Sezzle - Q3 2021
October 29, 2021
Transcript
Operator (participant)
Thank you for standing by, and welcome to the Sezzle Inc. third quarter results conference call. All participants are in a listen-only mode. There will be a presentation followed by a question-and-answer session. If you wish to ask a question, you will need to press the star key followed by the number one on your telephone keypad. I would now like to hand the conference over to Mr. Charlie Youakim, your CEO. Please go ahead.
Charlie Youakim (CEO and Executive Chairman)
Thank you. Good morning, everyone. For those of you joining from elsewhere in the United States, good evening, and welcome to the Sezzle 2021 third quarter presentation. As mentioned, my name is Charlie Youakim. I'm the CEO and Executive Chairman of Sezzle, and I will be leading the presentation today. As I think you'll see, Sezzle continues to grow at a tremendous rate in an exciting sector. I actually just attended an industry conference, which was exciting in its own right, given we haven't had a conference for nearly two years. At that conference, you could really sense that our company has tiered up in our importance level in the financial services industry. That lift should only help us in the years to come. We're happy to be here today to give you a rundown of our third quarter results.
I'm joined on the call by our CFO, Karen Hartje, our president, Paul Paradis, and our head of IR, Lee Brading. We'll now move on to our presentation. If you haven't already had the chance to pull it up, you can find our presentation posts on the ASX website if you'd like to follow along. Let's get started. Please move ahead to slide three. As most of you listeners know well, our mission is to financially empower the next generation, which is leading our company towards the path on additional financial services for our young consumers. Our first expansions in that direction are Sezzle Up, which is our credit building platform, and our long-term installment offering, both of which will be important products for us for years to come.
Our core product improves consumer financial freedom through simple budgeting accomplished through interest-free installments, and we support the financial freedom of our customers with our core product in Sezzle Up. We focus on making our product a great one for our merchants too. Simple, easy, and effective is the mantra for our SMB clients. Our seamless integration via e-com and payments platforms make it easy for our merchants to add Sezzle as a payment method. Once added, we can dramatically improve their results by increasing sales, conversions, and basket sizes. We also drive traffic to our merchant partners via our app and our website. All of these benefits make our product incredibly sticky for merchants. Not only are we sticky for the merchants, but we're also growing virally. You can see that virality in our results on page four.
We now have over 3.2 million active consumers and over 44,000 active merchants who collectively have transacted $1.6 billion in processing volume through Sezzle over the past 12 months. Our product is sticky with consumers too. They love us. We do random surveys of our consumers to measure their love of their product. The 30-day trailing consumer net promoter score stands at 85. Yes, 85. That love leads to more engagement and a stored potential energy for Sezzle, for as we offer new products, our consumers will trust our ability to deliver. Our top 10% of active customers transaction average at 49 times per year, and collectively, our customers have downloaded our app 2.7 million times. On slide five, we'll probably display some of the new merchant partners that we've signed.
Big Fern represents a significant test in the grocery segment. California Pet Pharmacy represents a similar test into pets and vet care. We also signed some great name brands in our core segments with Lacrosse, TFC, Market America, Bellami, and Rogers Sporting Goods, to name a few. These signings have helped us maintain steady growth in new MS as we head into the fourth quarter. On slide six, you'll see that our SMB virality has continued as well. We added over 4,000 active merchants in the quarter. Just to put that into perspective, we only had around 5,000 active merchants on the platform in total when we IPO'd on the ASX about two years ago. That virality continued because of our continued excellence in execution and the results we give our SMB partners.
Our 30-day net promoter score for our merchants isn't quite as amazing as our consumer score, but it does sit at 71, which is also a tremendous result. On slide seven, we wanted to talk about our partnerships accomplishments over the quarter. Our partnership approach is a differentiator in our space which we believe will set us apart and help us grow at a greater pace in the years to come. First, Alliance Data and Bread. The launch of this partnership represents the continued growth of our long-term platform. We now have two great partners for that product with Ally and Alliance Data, both working with us to create a superior long-term installment offering.
Our partnership with Bread is exciting because their product has an outstanding user experience in a mobile environment, and because we're going to be able to unlock a lot more of our SMB volumes via this new partnership, as we will be the merchant of record for Bread. We'll also be able to unlock more potential through Bread's strength in additional merchant categories. The second partnership we wanted to lay out is with BigCommerce. BigCommerce is an incredibly powerful e-commerce platform. They've had great success in scaling their offering, and we believe that our preferred partnership with them will benefit Sezzle tremendously. Through the partnership, Sezzle will get preferred placement for new retailers on the BigCommerce platform, and we'll also be working closely with BigCommerce on enhancing the payment offerings for existing merchants on the platform by offering Sezzle as a new buy now, pay later option for them.
Finally, Sezzle Capital, which we created through our Wayflyer partnership, allows us to help our merchant partners grow their businesses. It's a win-win type of situation because as we help our merchants grow, we grow. Slide eight exhibits our continued growing consumer engagement. Our consumers love using our products. The user base is growing while the engagement also continues to grow. We have now had 33 consecutive months of increased repeat usage and now sit at 92% of transaction volume coming through our repeat customers. Our campaign activity accelerates that engagement. We've got two campaigns planned for the holiday season with Sezzle Bingo and Sezzle Home for the Holidays. These types of campaigns are inexpensive and fruitful at fostering positive engagement. Slide nine highlights the recognition we've received from our key stakeholders. I personally love that we're viewed as the best buy now, pay later app for students.
We couldn't pick a better award. We'll continue to work hard for our stakeholders, which should keep this type of recognition coming. Let's skip ahead to slide 10, where we wanna talk to you about an overview of our international progress. Canada, just a little over two years past launch, has become a big success for us. At this point, it's at scale and growing, accounting for over 6% of our total UMS. Our role in Canada now is to continue the expansion and push for product parity with the U.S., with additions like Sezzle Up and the long-term installment loans into that product suite. India is also scaling with some impressive quarter-on-quarter growth rates as we continue to push for complete product market fit.
We're currently on a similar user and merchant trajectory to the U.S. and Canada at the same stage there, which is exciting. The main challenge in the geography is adapting our products to the existing payment rails in a way that offers a great user experience. UPI is a payment rail that represents a good portion of consumer payments in India, almost replacing the need for a debit card. We're currently in a waiting game for UPI automated payments, which will allow us to improve our user experience there tremendously. We'll continue to scale and improve as we push for product market fit. EU is also scaling with some initial enterprise merchants like the Hut Group, which are creating synergies with our existing core markets of the U.S. and Canada.
Our product is now live in Germany, France, Spain, and Italy, and we're exploring expansion into the U.K. We're still under a year from product launch there, so we'll likely need all of 2022 to fully understand how large of a market the EU will be there for us. Finally, Brazil just gotten started. We're currently building a roster of pilot merchants and expect to launch our product there by the end of the year. I'm gonna hand off the presentation to our CFO, Karen, so that she can now take you through our financial updates, which completes the presentation. Karen?
Karen Hartje (CFO)
Thank you, Charlie. Before we start the financial update, please note that our financial statements are prepared in accordance with U.S. generally accepted accounting principles. Third quarter financial results for 2021 and 2020 are unaudited and presented in U.S. dollars. Starting on slide 11. We are reporting continued strong growth in UMS and total income. Third quarter 2021 UMS totaled $460.7 million, reflecting a 102% increase over third quarter 2020 UMS of $228.2 million and a 12% increase over second quarter 2021. What's driving the growth in UMS? It's the 3.2 million active consumers, 44,400 active merchants, 92.3% repeat usage, a record for the 33rd straight month.
Third quarter total income was $28.5 million, reflecting a 79% increase over the same quarter last year. Total income included $24.5 million in Sezzle income and $4 million in account reactivation fee income, which comprised 14% of total income. As a percentage of UMS, total income was 6.2% for third quarter 2021, down from 7% in third quarter 2020 and 6.7% last quarter. The merchant rate compression reflects the first full quarter of large-scale enterprise merchant fee income. On to slide 12. Third quarter 2021 total transaction expense was 2.5% of UMS, compared with 2.7% for third quarter 2020 and 2.3% last quarter.
The most significant element of transaction expense is payment processing, which dropped from 2.1% of UMS in third quarter 2020 to 1.9% in third quarter 2021, driven by ACH migration and lower processing rates due to increased scale. While down year over year, third quarter 2021 payment processing was up 0.2% of UMS from last quarter. This increase was driven by a shift to card for all first installments, including ACH. As a result, the percentage of payments processed via ACH decreased from second to third quarter 2021, but it still improved year over year. We remain committed to strategies to drive down processing costs, including continued payment migration to ACH. Moving to slide 13.
As a percentage of UMS, third quarter provision expense totaled 2.3%, down 110 basis points from 3.4% last quarter. When we spoke to our second quarter results, we committed to reducing loss rates into the low 2% range by fourth quarter this year. We are pleased to report that we achieved this goal in third quarter 2021. During the quarter, we executed against new collection strategies, driving higher recoveries of previously charged-off receivables. Our risk management team also made fundamental operational changes during the quarter, including the change to require a card payment for all first installment payments and changes to line assignment and line management strategies to reduce risks. Onto slide 14.
Net interest expense in third quarter was 25 basis points of UMS, reflecting significant improvement from the 50 basis points for the same quarter last year and 5 basis points improvement from last quarter. The year-over-year reduction in funding costs was due to the new lower cost, $250 million debt facility closed in February 2021. Moving to slide 15. We believe we are well capitalized for the future. At the end of September 2021, cash totaled $46.9 million, with $5 million drawn against our line of credit and unused borrowing capacity of $87.8 million. This compares with our June 2021 cash position of $60 million, with $21 million drawn against our line of credit and unused borrowing capacity of $56.8 million. Some merchants elected to defer their transaction accounts payable in exchange for interest.
This amount totaled $78.6 million as of September 30, 2021, compared with $79 million as of June 30. In July of this year, we received an investment of $30 million from Discover, providing incremental capital to execute our growth strategies along with our $250 million line of credit. I'll turn it now back to the moderator for your questions.
Operator (participant)
Your first question comes from Phil Chippendale from Ord Minnett. Please go ahead.
Phil Chippendale (Technology Analyst)
Hi, good morning, guys. Thanks very much for your time. First question, just around the bad debt expense, obviously a huge improvement in the quarter. Karen, I think you mentioned improved recoveries, and then the card being required for ACH. If we go back to August, you spoke about the challenges of the non-optimized integration with some of the larger retailers. I suppose my question is, has that yet been resolved? If not, then does that mean that when you've made amazing improvements without the optimized integration, and so does that mean when we look forward that potentially there's some further improvement there?
Charlie Youakim (CEO and Executive Chairman)
Pick up.
Karen Hartje (CFO)
Sure. Yes, Phil, first of all, we talked about how we plan to have the direct integrations with our large enterprise merchant clients. It would be in the first half of next year. It's gonna be a while before those direct integrations happen. When they do, we certainly do expect that we'll see improved quality of the customers that are using our product.
Phil Chippendale (Technology Analyst)
Okay. Thanks.
Charlie Youakim (CEO and Executive Chairman)
As I said, in the meantime, we feel like we've got a good handle on the situation now, but the direct integration will undoubtedly help.
Phil Chippendale (Technology Analyst)
Thanks. Karen, just while you've got us. Sorry. The challenges of working time zones are raising their head. Obviously, a bad debt improvement of that level. Were you positively surprised by that sort of speed of that improvement? Certainly, it's well ahead of what you guided to in August.
Karen Hartje (CFO)
No, no, I was not surprised. I'll tell you why. Well, I'm sorry, Charlie.
Charlie Youakim (CEO and Executive Chairman)
No, go ahead, Karen.
Karen Hartje (CFO)
What I was gonna say I was not surprised. The reason was we've always said this is largely within our control. We also talked about last quarter how we've opened up to some of the new enterprise merchants, and we can again, you know, we can control the underwriting not only of our new customers, but of our existing customer line assignment strategies.
Phil Chippendale (Technology Analyst)
Okay, thanks.
Charlie Youakim (CEO and Executive Chairman)
I think it, you know
Phil Chippendale (Technology Analyst)
Karen.
Charlie Youakim (CEO and Executive Chairman)
Sorry. Sorry, Charlie, go ahead. Yeah. One of the key elements of the product I think worth pointing out to everyone is that the turnover. You know, the product that turns over in four weeks, and so we can make rapid changes in how things develop and continue in the future. I think that's one thing we wanna continue to point out to everyone listening in that, you know, we're pretty nimble as a company in terms of the changing directions.
Phil Chippendale (Technology Analyst)
Thanks. Karen, maybe another question for you just on the fee rate. Clearly, we've seen a little bit of a decrease here in the current quarter. Is it fair to think about that decrease as reflecting now sort of the full contribution from your enterprise relationships that you've currently got on foot? Is that a fair comment?
Karen Hartje (CFO)
Yes. Yes, it is. That's what I meant by saying that, you know, this quarter was really the first full quarter where we have these large scale enterprise merchants for the full quarter.
Phil Chippendale (Technology Analyst)
Okay, thanks. Final question, and just back to Charlie. Charlie, you've got two relationships regarding long-term products with Alliance and Ally Financial. Can you explain how that works from a customer perspective? If I'm not a retailer, am I gonna see two offerings there for a long-term product? Yeah, can you just maybe walk through how that works.
Charlie Youakim (CEO and Executive Chairman)
No. Our long-term goal with that product, you know, it's gonna depend on the volumes going through. Our long-term goal is to really create a platform where we can offer each customer, you know, depending on the situation with the merchant in the scenario, the right funding options. That those might be via different providers, you know, depending on the situation. The goal is really to create the widest sweet spot for both the consumer and the merchant to create the best possible result. To get the consumer the financing they were looking for at a reasonable rate and to get the merchant the conversion for the sale of that product. It's difficult to do. If you're a single provider, you generally get boxed in to the type of approvals you can make.
By making it a platform, it allows us to pull in a wide array of potential providers to expand the sweet spot. It's very attractive to the merchants that we talk to, especially enterprise merchants, which should increase our ability to land those big deals because of this platform. I think it'll only get better and better in the future. Ally and Bread both have fantastic products, and we're excited to see where they can take us. The Alliance Data products with Bread helps us a little bit in the near term in that because we're the merchant of record with Alliance Data and Bread, we can expand to our SMB base more rapidly.
That's been holding us back a bit, and now we can really push that forward, which should unlock a lot of latent volume within our systems once that launches.
Phil Chippendale (Technology Analyst)
Okay, great. Thanks very much for your time and great set of results. Thanks.
Operator (participant)
Your next question comes from Chris Brendler from D.A. Davidson. Please go ahead.
Chris Brendler (Equity Research Analyst)
Hi. Thanks and congratulations on the results, and thanks for taking my question. Can I start with the decline in the sort of merchant take rate? Is there an account reactivation or late fee impact there as well, or is that without that?
Charlie Youakim (CEO and Executive Chairman)
I didn't quite understand that. The fee rate, the merchant fee rate?
Chris Brendler (Equity Research Analyst)
Yes. That's including the account reactivation fees.
Charlie Youakim (CEO and Executive Chairman)
Yeah. That doesn't-
Karen Hartje (CFO)
The account reactivation fees are included in total income.
Chris Brendler (Equity Research Analyst)
Right. There was also.
Charlie Youakim (CEO and Executive Chairman)
Chris, are you there?
Karen Hartje (CFO)
I'm sorry you cut out on me, but I think you asked if they are also impacted by the lower merchant fee rate, and the answer would be no. Those are consumer fees.
Chris Brendler (Equity Research Analyst)
No, I'm saying that as credit got better, so if credit got better in the third quarter, there was a commensurate impact on lower late fee income in that rate as well or no? In terms of decline from second quarter to third quarter. Sorry. Didn't get that one off one. Go with that.
Karen Hartje (CFO)
Account reactivation fees are lower. That's correct.
Chris Brendler (Equity Research Analyst)
Okay. On the ADS relationship, the 40,000 merchants, is that a subset of their base that could grow larger over time? Maybe just talk about the potential opportunity. It sounds like a pretty significant integration, and I guess how fully we'd be integrated into those merchants that are working with ADS.
Charlie Youakim (CEO and Executive Chairman)
Chris, we still have to do a bit of work with our SMBs to get them. You know, there's some more information we need to gather from them, but we're gonna do that in an automated way to get that onboarding process rolling out. Once they do that, I think those things considering the 41,000 merchants, not all of them have the right product set to take advantage of long-term. You know, a lot of these are retailers selling fashion and apparel, which may not be a long-term fit. There's gonna be a subset that have the right product mix that'll be seeking out a long-term product. I think there's
Chris Brendler (Equity Research Analyst)
Okay.
Charlie Youakim (CEO and Executive Chairman)
You need to take that down a bit in terms of the potential there. The thing worth mentioning, as this product continues to improve, it's gonna enhance the ability for our sales teams and marketing teams to go after new merchants that do target long-term. I think there's gonna be a bit of unlocking latent volume within the existing SMB base, but there's gonna be a probably even bigger impact in the future in terms of what our sales team can go after.
Chris Brendler (Equity Research Analyst)
That makes a ton of sense. That's great. One last one for me. Sorry, I started to touch on this earlier. The potential for adding additional financial services products, how important is that opportunity in terms of a timeline? Thanks so much.
Charlie Youakim (CEO and Executive Chairman)
Yeah. It's tough to say on timeline. We try to do them as soon as possible. You know, we're always thinking and moving fast, of course, because we're a younger company that's more nimble than most companies. Yeah, I think in the long-term vision, it is very important. First of all, these customers are looking for additional financial services, and they're not getting the services that they really need. We view it as an opportunity. We view our product as a tremendous customer acquisition product. You're getting paid as you acquire consumers. So you've got a profitable business acquiring consumers, and you know after you work with these consumers that we're the perfect entry point into financial services. We're the perfect training wheel product.
We treat them very well, and they can't get too far over their skis. As we educate these consumers and get them into credit building, we know that they will be looking for additional financial services as they age, as they grow. We want to be there for them. If we can do that helps us increase lifetime value of the customer. As our lifetime value of customer increases, we can expand our network more rapidly. I think that's a virtuous circle that we're really thinking about, and we'll be pushing towards that in the years to come.
Chris Brendler (Equity Research Analyst)
Sounds fantastic. Thanks so much.
Operator (participant)
Once again, if you wish to ask a question, please press star one on your telephone and wait for your name to be announced. Your next question comes from Sanjay Sakhrani from Citi. Please go ahead.
Sanjay Sakhrani (US Equity Research Department)
Thanks. I'll ask three questions. First one, would you be able to share how big enterprise is as a percentage of your UMS right now? As a what percentage share?
Charlie Youakim (CEO and Executive Chairman)
Sanjay, that's something we've broken out at this time in terms of the breakdown.
Sanjay Sakhrani (US Equity Research Department)
Just, I think, a little follow-up question as well. I mean, you have one full quarter of contribution, but would it be fair to assume that the contribution is increasing as you head into the second quarter? We should be thinking the merchant take rate is kind of mid-single-digit decline.
Charlie Youakim (CEO and Executive Chairman)
I think we are pushing deeper and deeper into enterprise. You know, that's a goal for us. What we've talked to everyone about is that as we do that, we do expect to see some temporary dips in that merchant fee rate. We expect to see it come back up as the users start to utilize our platform to shop at our merchant, our complete merchant network. It's difficult to know the exact sort of timeline of those, you know, ebbs and flows in merchant fee rate. We are starting to see a lot of enterprise merchants take up the product. I think, you know, maybe in the year to come, there might be a little bit of movement in that number.
You know, but it's just really difficult to say which way it goes. Because it's the timing of enterprise merchants coming on is really the key to that.
Sanjay Sakhrani (US Equity Research Department)
Got it. Secondly, Charlie, can you just explain that, you know, debit, credit swap out with ACH? It looks like, you know, losses were higher on the ACH. Is it just because of the delay or just need to understand, why the swap out?
Charlie Youakim (CEO and Executive Chairman)
I had a little trouble picking that one up, Sanjay. Karen, do you want to take that?
Karen Hartje (CFO)
Yes. The reason we made the change to require card for the down payment is that with ACH, there is a timing that could potentially allow for first payment default. Whereas with card payment, you eliminate that risk.
Sanjay Sakhrani (US Equity Research Department)
Got it. Okay. That makes sense. Lastly, Charlie, just on, you know, your view of being a platform, right? How do you think about the net transaction margin, or the gross profit margin for, let's say, a Bread transaction, right? Is that dilutive or accretive to your current set of, sort of, margins?
Charlie Youakim (CEO and Executive Chairman)
It really depends on the mix. If it ends up being more SMB volume coming through that, it's incredibly accretive, I would say. You know, that's where the power of SMB really lies. As you push the product into enterprise, you know, I'd say it's probably right par for the course where we sit today. What's so fantastic about that product is that it all drops to the bottom line. You know, this is a product that the only cost for us is the software that supports it, which we-
Sanjay Sakhrani (US Equity Research Department)
Got it.
Charlie Youakim (CEO and Executive Chairman)
We're already building anyway. It's opening up new opportunities for us. You know, I was just at the conference that I mentioned, and we're talking to a big potential that we wouldn't have even been talking with if we didn't have the long-term product. I know we've made a great choice in adding this product, and I think it's really going to help us and be a tailwind for us in the years to come.
Sanjay Sakhrani (US Equity Research Department)
Got it. Okay. All right. Thanks. Thanks for taking my questions.
Operator (participant)
The final question comes from Hal Goetsch from Loop Capital. Please go ahead.
Hal Goetsch (SVP)
Hi. Could you give us a good definition of what a merchant of record is in dealing with Bread and Alliance Data Systems and how it facilitates onboarding these smaller merchants? Thank you.
Charlie Youakim (CEO and Executive Chairman)
Yeah. Great question, Hal. To help understand what that means is, you know, when a merchant comes on the platform, it's the merchant of record in the system. The underwriting from the long-term provider has to go all the way through to the merchants. If you can imagine with 41,000 active merchants or 44,000 active now, it takes quite a bit of time to turn on merchants. What we're able to do with Bread, because Sezzle is the merchant of record, as long as we're collecting the necessary KYC, AML information from our merchants, we're able to make the decision to turn on merchants for Bread.
Sezzle will sit in the middle as merchant of record, which allows us to turn on merchants quite a bit faster because we've already done the underwriting work on the merchants that come through. That's where the important distinction comes in in terms of this platform.
Hal Goetsch (SVP)
I could follow up on that. Does it mean the onboarding of a small merchant to offer a credit program that is almost similar in some ways, but probably different than, say, a large retailer that has a giant credit program with a major bank. This could be for small merchants, probably not even possible, and this makes it very possible and very quickly. You could do it quickly then as well. That kind of
Charlie Youakim (CEO and Executive Chairman)
I think that's spot on.
Hal Goetsch (SVP)
Yeah.
Charlie Youakim (CEO and Executive Chairman)
That's spot on. I think a lot of these small retailers might have trouble getting access to a product like this. Typically, it might take a lot of scale for them to get there, and now we're able to provide it to them.
Hal Goetsch (SVP)
Okay. What do you think the onboarding time would be for, your team to help them basically piggyback your merchant of record status?
Charlie Youakim (CEO and Executive Chairman)
Really, this is a few items they have to upload into our dashboard.
Hal Goetsch (SVP)
Okay.
Charlie Youakim (CEO and Executive Chairman)
in order to satisfy the requirements. It's really just an additional step. We really try to focus on simple, easy, and effective for the SMBs because we know they wanna be self-service. The first time they go through our platform, they can get live, you know, with our core platform in under 24 hours. This will just be a second step where we'll ask the merchant, "Hey, if you wanna enable this long-term option, please upload a couple of additional options or elements." Once they do that, we're able to make the second investigation for underwriting and allow us to turn them on at that point.
Hal Goetsch (SVP)
Okay. Last follow-up. If all these small merchants, you are the buy now, pay later provider, and Bread is gonna bring with you the line of data, like the longer installment loan-type capabilities. Is that the whole plan, have a suite of offerings for these merchants from buy now, pay later in terms of weeks all the way up to installment loans?
Charlie Youakim (CEO and Executive Chairman)
Exactly. That's our plan. We wanna have a full spectrum product for any merchant that applies Sezzle to their checkout. We think it's a really powerful offering, not just for SMB, but especially for enterprise.
Hal Goetsch (SVP)
Okay. That's terrific. Thank you.
Charlie Youakim (CEO and Executive Chairman)
You got it.
Operator (participant)
There are no further questions. I'll now hand back to Charlie for closing remarks.
Charlie Youakim (CEO and Executive Chairman)
Thank you. I wanted to make a statement here. I know it's a bit early, but first off, I wanna wish everyone a happy holiday season. We're probably not gonna talk again until after it. It's gonna be an important fourth quarter for us, so you can count on us working hard to make it a great one. Additionally, it's gonna be great to see the restrictions lifting here on COVID. It's been a long time since we've been to Australia, and we can see the light at the end of the tunnel. We're looking forward to getting back over there to see all of our friends and supporters. We wanna thank you for your time today. Have a great rest of your day. Thanks.