Louthan, your line is open. Please go ahead with your question, sir.

Sorry. Got to learn to use the mute button a little better. So back to the growth issue, just wanted to discuss that a bit. I mean your fiber network in the region and so forth that you have, I mean, I think most of us are well aware of that, that's not necessarily new. What tactically, from a tactical perspective or from sales perspective, do you think you're going to be doing differently to be able to monetize that network capability in reach than maybe you have been in the past to build achieve that growth that you're calling for?

Well, it is the Lumen platform. It's the combination of all of these things and it's the intersection with our customers' needs. With the fourth industrial revolution, the need to process massive amounts of data with very low latency is really critical. And so we view our fiber infrastructure, this is another application of how we can utilize the fiber infrastructure to deliver that capability of the customers. The ubiquity of it and the density of it allows us to give that 5 millisecond performance gives very low latency to our applications. The global nature of it allows us to carry that traffic to anywhere in the world, the connectivity of it allows us to carry it to any place in the world. So if you want to go to a particular cloud service provider, we can deliver to that one, if you want to go to a different cloud service provider, we can deliver to the other one. And so, the fiber network is the core foundational piece for the Lumen platform that sits on top of it and then all those other capabilities come in. Now, we've continued to do things, Frank, that are intended to increase the value and the usefulness of the fiber network. If you look at our building edge, if you look at our fiber-to-the home expansions, those are about expanding the footprint. Last year, we talked about the use of the latest and newest technology and fiber capacity or excuse me fiber technology that we were deploying, building the world's largest deployment of that type of technology. What we leveraged there with our existing conduit infrastructure, because we can build fiber at a very fast pace and at a low cost because of our conduit infrastructure. But we used that fiber for super high scale capabilities, capabilities in delivering the world's internet traffic, but also connecting the hyperscalers and cloud-service providers and great big software-as-a-service companies, those types of things.

Okay, great. Thank you very much.

Sure. Thank you.

The next question is from the line of Simon Flannery with Morgan Stanley. Please proceed.

Great. Thanks very much. Jeff, you've talked a lot about broadband today. We've got a new administration, a lot of focus on the digital device, there was money set aside for RDOF too. There's other programs being proposed in Congress, infrastructure builds etc. So what are you hearing from your folks in Washington, what sort of opportunities do you think this might present for Lumen? And then, perhaps you could just expand a little bit on the lengthening sales cycle. We're obviously still and the kind of pandemic, what – has anything particularly changed over the last month or two I think it's gradually getting better or any color there would be great.

Sure. And what do I expect out of Washington or are there any opportunities, I don't really have any particular expectations. I expect something out of Lumen. I expect us to following a disciplined, financially driven logical approach to what we serve and what we don't serve. And as Neel pointed out, we think we have lots of opportunities to put our money to work inside of our existing footprint and outside to some extent. But inside our existing footprint, at better returns than some of the RDOF dollars even with the subsidies. And so, we will follow a very disciplined approach to whatever comes out of Washington. And we'll work within the footprints that we have to deliver the best service for our customers with the best digital interactions so that they can overcome the digital device and have the best capabilities. And that's one of the things that we think we stand out on is more people work from home and educate from home. We think the symmetrical nature of our fiber footprint is a huge advantage for consumer customer or small business customers.

And on – sorry, yes.

And then on second question. On the sales, the lengthening of the sales cycles. Is there anything different here? Probably not. That was what we found is people aren't resolving what is this post pandemic world look like yet, because we're not in a post-pandemic world, we're still in the middle of it. And so, I think that it is not terribly that much different. But we thought it would be getting better by this point. And so, we see this lengthening of sales cycles as people are really trying to resolve what is it look like post-COVID and how do we think that the world is going to run? Now, I'll tell you my opinion, which is we don't go back to the way the world was and that work from anywhere with reasonable capacities and security and expanding the enterprise edge, not, not the cloud edge, not the Lumen Edge, but expanding the edge of the enterprise to thousands and thousands of different locations is something that's going to create management challenges for customers and security challenges. Challenges for customers are actually good for Lumen, because we can bring solutions to their capacity needs, their security needs, their orchestration needs and their control needs for how to manage these complex networks. And so, while we still – we see this lengthening in cycles, long-term we think that the – and I hate to say that the outcome of the pandemic is good, I don't mean that. The outcome of the way we will work after the pandemic is fairly good for Lumen.

Right. Thank you.

Sure.

Our next question is from the line of Nick Del Deo with MoffettNathanson. Please go ahead.

Hi, thanks for taking my questions. First you've highlighted the improvement in the growth rate this year versus last year. I understand it's hard maybe impossible to tease out. But as you look back over 2020, do you think COVID ended up being a net revenue benefit in the year from higher voice and capacity augmentations and so on, or drag or about neutral?

Nick from my perspective within a segment, it's kind of hard to tell. But overall I think it was net negative, just because we had fairly robust plans in terms of turnaround mid markets and that got delayed, so it's hard to tell whether it's our execution or the environment. But from that perspective, if I were to handicap it I'd say overall net negative.

Okay.

Nick, and I'd say okay thing there are pluses and minuses, probably more minuses than pluses. If you think about some of our international customers, where their markets were particularly hit hard, there was a negative. If you think about some of the emergency capacity upgrades we did for people, that was a positive, overall more negative than positive, especially as it affected peoples' decisions to do something going forward at by capacity by networks, by solutions. So, overall, I'd say it's a net negative.

Okay, that's helpful. And then, maybe turning to the outlook for 2021. Maybe it's a bit of a loaded question. But how would you characterize the level of conservatism in the outlook, given the economic situation and the effect on sales cycles and what not or maybe stated differently, How do you think about the different puts and takes and how do you incorporate that into your guide?

So one of the things we've seen in 2020 that the services we offer are fairly resilient. Obviously, in 2020, we pulled guidance because there was so much uncertainty. But as we went through the year, we saw minimal impact even in some of the industries that were heavily impacted by the pandemic. So on balance, I would say, we're fairly comfortable with the range. And we also, we have robust plans in terms of continuing to take cost out of the business. And so, from an EBITDA and a free cash flow perspective, we feel pretty good about the range.

Yes. And then, I'm going to answer your question slightly, slightly a different question than you asked. As I think about the optimism of our investments, going forward, I'm very optimistic about our investments. We know what the outcome of the capabilities that people need to look like, not always sure about the timing. We can miss on timing a little bit. We know where the market is going and what the capabilities are. And so, we're optimistic and we're investing both in OpEx and then CapEx with that optimism driving our behavior.

All right, thank you both.

Our next question from the line of James Ratcliffe with Evercore ISI. Please go ahead.

Thanks. Two if I could. First of all, on the cash interest side, how much room do you think you still have to go on that, you think brought down to $600 million over the last couple of years and how much runway would you still have on that front? And secondly, on the fiber-to-the-home expansion, you added 400,000 homes this year. Can you give us some color about what those homes were previously or do they new construction or places where you've already operate broadband or additions to your wireline footprint? Thanks.

So, on the cash interest, I would say that from a milestone perspective, we're significantly ahead of what we thought where we're going to be when we tipped off the deleveraging plan. So it really is dependent on market conditions. And so, we think there is more opportunity and we'll continue to focus on it and, but it really is dependent on market conditions.

Yes. And just to add on the fiber-to-the-home question. James, you asked, is this new construction, is that where you already operate, is it overbuild? The answer is yes. It's all of the above. And I'll give you some examples. We build new homes all the time as a part of our, as homes grow in the market, we focused on making sure that we're building into those subdivisions with fiber. It's a big part of our fiber expansion plan, making sure that when it's cheap to build and before homes get there, that we build the right infrastructure and to grow them. Is it in our footprint? Most of the fiber expansion is in our footprint, but not all of it, if you look at in the used outside of our footprint, we think we have a great fiber penetration in markets that we don't have consumer customers today. And so we go to those into use though and so we want to serve you in this market. And then we've actually partnered with some communities like Springfield, Missouri, where we win an overbuilt of the two providers that were there in conjunction with the city to expand our capabilities. So it's a little bit of all of the above. All of the above has one characteristic and that is – maybe two characteristics that we think we can drive revenue growth at a low cost to capital and a low OpEx to do it. So we view every opportunity through that lens, how do we make sure that we use our capital efficiency efficiently and how do we make sure that we get the penetration that we want, Neel touched on, that is an opportunity for us. We still have an opportunity to improve our penetration in our fiber markets. But it is a little bit of all of the above new construction, overbuilds in existing areas and then some expansion outside our traditional footprint.

Great, thank you.

Sure.

Our next question from the line of Phil Cusick.

Okay, thank you. I think this will be our last call – our last question. So thank you, operator.

Very good. Our last question then will be from the line of Phil Cusick with JP Morgan. Please go ahead.

Saved by the bell. I'm going to ask every question I have left. So just a few housekeeping ones for me. What's the penetration in those CAF areas now and how much revenue is this contributed?

So Phil, I – we don't disclose that, but I would say, part of it is it's a moving target. So where we have finished building, we are seeing relatively high penetration, but keep in mind, a lot of the units we're building as every quarter. But we expect fairly good penetration on that, significantly higher than what we're seeing everywhere else.

Okay. And as you finish up those built this year, it sounds like you expect to spend maybe a similar amount on fiber broadband construction going forward but in – maybe in a higher return to the micro-targeting areas, is that the right way to think about it?

That's absolutely right. But we're going to be very success based about it, we're going to calibrate between how our penetration is going up versus how much footprint we're converting to fiber or adding fiber, like Jeff mentioned. So we will continue to have that micro-targeted approach, but the pace at what – at which we go and invest, will be of – will calibrate that to our execution and driving up penetration.

And while we are more than capable of focusing on two customer sets, at the same time, we've talked a lot on this call about fiber-to-the-home and consumer, I don't want to lose sight of our investments that we're doing for enterprise. That's the vast majority of our investments in fiber and then at the Lumen platform. Now we've got great benefits of the Lumen platform that we bring to consumer customers because of our digital interaction approach to working with them. We see it in our Net Promoter Score's surveys. We've got great benefits that we're bringing to small business, mid-market business, enterprise business, IGAM, and we'll continue to leverage all of those investments to drive the trajectory of each of those groups to the best that we can. So, thank you and...

So I was going to go there.

Go ahead.

I was just going to say, it sounds like that frees up capital for you to spend, not necessarily on consumer but maybe on a higher return enterprise fiber opportunities as well.

Well, the way I would say it is, we're not constraining capital today. And so we're going to even in a year with a fair amount of uncertainty in 2020, we spent $3.7 billion and so we're not really constraining capital, we'll be success based about it. We don't want a lot of standard capital, but as we see opportunities we will lean in and invest, but well-calibrated to our execution. And we have a very dynamic process to Jeff's point, I think we dynamically allocate capital between enterprise and consumer between edge and fiber-to-the-home, we'll do that on an ongoing basis to make sure we're getting the right financial outcomes.

Well, thank you all for the engagement and the questions. Before I conclude the call, let me summarize a few thoughts on 2021 and how you should think about our business. But in the face of an uncertain environment last year, we made significant progress in evolving the company. We delivered for our customers, improved our revenue performance, and continue to pay down debt, and improved the balance sheet following several years of work. We launched the Lumen platform and expect to drive long-term growth by meeting the changing needs of the fourth industrial revolution. In 2021, we are fully focused on driving growth through expanding the reach and the capabilities of the Lumen platform penetrating our existing fiber investments, leveraging our edge strategy, and expanding the alliances that we're working on within the industry. As always, we look at growing free cash flow per share as the guiding principle and believe we're doing the things we need to drive growth in long-term shareholder value through the growth in free cash flow per share. Thank you all for joining us today. I look forward to connecting with you at our upcoming Analyst Day. France, thank you very much. That concludes with the call.

Thank you, Mr. Storey. We would like to thank everyone for your participation, and for using Lumen Technologies service today. This does conclude the conference call, we ask that you please disconnect your lines, have a great day everyone.