Oracle Corporation (ORCL) Q1 2011 Earnings Report, Transcript and Summary

Good day, ladies and gentlemen. Welcome to Cerner Corporation's First Quarter 2011 Conference Call. Today's date is April 28, 2011, and this call is being recorded. The company has asked me to remind you that various remarks made here today by Cerner's management about future expectations, plans, perspectives and prospects constitute forward-looking statements for the purpose of the Safe Harbor provisions of the Security and Litigation Reform Act of 1995. Actual results may differ materially from those indicated by the forward-looking statements. Additional information concerning factors that could cause actual results to differ materially from those in the forward-looking statements may be found under the heading Risk Factors under Item 1A in Cerner's Form 10-K together with other reports that are on file with the SEC. At this time, I'd like to turn the call over to Marc Naughton, Chief Financial Officer of Cerner Corporation. Please proceed.

Thank you, Melanie. Good afternoon, everyone and welcome to the call. I will lead off today with a review of the numbers. Zane Burke, Executive Vice President of our client organization will follow me with sales highlights and marketplace trends. Mike Nill, Executive Vice President and Chief Operating Officer will discuss operations. Mike will be followed by Jeff Townsend, Executive Vice President and Chief of Staff who will discuss strategic initiatives. Neal Patterson, our Chairman, CEO and President will join us for the Q&A portion of the call to provide closing comments. As we announced last week, Mike Valentine will be leaving sooner effective May 13. We would like to thank Mike for his many contributions to Cerner and wish him well in the future. We are pleased to have Zane Burke and Mike Nill with us on the call today. Zane and Mike are both seasoned leaders who have contributed significantly to Cerner's success, and we look forward to having them share their insights on the call. Now I will turn to our results. All key measures in Q1 were at or above our expected levels. Bookings were very strong and exceeded the high end of our guidance range by nearly $60 million. Our income statement performance was very good with revenue and adjusted EPS above our guidance and consensus and continued strong margin expansion and earnings growth. We again had excellent cash flow performance, with record levels of free cash flow both reflective of strong earnings quality. Moving to the details. Our total bookings revenue in Q1 was $525 million, which is the best result for first quarter in the company history. Bookings significantly exceeded the top end of our guidance range and were up 30% from Q1 of '10. Bookings margin in Q1 was $443 million or…

Thanks, Marc. Good afternoon, everyone. As a brief introduction for those of you I haven't had the opportunity to meet. I have been at Cerner since 1996, starting out as an executive in our finance organization where I worked for Marc as our corporate controller and business development leader. Since 2002, I have held several roles in our client organization, most recently being focused on driving new footprints as leader of our Client Development Organization and owning Cerner's relationship with investor-owned hospitals. Additionally, I have had responsibility for employer network service offerings. With that, I'll move to the discussion of our sales results and marketplace trends. I'll start first with the results. We had a very strong quarter, included excellent progress at expanding our relationships with existing clients, while also demonstrating our competitiveness by gaining several new clients. Our bookings revenue in Q1 of $525 million reflects 30% growth over last year as all-time high for our first quarter. Bookings this quarter included 16 contracts over $5 million, 11 of which were over $10 million. This is also a record for first quarter. Our competitiveness was strong, with 26% of bookings turning from outside of our core Millennium installed base. Overall, the market is very active and I believe Cerner is extremely well positioned with our broad and deep solution portfolio, our readiness to meet Meaningful Use and proven service capabilities. This is in contrast with many of our competitors that still have solution gaps, constrained service capabilities and other types of uncertainty surrounding them. As a result, I expect Cerner to have a record year of gaining new footprints in 2011. The breadth of our solutions and services are also reflected in our bookings this quarter. We had good contributions from all business models, with particular strength in license…

Thanks, Zane. Good afternoon, everyone. For those of you I haven't met at one of our analysts' days or meetings at our headquarters, I've been with Cerner since 1996. For the last several years have had responsibility for IP development CernerWorks, ITWorks and support organizations. In my new role as COO, I have added responsibilities for elements of the client organization activities, including sales and professional services. Today, I'm going to focus my comments on professional services, CernerWorks and ITWorks. I'll start with our professional services business, which had a great start to the year with a record level of bookings for our first quarter. The organization continues to contribute nicely to our income statement, representing a visible element of both revenue and earnings growth. Our execution on projects has been strong, and we remain ahead of schedule on most projects. We also remain on track with our hiring, which has allowed us to ensure our projects are fully staffed on the planned start dates. We now have over 2,500 associates in our professional services organization, which is the largest IT consulting organization in healthcare IT organization in the world. We are also the most experienced with an average of more than 5 years of experience across our organization even when you include the recent increase in new hires, which often come directly from college campuses. Our size, scale, experience and ability to deliver predictable outcomes at a predictable cost are major differentiators in the marketplace. Another element of our differentiating services capabilities is CernerWorks managed services, which provides unmatched scale and service levels. As an example, we support approximately 130,000 peak users to our data centers in Q1 and had an uptime approaching four nines or 99.9% system availability. In addition to our unrivaled scale and service levels, we…

Thanks, Mike. Similar to past calls, I'm going to talk about some of our new initiatives in Cerner's evolution from a focus on helping clients automate the care process to focus on both health and care, as well as the role of our Healthe Intent platform in accelerating the impact of a digitized care delivery system. As Zane and Mike have discussed, Cerner is very well positioned for strong growth in coming years. Most of this growth will be tied to digitizing the core of healthcare. We believe this digitization sets the stage for another significant wave of growth. Much of this will come from our focus on the health part of healthcare, because when the core is digitized, a new level of consumer health awareness is possible. While the majority of the dialogue today is around cost, we see the entire landscape as more of an iceberg, witas the cost of care being above the surface. The much larger population and future costs associated with the health and well being of that population lurking below the surface. As we demonstrated during our investor day, the majority of the highlighted solutions were running in the cloud as part of our Healthe Intent platform. This allows us both to advance innovations more quickly based on the nature of that platform, but also introduces a new layer of capabilities above the individual enterprise, addressing the range of offerings from coordination of care, quality monitoring and consumer engagement. As many of you know, Cerner spent the last 5 years trying to crack the code on making good health pay. We've made changes to our health plan, hired a third-party administrator, launched the new age on-site clinic and pharmacy, incorporated biometric measurements for our population, realigned the economic incentive for associates in our health…

[Operator Instructions] Our first question comes from the line of Ryan Daniels with William Blair & Company Jeremy Lopez - William Blair & Company: This is Jeremy for Ryan. I just wanted to key in on the commentary around the wins you've had with both that have included both inpatient and outpatient. And I'm curious, what is the average increase in deal size when you are selected for both relative to the same client if they just went with an inpatient system?

This is Marc. It's hard to generalize exactly what the difference is when you do both inpatient and outpatient. Clearly, it grows the size of the deal. But for the most part, it's the extension of the inpatient EMR licenses to the outpatient clinic. So while the overall dollars are not significant, we're adding the ambulatory. There is -- they certainly increase the number of user, which is the metric by which we get paid. So it's not going to be 50-50 but it could add 25% to a deal depending on how the deal is structured. And certainly, strategically, winning the ambulatory side is key for us. Jeremy Lopez - William Blair & Company: And how many would you say have either -- have you implemented, and I'm just looking for order of magnitude, not maybe real precise number, but in terms of those that you have already that are either reference-able or in the process of implementing or have ordered at this point?

Relative to the ambulatory? Jeremy Lopez - William Blair & Company: Yes, that are both -- the inpatient and outpatient. What is the footprint look like at this point that either are using that already or are intending to use both together?

This is Zane, Ryan. I would say we're in excess of 50 clients that are in that realm of having both inpatient and outpatient in our large systems. Jeremy Lopez - William Blair & Company: Okay. Great. And then the last question is a little bit more strategic in nature, but you quickly are amassing quite the war chest of cash. And I'm curious what your strategy is for capital deployment as that cash balance continues to grow. Thank you.

Yes, this is Marc. As we continue to approach $1 billion of cash on the balance sheet, our strategy right now is to look for opportunities in the marketplace, where we could expand our footprint through some type of an acquisition. And we'll continue looking at that strategy. That strategy has a time limit on it because we think it will only be effective, probably at sometime around the next 12, maybe 24 months. At that point, if nothing has come to fruition, we will look to return the cash to our shareholders in the most effective way possible

The next question comes from the line of Newton Juhng with FBR. K. Newton Juhng - FBR Capital Markets & Co.: I had a question about the small hospital market. I was just curious how much of an advantage do you have when a nearby large hospital system is running something with Cerner. Do you find that the smaller 75-bed or less type hospitals tend to be more receptive to the solutions you have as a result of just being kind of geographically placed in an area where there may be a particular system that's kind of the big fish in the sea?

This is Zane, Newton. What I would tell you is in many cases it's very helpful to have that local, larger organization that has some sort of affinity that's related to that other organization. And often times those clients are advocates of ours. And we've proven our value, and we're able to use that as a broad reference site. So yes, it does have an advantage for us. K. Newton Juhng - FBR Capital Markets & Co.: And then in terms of your, I guess, the broader addressable market there. Is there any way to kind of quantify what has that versus what doesn't, in terms of demarcating the market for the ones that have that opportunity?

Is your question, Newton, how many communities do we have major footprint in that we can have leverage relative to new opportunities? K. Newton Juhng - FBR Capital Markets & Co.: Yes, where you feel like you have that decided advantage, I guess?

That would be most of the U.S. and many of the countries we are in because we are obviously a large market shareholder and we're broad. So it is very easy for us and having rolled out the Millennium for a period of time. We have a lot of effective satisfied users that we can look very similar to the person looking to make a buying decision. So we are not lacking at all for reference-able sites that are geographically near to potential new clients.

Our next question comes from the line of Donald Hooker with Morgan Stanley

So the free cash flow looked pretty strong in the quarter and what are you thinking for the year? Any kind of guidance around that?

Well, I think it does mark. Clearly, Q1 was very strong we have probably a little less CapEx than we would have normally planned. As you know, we've talked about CapEx for the year being in the $130 million to $50 million range starting off at the low end relative to that range, we would expect to probably end up somewhere in the low end. We think CapEx will probably go up a little bit in the last half of the year relative to our planned investments in our hosting business and our managed services businesses. But overall, for the year, we will be probably at or below the $130 million that we previously used as our base. So I think if you just used the growth in net income with $130 million CapEx, I think you'd be pretty close to where we should end up for free cash flow for the year.

Got you. And in the international, the global segment you reported, I guess, revenues down year-over-year. When you look over the next like 4 to 8 quarters, I mean, can you give us any kind of suggestion what markets would you suggest we focus on as potentially turnaround, Middle East, Southeast Asia, Europe or where do you kind of sense that there might be a bounce back?

Well, I think -- this is Marc, that broadly for the globe, we're seeing activity. Certainly, Europe is still coming from behind. But in the U.K., we saw some very good footprint signings, 2 footprints. This quarter we see more in the pipeline there. So that's expanding and we think the Middle East and the Far East both have potential to bounce back as well this year. I think this year, the revenue being down year-over-year is a little bit the reflection of the strong year ago quarter globally relative to this quarter. And I think as we indicated, we would expect our global revenues to grow as compared to the prior year's as we go through this year. We think there's a very good chance to have a strong global year in a variety of areas, which are really at this point too broad to go into all of them.

And if I can sneak one last quick one in. I think in the last quarter you talked about a 30% year-over-year growth in your PowerWorks ambulatory offering, is that kind of a continuing trend into the first quarter of '11?

This is Zane. I would say it's very similar. If not, a little bit increased to that.

Our next question comes from the line of George Hill with Citigroup.

Marc, quick question with respect to bookings. Two questions actually. Number one is bookings duration, are we starting to see -- are we continuing to see the bookings duration kind of go from the 4- to 5-year range to maybe a period of slightly longer than 5 years?

No. I can provide a little color there, George. If you really look at our bookings and kind of look at the managed services which are the longer term 5- to 7-year type of bookings that we have seen, we've really had those in our bookings at this point so long that it's really no longer a differentiation when you go look at the comparable prior periods. So for this quarter, we had approximately 25% to 30% range was coming from the 7-year type bookings. And that's probably actually a little bit lower than we've seen in the last, probably, 4 to 8 quarters. So I think bookings still is a very good measure of our future short term, and as well as longer-term opportunities, but this quarter there was no -- the over attainment on our bookings guidance was really broad. It was across the spectrum in every area, from services to software and managed services was right in its normal percent range of a bigger number. So it also contributed somewhat but it wasn't any unique longer-term type of duration.

That's great color. Thanks, and maybe just one quick follow up there. If a smaller company in the space actually indicated that they have started to see deals slip from the current period probably to the back end of the year or maybe even next year as hospitals thought about driving forward to hit Meaningful Use either with best-of-breed solutions or earlier or just pushing off until 2012 to give them a longer lead time to hit Stage 2 with respect to Meaningful Use. Even though the bookings performance was great do you feel like you guys might have seen any slippage?

This is Zane, George, and I would tell you what we continue to see a lot of opportunity here, and did not see that slippage.

Okay. And then Zane I actually had one last one for you. The new UI that you guys are talking about putting out into the field that customers are satisfied with. Is that the iView product that I keep reading about people rolling out?

No. In this particular case, this will be more of our MPage view, which you may have heard us talk about.

Our next question comes from the line of Michael Cherny with Deutsche Bank

I just wanted to dig into the bookings number a little bit. Obviously, it has been the focus of the quarter. You guys put up stellar bookings, well above your expectations. Can you give us a little more breakdown, especially given the amount of clients -- it looks like you signed about 375 new contracts if I'm reading this file correctly. Kind of where the upside bookings strength came from, maybe some of the clients you necessarily didn't expect to win during the quarter that you did. Is there any more color just around the outsized performance of bookings would be great.

I think, this is Marc, it's really reflective of a very active market in an active and deep pipeline that we've been building. People, and I think, Zane made the point pretty effectively that people, especially as they're looking are at putting solutions and are already getting past, what do I need for Stage 1, because I think a lot of people have kind of their path to Stage 1 figured whether it's their existing supplier or they're doing something new. But I think that Stage 2 and beyond and all the other initiatives are really driving people to get decisions made. So from our standpoint, there wasn't any, as I indicated, it was broad across all of our businesses relative to the bookings success. There wasn't any one area that drove that success. All of it was, everything was above planned and doing well and as we've looked at our pipeline and finish our forecasting work for the upcoming quarter, we see that strength certainly continuing.

Great and then just quickly on the U.K. commentary on the new 2 NHS Trusts, were these trusts you have previously been affiliated with anyway or were these competitive wins? Kind of going forward, I know you talked about improved international markets, but how you think about the U.K. in particular, given it has obviously been a little bit of a noisy situation?

We've had relationships with a lot of U.K. trusts. These were 2 of them that we've dealt with to some extent in the past as the buying becomes more focused at the trust level and they start going out making their decisions, we expect all the work we've down over the last 2 and 3 years by our U.K. team, which has done a great job of bringing people into our London office, envisioning them as to what can be accomplished. Now that they start having the ability of go make their own choices that is we expect that to actually kind of be the beginning of a period of time when we start seeing individual trusts come into our bookings with some frequency. So the 2 we signed this quarter, yes, we had a relationship with them. But we actually kind -- already, because of the program have a lot of relationships in geographies with almost every major trust in them.

Our next question comes from the line of Atif Rahim with JPMorgan Atif Rahim - JP Morgan Chase & Co: If Marc, if I could just ask that previous question in a different way, were those 2 trusts in the South and Southeast slash London region or were they in one of the other regions in the U.K.?

They were in London. Atif Rahim - JP Morgan Chase & Co: Okay. Got it. And plans to expand outside of that, when do you think you could start signing up trust outside of those 2 regions?

At this point, we're working our pipeline, and we'll kind of be able to announce things as they happen, but we really can't talk about that to a great extent on the call today. Atif Rahim - JP Morgan Chase & Co: Got it. Okay. And then on the DeviceWorks business, the gross margin effect is having, can you just talk about how the gross margin are specifically just on that business and how the DeviceWorks business flow through bookings in terms of the magnitude and how fast you recognized the revenue?

Yes. DeviceWorks basically is very similar to our tech resale business. The selling the actual or reselling the actual equipment, or in this case, for example, meds dispensing cabinet resulted in us recognizing revenue and recognizing cost of goods sold. The net margins on those we talked to prior -- are in the single-digit range. So that is going to impact our gross margins. The key for us though is usually those sales will come with it, bringing with it an iBus transaction which is basically 100% or is software, so it brings with it a significant component of that, relative to a bookings, it will depend some -- each item is a little bit different relative to the resale. But for the most part, on the resale of cabinets, that is going to be recognized in revenue when the install happens. So there will be a booking that comes into our bookings and then within a 12-month period the install or revenue recognition or cost recognition will occur down the road. The norm for tech resale, as you know, is it ships in the quarter, revenues in the quarter and usually happens in very short term. You'll see some of these devices that are based on install showing up in our backlog and then rolling out on our backlog, but it will be in the 6 to 9 months timeframe. Atif Rahim - JP Morgan Chase & Co: Got it and what's the size of the iBus software deal in this case?

I don't have that detail in front of me, but normally, you'd probably see it to be 10% of the total revenue of the deal. Atif Rahim - JP Morgan Chase & Co: Got it. And then one last question and I'll jump off on the RevWorks side any update, any new contracts signed this quarter?

Atif, this is Zane. We did in the call, in my comments, mentioned that there was one new RevWorks client this quarter.

Our next question comes from the line of Jamie Stockton with Morgan Keegan Jamie Stockton - Morgan Keegan & Company, Inc.: Thanks guys for taking my questions. I guess real quick on that RevWorks deal, and Mike or Zane, whoever wants to take this, was that a hospital that we using your patient accounting system?

Yes, it was Jamie Stockton - Morgan Keegan & Company, Inc.: Do you feel like roughly that's a prerequisite for a hospital to look at RevWorks as a platform?

I don't think it's a prerequisite for our business model. In fact, it's actually -- I would view RevWorks an opportunity for us to utilize some of our software solutions in that space and use bring in our patient accounting in that space as well. So it's not exclusive.

Yes. We wouldn't expect to just sell only to existing patient accounting clients. We will sell it as part of the revenue of the RevWorks service offering, but that could get us into new places that don't really have our patient accounting. Jamie Stockton - Morgan Keegan & Company, Inc.: Okay. Zane, you mentioned the number of facilities that have received their Medicaid EHR check. I know that those aren't the majority of the stimulus dollars of hospitals are getting, but do you think that for hospitals that maybe don't have their act together, at this point, as far as the stimulus is concerned that, that has gotten their attention? Have you seen any change in sentiment for some of the hospitals are a little further behind as a result of this Medicaid checks?

Great question, Jamie. I think we're beginning to see that. So there are about 11 states that have confirmed plans for the Medicaid space. And we're helping to educate the marketplace in that space. I would say there's not as much understanding of what's going on, but it's actually helping to drive some decisions as well. Jamie Stockton - Morgan Keegan & Company, Inc.: And last question, Marc, on the bookings guidance. Is there anything lumpy in there that we should the expecting when you guys report next quarter?

No. I think that guidance reflects our view of the forecast and contribution across the board. If there was something lumpy, I'd expect that to be upside.

Our next question comes from the line of Sean Wieland with Piper Jaffray.

Can you tell us what percentage of your customers have purchased everything that they need to hit Stage 1 of Meaningful Use?

I've got it, but we can't tell you that.

Sean, that's actually pretty hard because a lot of -- there are many of them that are going to hit Stage 1 that may not have bought everything from us they plan to buy. And if they're going to, if they're going to get there once with none Cerner apps in certain places. Zane, do you have some...

What I would say we're doing analysis with each one of our clients on Meaningful Use and helping them determine what they need to hit Stage 1 and Stage 2 as we believe it to exist today. And so I can't give you the exact percentage, I can tell you we're in the midst of that. We're in the middle of that process. The Medicaid element of this has accelerated some of that need to do that now. So we probably will be able to look at that on a going forward mode to give some additional insight. But we're going through that process right now with each one of our clients.

Okay. So if you can't ballpark it for us today, maybe we can get that from you the next quarter? A ballpark?

Yes, I think the majority of our clients are looking at Q4 '11 as being their target for doing Stage 1, getting into the next fiscal year with the federal government. And that the vast majority of our clients are comfortable they're going to get to that Stage 1 level if they've been a client for any period of time. And the new ones, we're working to get them there as well.

Okay. And second question are you guys following what's going on the Supreme Court reviewing the Vermont prescription data case? And in your view of that decision, I know that there's no decision that's been made, but are there any far-reaching implications for your strategy in how you -- in your business?

Sean, this is Marc. I would admit that I have not been keeping up with that case, since there has been no decision, we wouldn't really have any comments until that time. But so I can't really comment on it right now.

Our next question comes from the line of Stephen Shankman with UBS

I guess in Q1 about 20% -- 26% of new bookings were from outside the core volume, and I think it was a similar number for this quarter. Wondering if you're seeing any changes there in terms of the mix over the past few quarters from larger hospitals versus smaller ones, and specifically as it relates to the new footprint?

Yes, I think relative to the mix of size of clients that are coming to market these days, it's pretty broad I think.

This is Zane. We actually just came through our review of the business and there is demand across all elements of the business. But in the small markets we've talked about in the community market and actually we are seeing the return of some larger IDNs into the marketplace who have made some decisions previously and are now getting uncomfortable with the technology that provider that they put in place. And that's a trend that we anticipate to continue, as actually some of the larger organizations coming back into the marketplace and looking for somebody they believe can take them to Stage 2, Stage 3 and well beyond.

So they're coming back into the marketplace in calendar 2011 or would that be maybe next year?

I think that's actually part of my commentary. I think this is a much broader marketplace than some had expected that it would be a rush for Meaningful Use, and I think this will play out over the next several years.

We're starting to see them show up in our pipeline, and when they show up in our pipeline that usually means a 12 months or so timeframe for them to make a decision, to sign a contract. So I think we will probably look to see more of those beginning in '12 but as Zane indicates, we think that actually can fuel activity after '12 through '13 and '14.

Okay, great. That's helpful. And then switching gears. Just in terms of I guess SG&A and also R&D lines, should we expect a similar kind of step down as we go through the year like we saw in 2010?

Step down being...

As a percent of revenue?

We're continuing to look for efficiencies. Certainly, R&D is a very key element to our success and continuing to invest in new things. But as we continue with our revenue, especially at the levels we're growing at now, it's logical that the R&D, as a percent, declines a little bit over time because we just want to make sure we're investing fully in all the opportunities we have.

But we think we can do that still getting efficiencies on G&A and R&D lines.

Our next question comes from the line of Steve Halper with Stifel, Nicolaus Steven Halper - Stifel, Nicolaus & Co., Inc.: Earlier in the call, you talked about 50 clients, presumably IDN clients, that are using inpatient and outpatient are those customers using PowerChart Office or are you including PowerWorks in that number as well?

Steve, this is Zane. They would be doing a combination of the 2, depending on their strategy for their physicians. Steven Halper - Stifel, Nicolaus & Co., Inc.: Right. So there'll be some element of PowerChart Office and PowerWorks depending on the size of the physician group?

Look, remember Steve starting with -- that's the same solution set regardless whether it's PowerWorks or PowerChart Office that's the same code. But yes, you could have both -- they could run both. They could run one or the other, depending on their strategies with their physicians. Steven Halper - Stifel, Nicolaus & Co., Inc.: Okay, that's helpful. And what about ambulatory on a stand-alone basis? What's going on in that market? Where does Cerner sort of slot in? Are you going for transactions outside of your inpatient base?

Yes, very much so. In fact, the solution is competitiveness is very strong and on a stand-alone basis we're going after both larger practices as well as single practices. Steven Halper - Stifel, Nicolaus & Co., Inc.: What have been some of the changes in terms of code development that have led to some of the success there because PowerChart Office has been around for a while but it was not really that successful at first?

This is Mike, Neal. We have continued to make investments in our ambulatory physician application. In fact, over the last year, there was significant investment made to improve the usability and workflow. And as a result, our competitiveness has dramatically improved in that space. I think many of the companies that survey our clients are showing statistically that it's improving as well. So we think we're making good progress there.

This is Marc. I think given the time we're going to cut off the questions. I've asked Neal to see if he has any closing comments for us.

Great. Thanks, Marc. This is Neal. So my job is pretty easy when you guys all just grill Naughton here on our business models and see if you can find a hole. I'm going to give Marc a passing grade here. He did a great job. So in summary, I mean, I think my view is probably going to be similar to yours. We're in a good strong marketplace. We are getting good activity and we actually see the activities that will extend from our installed base, from our current clients. We're highly competitive in the new clients that are entering the marketplace for acquisitions. Part of that new buying as just got discussed here a second ago, some of our dear competitors installed base because there is a window here where it's going to force a lot of decisions. And there's probably not too many install bases that are in great shape. We are in great shape. We are not the only one, but there's a lot of people that put together not real strong companies over the last 20 years. And there's kind of strength test being applied here. And then you all got it, frankly globally, most -- because we've always focused on the clinical side, there is a strong marketplace outside the U.S. and you kind of throw a dart at it and when we tell you the story what's happening in those countries. And for the most part, we're -- it's a good story. So we've built this company through innovation. We've been working for -- I've been -- I'm the oldest one in the room here. So, spent most of my adult life working on digitizing the core of healthcare. We are clearly articulating to you all of this activity in the first half of this decade is creating -- is basically digitizing the content of healthcare. And we think there will be big fundamental changes outside of that, we have several ways of narrating that those kinds of changes, but the concept of a new middle is one of those. And then I think we are demonstrating to you today here, too, that there's a great team and this company has got a lot of talent. And the talent is broad and deep. So we have a combination of experience. We also have a passion and a passion to innovate. So those are my closing observations and comments. And with that, I'll wish you good evening. So thank you for your time, too.

Ladies and gentleman, thank you for your participation in today's conference. That does conclude the presentation. You may disconnect. Have a wonderful day.