Axcelis - Earnings Call - Q4 2020

Transcript

Speaker 0

Good day, ladies and gentlemen, and welcome to the Axolus Technologies Call to discuss the Company's Results for the Fourth Quarter and Full Year twenty twenty. My name is Jerome, and I will be your coordinator for today. At this time, all participants are in a listen only mode. We will be facilitating a question and answer session towards the end of the conference. As a reminder, this conference is being recorded for replay purposes.

I would now like to turn the presentation over to your host for today's call, Mary Kuma, President and CEO of Axon Technologies. Please proceed, ma'am.

Speaker 1

Thank you, Jerome. With me today is Kevin Brewer, Executive Vice President and CFO and Doug Lawson, Executive Vice President of Corporate Marketing and Strategy. We are all participating in this call remotely, so I would like to apologize in advance for any technical difficulties. If you have not seen a copy of our press release issued last night, it is available on our website. Playback service will also be available on our website as described in our press release.

Please note that comments made today about our expectations for future revenues, profits and other results are forward looking statements under the SEC's Safe Harbor provision. These forward looking statements are based on management's current expectations and are subject to the risks inherent in our business. These risks are described in detail in our Form 10 ks annual report and other SEC filings, which we urge you to review. Our actual results may differ materially from our current expectations. We do not assume any obligation to update these forward looking statements.

Good morning, and thank you for joining us. As a result of the strength of the overall electronics market and the growth of the Purion product family in 2020, Axcelis delivered its highest annual revenue in the last fifteen years. To achieve this, our employees managed through many difficult logistical challenges brought on by the geopolitical environment and the continuing pandemic. I'd like to thank our employees for delivering these results while continuing to serve our customers and adhering to safety protocols. This challenging environment has continued into 2021.

But despite this, we are planning for another year of growth at Axcelis. The semiconductor industry is forecast to gain strength across all markets, and the Purion product family is poised for significant growth. Our fourth quarter financial performance was in line with our updated increased guidance. Revenue for the fourth quarter was $122,200,000 with earnings per share of $0.43 gross margins of 43.4% and a year end cash balance of $204,200,000 EPS was favorably impacted by a previously unrecognized tax benefit of $0.11 per diluted share. For the full year 2020, revenue was $47,600,000 with an EPS of $1.46 Our aftermarket business, or what we refer to as CS and I, once again contributed significantly to our revenue and gross margin.

CS and I revenue was $58,000,000 in Q4 and $181,000,000 for the full year 2020. This strong performance was a result of high fab utilization, the growing Purion installed base and additional buying activity from one customer as a result of the current geopolitical situation. The growing mature process technology market continues to be an area of strength for Axcelis, with 75% of Q4 shipments going to mature foundrylogic customers. The other 25% went to memory customers, with NAND accounting for 15% and DRAM 10%. For the year, the mature process technology market accounted for 71% of shipments, with memory accounting for 29%.

China continues to be a strong market for Axcelis. The geographic mix of our system shipments in the fourth quarter was China 56%, The U. S. 20%, Korea 18% and Taiwan 6%. For the year, our geographic split was China 54%, Korea 28%, The U.

S. Five percent, Europe 3%, Japan 2% and Taiwan 8%. We expect the memory market will improve in 2021. But as a result of the continued growth in the mature markets and the strength of Axcelis' product offerings in these segments, we expect that the mature markets will account for approximately 60% to 70% of our total shipments in 2021. During the fourth quarter, the U.

S. Government placed Chinese foundry customer, SMIC, on the entity list, meaning that licenses are required for all Axcelis U. S. Shipments to SMIC. We have applied for licenses and are prepared to ship these tools against customer requirements in the first quarter.

As a result of the uncertainty related to these licenses, we are providing wider than usual guidance. For the first quarter, we expect revenue of between 118,000,000 and $138,000,000 gross margins of approximately 40%, operating profit of between 11,000,000 and $19,000,000 and earnings per share of between $0.22 and $0.42 Continued growth of Purion products is the key to achieving our long term business models. We shipped the first Purion 200 revenue tool to a second customer for use in power device manufacturing. The power device market is a critical market for Axcelis. And targeted Purion products for silicon carbide, including the Purion H200, will play a key role in increasing our customer base and revenues in this segment.

We currently have six Purion evaluation tools in the field focused on supporting growth towards our $650,000,000 business model. During the first quarter, we expect to close one of these evaluations and ship an additional new one, resulting in a balance of six evaluation systems in the field as we head into the second quarter. Before Kevin reviews the financials, I would like to summarize four key takeaways. First, the mature process technology market is very strong and growing, and Axcelis is the ion implant market leader in this segment. Second, memory is expected to recover in 2021 and will be additive to our strong mature process technology performance.

Third, China will continue to be an important market for Axcelis, driven by many customers, both domestic and multinational. And fourth, the Purion product family is extremely well positioned to support future growth and our $650,000,000 business model. Now I'd like to turn it over to Kevin to discuss our financials and some operational details. Kevin?

Speaker 2

Thank you, Mary, and good morning. Xcelis delivered exceptional fourth quarter and full year twenty twenty financial performance. Thanks to the continued outstanding work of our employees and supply chain partners. Strong execution across the board and significant leverage in our business model delivered 140% increase in operating profit on revenue growth of 38%. During this ongoing pandemic, the health and well-being of our employees remains a top priority.

We are doing our best to create a safe work environment for everyone at Exel. Pandemic related protocols that were implemented during 2020 remain in place for 2021. Our pandemic response team will continue to closely monitor these actions and update as required. We remain focused on our target business model and expect 2021 to be another growth year for Accelerate. We will continue to invest in products, evaluation tools and infrastructure needed to support our $650,000,000 target model.

Turning to fourth quarter and full year financial results. Q4 revenue finished at $122,200,000 and above our updated guidance compared to $110,400,000 in Q4 system sales were $64,200,000 compared to $70,200,000 in Q3. Q4 CS and I revenue finished at $58,000,000 compared to 40,200,000.0 in Q3. The unusually high CS and I revenue in Q4 was driven by fab utilization, a growing Purion installed base and significant buying in the quarter by one of our customers. We expect Q1 CS and I revenue of approximately $42,000,000 and recommend modeling with this quarterly outlook for 2021.

Full year 2020 revenue was $474,600,000 compared to $343,000,000 in 2019, an increase of 38. Systems revenue was $293,600,000 compared to $202,600,000 in 2019, an increase of 45%. CS and I revenue was $181,000,000 compared to $140,400,000 in 2019, an increase of 29%. Q4 sales to our top 10 customers accounted for 81.5% of our total sales compared to 76% in Q3. Free customers were at 10% or above in Q4, the same as For the full year, 4% of revenue came from our top 10 customers with two at 10% or above.

Q4 system bookings were $131,500,000 compared to $26,400,000 in Q3, with a Q4 book to bill ratio of 1.98 versus 0.37 in Q3. Backlog in Q4, including deferred revenue, finished at $93,200,000 compared to $45,100,000 in Q3. Q4 combined SG and A and R and D spending was $38,900,000 or 31.8% of revenue compared to $34,300,000 or 31% in Q3. Q4 combined SG and A and R and D spending was higher than forecast primarily driven by variable compensation expense. SG and A in the quarter was $22,600,000 with R and D of $16,300,000 In Q1, we expect SG and A and R and D spending to be approximately $36,000,000 and run at this level through the remainder of 2021.

Q4 gross margin was 43.4% and above our updated guidance. Q4 gross margin was driven by higher than forecast CS and I revenue and continued cost out activity. Full year gross margin was 41.8% compared to 42% in 2019. We are guiding Q1 gross margin of approximately 40% driven by a less favorable mix of products and the closure of an evaluation system. Gross margins will fluctuate quarter to quarter based on product and customer mix, the number of evaluation tools closed and the percent of revenue contribution for our accretive CS and I business.

We have made solid progress on gross margin improvements with cross sell initiatives, new Ferium product extensions and growth in our CF and I business. Our target models reflect additional gross margin improvement from incremental volume, higher sales of Ferium product extensions and continued savings from lean manufacturing and value engineering. Operating profit in Q4 finished at $14,100,000 compared to $13,900,000 in Full year operating profit was $68,000,000 an increase of 140% compared to twenty four point two million dollars in 2019. We are guiding Q1 operating profit of between 11,000,000 and $19,000,000 Q4 net income was $14,700,000 or $0.43 per share compared to 10,800,000.0 or $0.32 per share in Q3. Net income and EPS were favorably impacted by a previously unrecognized tax benefit of $0.11 per diluted share.

Full year net income was $50,000,000 or $1.46 per share compared to $17,000,000 or $0.50 per share in 2019, resulting in a greater than 190% year over year increase. We are guiding Q1 earnings per share of between $0.22 and $0.42 Our Q1 guidance reflects our current assessment of the potential impact on our business from the coronavirus and the export control situation with a specific customer in China, which we will continue to closely monitor. Q4 cash finished at $204,200,000 compared to $212,700,000 in Q3. We announced $100,000,000 share repurchase program for 2021. Q4 receivables were $86,900,000 compared to $45,200,000 in Q3.

Q4 inventory ended at $161,000,000 compared to $159,700,000 in Q2. Q4 inventory turns excluding evaluation tools finished at two point zero compared to 1.8 in Q3. Q4 accounts payable were $24,000,000 compared to $24,300,000 in Q3. We finished 2020 with strong momentum and are excited about the prospects of recovery in the memory automotive market. We continue to make the necessary investments in our products and the infrastructure needed for our $650,000,000 target model.

Our customers continue to have high expectations for our Purion products, which we intend to achieve. Thank you. And I'll now turn the call back to Mary for closing comments.

Speaker 1

Thank you, Kevin. We are pleased with our fourth quarter financial performance as well as our exceptional overall performance in 2020 and are looking forward to another year of growth in 2021. Axcelis has a competitive Purion product line, a broad and diverse customer base, a strong balance sheet and a dedicated team of employees. These are the strengths that will continue to drive our growth toward our $650,000,000 model and ultimately to a market leadership position in ion implantation. With that, I'd like to open it up for questions.

Jerome?

Speaker 0

Your first question comes from the line of Patrick Ho with Stifel. You may now ask your question.

Speaker 3

Thank you very much and congrats on the really nice finish to the year and the outlook for 'twenty one. Mehran, maybe first off in terms of the market environment, you're talking about a memory recovery in 2021. Compared to three months ago, do you see the magnitude of that memory recovery being greater than it was three months ago? And I guess how does that potentially impact from their standpoint the wafer sort of build out as well as how many tools you may be shipping to the memory market in 'twenty one?

Speaker 1

Okay. So Patrick, we've been saying now for quite a while that we expect a recovery in memory in 2021. I think if you take a look back, if you remember, in Q3, we actually shipped no systems to any memory customers. In Q4, that had increased to 25%. And we're actually saying that we expect memory to account for 30% to 40% of our systems revenue in 2021.

And that's in comparison and up from 29%, which is where we ended for full year 2020. So we are starting to see some signs of the memory recovery, and we expect it to continue throughout the remainder of the year. Doug, I don't know if you have anything you want to add to that.

Speaker 4

I'm sure. Thanks, Mary. Patrick, the recovery that we're seeing, this past quarter, it was split 1510% for DRAM and NAND. And we expect, we're seeing activity on both fronts, both NAND and DRAM. And so as we've been saying about this particular memory recovery, we see it as more of a longer term, you know, couple year kind of recovery versus what we saw back in 'seventeen and 'eighteen where it was very steep.

There'll ultimately be more area under the curve in terms of growth as a result. And we're poised to do well there with our position. The percentages of memory versus mature in our projections are primarily due to the fact that the mature markets are just so active right now. And that's become a much bigger piece of our business compared to what it was back in 2017, 18 timeframe.

Speaker 3

Great. That's helpful. And maybe as my follow-up question for Kevin in terms of your working capital management, AR obviously was a little bit up, may highlight some of the linearity, but you're also building some inventory. Have you run into any supply constraints on your end as you're preparing for a higher level of shipments this year? Any supply constraints or issues on that front in procuring parts?

Speaker 2

Yes. Thanks, Pat. That's a good question. So I would say the supply chain constraints are what they've been for most of 2020 with the pandemic. Things were tight.

We've continued to drive inventory probably a little ahead of where we needed to be, so that we're not waiting for long lead material. And as things kind of tightened up in different spots in 2020, we were able to move things around a little bit. We do have, in some cases, multiple suppliers. So it's about the same now. I think the pandemic related issues are improving.

But as you point out, the industry is ramping, so there's additional pressure coming from for a different reason now. But all in all, I would say, you know, it's, you know, it's it's about what we had to deal with last year, so I don't expect any issues. We're keeping up what we need to do this year ramping.

Speaker 3

Great. Thank you very much.

Speaker 2

Yes. Thanks, Patrick.

Speaker 0

Your next question comes from the line of Craig Ellis with B. Riley Securities. You may now ask your question.

Speaker 5

Thanks for taking the questions and congratulations on a real strong 2020 and finish to the year, Tim. So I just wanted to start with a near term question. It's clear that the company believes that CS and I will move back towards that $42,000,000 level. But within the memory and mature foundry business, can you just characterize some of the gives and takes for the first quarter and help us understand how DRAM versus NAND might be performing to start the year.

Speaker 1

Okay. So oh, go ahead, Doug. You can take it if you'd like.

Speaker 4

Okay. Sorry about that. So Craig, we're seeing activity on both fronts. And as you know, we're more dependent on wafer start additions. And so we are seeing activity from both sides.

It was split relatively evenly in the fourth quarter. From as we look at the first quarter, we're seeing activity in both fronts. So it looks good. From a mature standpoint, the mature markets are very active, have been throughout 2020 and continue. And we don't see that slowing down in 2021.

Speaker 5

That's helpful. Then maybe go ahead, Mary.

Speaker 1

Was just going to give a little bit more color on the mature markets. Last year, image sensor and the general mature foundry business was very strong, it continues to be into 2021. Automotive showed weakness, but we do see it recovering. And that's going to be positive for the power device market, which is going to be positive for Xcelis. And then as Doug said, we're seeing activity on both sides of memory.

So we're getting to the point where we see most of our markets and market segments beginning to hit on full cylinders.

Speaker 5

That's great. And then longer term, the company commented on memory being 30% to 40% of systems. Can you just characterize the demand visibility that you have through calendar 'twenty one in different parts of mature foundry and with DRAM and NAND specifically so we can get a sense of how far out order visibility extends now?

Speaker 1

Yes. I mean, I think we have very good visibility into the first half of the year. And things are starting to become more clear moving into the second half of the year. But we are seeing changes in terms of customer timing, both pull ins and some delays in some cases, not really because of the market. I think what I would say, I would characterize mostly as some slight delays in fab readiness.

So we expect that's normal for us, though. I don't think we're seeing anything that's necessarily out of the ordinary at this point in time. So as I said, first half visibility, good. Second half, starting to improve. And I think customers do realize that given the ongoing challenges with the pandemic and in some cases, the geopolitical situation, they may need to lock in on their forecast and notify suppliers maybe a little bit sooner than they normally would just because they want to make sure they get in the queue for their systems, given some of the lead times that are out there right now.

Kevin just commented that things seem to be manageable at this point in time. But you add a ramp on top of a pandemic, and you can get some issues at some point moving forward. So customers are aware of that.

Speaker 5

Absolutely. And then one final one before I hop back in the queue. It's a multi parter and more in the political realm. The first part of it would be, can you provide us any color on the optics that you have into the license granting process? And then on the other side of that, I think it was within the last two days that a number of the very large U.

S. Chip companies were speaking to the new administration and really expressing the need for a lot more federal government help, building out The U. S. Chip supply industry. If something were to happen in that regard, what would it mean for Axcelis?

Speaker 1

Well, we're monitoring all the geopolitical the situation and the issues, obviously, on an ongoing basis. And so we've got our legal counsel watching it carefully. We're working with outside trade attorneys. We're very involved with our industry trade group to make sure that our voice is heard as well as to better understand the situation. Obviously, investment in semiconductor fabs would be a positive thing.

And in The U. S, we would love that. We think that, that would be a real upside for the U. S. Government, the country and for Exelis.

In terms of some of the other geopolitical issues, there's really not a lot to say about what's going on with the licenses. I think that's maybe what you were poking at a little bit, Craig. We've applied for the licenses. We are prepared to ship systems and parts against customer requirements as soon as we receive the licenses. And we just haven't heard anything back yet.

As far as we understand, we don't believe that anything significant has changed based on the change in administration. But again, we're all basically just waiting.

Speaker 5

That's helpful. Thanks so much, Mary. Your

Speaker 0

next question comes from the line of Christian Schwab with Craig Hallum. You may now ask your question.

Speaker 6

Hey, guys. This is Tyler on behalf of Christian. Thanks for letting us ask a couple of questions. First question, I think you alluded to it, but maybe a little more color. What's your expectation as far as the timing of the memory recovery through the year?

Are you expecting kind of a step up here in Q1? Or just a gradual improvement through the year? Any color on timing would be

Speaker 0

great. I

Speaker 1

don't think we necessarily have enough visibility. I mean I just alluded to the fact that there's visibility in Q1 that leads us to believe that there is a memory we have visibility into the first half, I'm sorry, and we which leads us to believe that a memory recovery will occur in 2021. But we don't I don't really we just don't have a view at this point in time, and we're not really going to forecast that in terms of putting numbers around it. So as I mentioned before, we're seeing an improvement in the percentage of systems that we're shipping out to memory customers. And we do expect that as a percent over the course of the year to increase versus last year, so 30% to 40% versus 29%.

But in terms of the timing, we're just going to continue to watch talk to our customers and watch the trends in the market.

Speaker 6

Understood. That's very helpful. Second question then. I believe previously, your comments were that at some point in 2021, expected to reach a run rate of your $550,000,000 annual model. So I guess given where Q1 is guided and your expectations for improving memory market and improving automotive market, I'm wondering if it's reasonable to think that the full year 2021 is going be close to our approach to that $550,000,000 annual target.

Speaker 2

Yes, Tyler, it's Kevin. So obviously, it's in our line of sight right now with the guide we just gave. So you're right. We had kind of been saying at some point, we hit the run rate in 2021 and then into the 2022 event. We're not providing full year guidance at this point.

But as you point out and as I just said, it's in our line of sight at this point. And the $650,000,000 model, as we continue to say, is a couple of years after the $5.50. But obviously, we're setting up well, coming out of the gate in Q1.

Speaker 6

Sounds great. Very helpful. That's all from me guys. Thanks.

Speaker 2

Thank you.

Speaker 0

Your next question comes from the line of Tom DeFolloway with D. A. Davidson. You may now ask your question.

Speaker 7

Yes, good morning. Thanks for the question. Mary, you said that you expect to close one of your eval tools during the quarter. And I'm wondering, what is your thought as far as the process of starting to ramp up production tools based off of the eval over the next few quarters?

Speaker 1

I think the prospects are actually very good. I will actually say that for this evaluation, we have already shipped some repeat orders to that customer prior to the evaluation closing. So we definitely have been selected as PTOR for this specific application. We've shipped some repeat tools, and we expect to ship some additional tools moving forward.

Speaker 7

Great. And then Kevin, when you look at the margin profile, how big an impact does both the closing of the eval tool have on the margin in the quarter? And then when you look at the top and the bottom of your guidance range, what is the impact of the margins there?

Speaker 2

Yes. So I mean, evals always have a negative effect. Some evals have higher cost than others. So that certainly moves in a number of eval. I think what's going on in Q1 is we've got the eval going out.

We've also got a higher mix of high current tools going out, which overall is good for the company because that's a large market and that's one of the areas we want to continue growing is high current. But maybe I could help you a little bit more. If I look at the full year right now, Tom, I'm seeing full year gross margin in 2021 similar to what they were in 2020. And that includes a number of evals closing out. As Mary said, we've got one closing on the other one going out, which is six.

And I think as you recall, typically, we would have two or three. So we've been saying for the last couple of quarters, there's a high number of evals and more going. Those are sitting on the margins. And the other thing, we're going to see a lot of growth this year coming from systems versus CS and I, right? So as the systems grow that's going to create a CS and I, that can pressure things a little bit.

But the good news is, with all that in there, growth in systems, all these evals, I, at this point, expect the gross margins full year to finish similar to last year. And our target model is 42 to 43% on 550%. So we're just off of that a tiny bit. And if you look at, try to do the math and figure when we get there and think about cost out initiatives, maybe we get there a little bit sooner than we thought. Some of these initiatives still have to kick in.

So I from a gross margin point of view, I feel really good where we are right now and expect this year to continue to drive cost out and get the value into that and more current product extensions. Those are all things we need to get to our model. And then the six fifty model, margins are up to 44 to 45, and that's a couple of years later. So we're again, we're in good shape, Tom.

Speaker 7

Great. No, that's very helpful. Thanks for the questions.

Speaker 2

Yes. Thank you.

Speaker 0

Your next question comes from the line of Mark Miller with The Benchmark. You may now ask your question.

Speaker 8

Thank you for the question. Congrats on your progress. Were there any shares repurchased last quarter?

Speaker 2

There were not, Mark. So the program that was in place last year was suspended in Q1. They did not put that back in place. And then the Board approved the new program for this year, dollars 100,000,000. And as a reminder, the prior program was $50,000,000 and we had spent about $25,000,000 of purchasing shares prior to putting that on hold.

Speaker 8

You've indicated a recovery in the auto sector. I'm just wondering, is that starting to accelerate? Because there's been a lot of talk about chip shortages facing the auto manufacturers. And I'm just wondering if that's really starting to accelerate significantly.

Speaker 4

Mark, can you repeat the question? I heard the chip shortages, but I wasn't sure what the front end was.

Speaker 8

Well, there's been reports the auto manufacturers are facing chip shortages. I'm just wondering, you said there was recovery going on the auto. Is that starting to really accelerate as the quarter went on?

Speaker 4

We started seeing it pick up last quarter. We see it in a few different areas. We see it in the power device area which started to strengthen last quarter. And we see that continuing to grow throughout the year. The image sensor market is a big piece of the automotive world these days.

And that's been strong. It's hard for us to tell exactly what's going to automotive versus phones and other image sensor applications. And then the general foundry, know, general mature foundry, is what's really all in the press these days, where everybody's talking about $0.20 parts keeping lines down. That whole foundry, mature foundry market has been strong. Utilizations in that segment have been very high.

And so that's been a big piece of our business over the course of 2020 as people bought all the consumer electronics and PCs and so forth. And that will continue now that you start layering automotive on top of it.

Speaker 7

Your

Speaker 0

next question comes from the line of Quinn Bolton with Needham and Company. You may ask your question.

Speaker 9

Congratulations on the nice results. Just wanted to ask, maybe I missed it, but did you say which of the six eval tools had been accepted for revenue recognition or will be accepted for rev rec in the March?

Speaker 1

No. We didn't say which one would be accepted in Q1. And we didn't talk yet about the new one that will be going out in the quarter either. So we'll give more color on that as we progress through the quarter and into next quarter.

Speaker 9

Blake, I think it was Tom's question that you've already received repeat orders for that eval tool that was closed.

Speaker 1

We have. I guess the only additional color I'll give around it is for an image sensor application. And we'll just leave it at that.

Speaker 9

Thank you, Mary. The second question I had is from the CS and I strength in the fourth quarter. It looks like perhaps you're not subject to export controls for that part of the business. Just wondering if that's the right read. And given the very strong level of $58,000,000 is there a risk that that customer doesn't purchase for some time and CS and I revenue could actually come in below $42,000,000 at some point as that customer digests inventory of spares?

Speaker 2

Yes. I'm not worried about that. I think that the customer who did a lot of buying is also running at a very high utilization rate. And we have shipped a number of tools there and I think they obviously they're probably putting more parts and meat in the shelf, but I think they're going to continue to buy anyway. And as the business grows around this, had strength

I spiked out the one customer, but there's continued strength across the board. So I think the $42,000,000 number that we put out there to model to is the right number to be using. And I don't see any downside risk to that.

Speaker 9

And just lastly, Kevin, for the $100,000,000 share repurchase program, can you give us any sense, is that going to be under 10b5-one? Will you be sort of in the market on a consistent basis? Are you going to try to be opportunistic? Any sort of thoughts on how that $100,000,000 buyback is executed this year?

Speaker 2

Yes, Quinn. So we'll use the 10b5-one, which is similar to what we did on the program last year that we were executing under. And beyond that, whether it was any opportunistic or not, I mean, it's it'll be a Board approved grid that we buy to. And I think the Board and management realized that we should be returning cash to shareholders through some type of program which we agreed as a share repurchase. So I'm not going say how much we're going to spend because, right, I mean, we put it out there, we could spend it all or a good portion of it.

I guess what I'll leave you is we realize that we need to be utilizing this program. So, again, that Quinn, that's No.

Speaker 9

I know you're you're limited in. Yes, yes, no, I know you can't give us too much on timing or amounts, but thanks for the color you did provide. And that's it for me. I'll go back in the queue. Thank you.

Speaker 2

Yes, thanks.

Speaker 0

All right. We have no question at this time. This concludes the Q and A portion of the call. I will now turn the call back over to Mary Puma, who will make a few closing remarks.

Speaker 1

I'd like to thank everyone for joining us today, and we hope to talk with you virtually at upcoming investor events. We will be participating in Susquehanna Financial Group's tenth Annual Technology Conference in March. We expect to conduct several virtual NDRs during the quarter as well. We thank you for your continued support, and please stay healthy.

Speaker 0

This concludes the presentation. Thank you for your participation in today's conference. You may now disconnect. Good day, everyone.