GTY Technology Holdings Inc.
Q4 2021 Earnings Call Transcript

Published: 17 Feb 2022

[Operator:]

Ladies and gentlemen, thank you for your patience. Welcome to the GTY Technology Holdings Inc. Fourth Quarter Earnings Conference. My name is Louisa (ph) and I will be operating your call today. If you wish to ask a question, you will have the opportunity to say at the end of the presentation. . And now I have the pleasure of handing over to your host today, John Curran to begin. So, John, please go ahead.

[John Curran:]

Thank you. Good afternoon, everyone. I'm John Curran, GTY's CFO. And I'd like to welcome you to our Fourth Quarter and full-year 2021 Earnings Conference Call. With me on today's call is TJ Parass, GTY's CEO. We will be presenting slides on today's call and encourage you to view the presentation found on our website at www.gtyechnology.com. Please note that our earnings release is also available on the GTY website, and contains additional information about our financial results. Any forward-looking statements we made in the earnings release or any that we may make during this call are based upon information that we believe to be true as of today. Things often change, however, and actual results may differ materially from those projected or anticipated. Please refer to our cautionary statements in the earnings release under the heading forward-looking statements. You should also refer to our SEC filings, including our most recent Form 10-K and our subsequent SEC filings for a list of risk factors applicable to GTY. Including risks associated with COVID-19. As you will hear in our comments, the pandemic is impacting our business today. And for an undetermined time into the future. During the call, we may refer to non-GAAP financial measures if we believe that are useful to investors, or if we believe it will help investors better understand our results or business trends. You can see a reconciliation of our non-GAAP financial measures to their nearest comparable GAAP financial measure in Exhibit 2 of the earnings release, and in the appendix of this slide deck. With that, I will turn the call over to TJ.

[TJ Parass:]

Thank you, John. Good afternoon, and thank you all for joining us. For those that are new to GTY, GTY provides cloud-based platforms that help government organizations transform the way they engage citizens and manage their operation. Similar to the private sector, numbers have been moving away from heavy, monolithic on - prem solutions to modern cloud and SaaS applications based on a lower initial purchase price, and the back, they don't require large implementation timelines. This trend has been a decade in the making, but it's really started to accelerate in recent years. We are still in the early innings of governments migration to the cloud. Included in our primary target sectors are municipalities and counties, colleges and universities, K-12 school districts, public healthcare agencies, public utilities like water and power, transportation and transit, state governments, and federal agencies. As of today, we have over 1,900 customers and approximately 400 amazing staff across the business units. With both numbers increasing weekly, as leaning into growth. To add some color to the size of our opportunity, in 2021 state and local government in the U.S. was expected to spend just under a $120 million in IT. Total IT spending grew at a healthy 7% for state and local government, and within that, cloud spending grew at more than twice that rate, as more organizations continue to shift workloads to the cloud. As our customers are starting to modernize their infrastructure, GTY is well positioned to capture the opportunity to transition to the cloud represents. Let me unpack that a bit for you. Our best-of-breed product suites provide budgeting, grants management, permitting, procurement and payment solutions. Combined, these product suites give GTY a strong starting position to capture the enormous opportunity ahead. Our go-to-market brands are on the right. All of our solutions have three broad characteristics that position us for success. First, they are cloud and largely SaaS. This means highly recurring revenue streams with remarkably low churn, often multiyear contracts, strong gross margins and predictable cash flows. Second, each of our product suites were created specifically for government's unique requirements and are considered leaders in their respective functional areas. This leads to high win rates against older gov-tech competitors as well as against horizontal players that often struggle to meet the compliance or government-specific feature requirements. Finally, combined, our product suites allow us to access the full spectrum of sizes and segments of our customers. From 10,000 to 1 million in higher price points, and across our eight sub-sectors for small municipalities, all the way up to large state governments and federal agencies. With that context for the newcomers of GTY, let's turn to our results. I am thrilled to report that GTY's fourth-quarter performance was a strong finish to what was a strong year for the company. We're seeing all levels of the government embrace the business operating on financial benefits from moving to the Cloud. This trend drove great demand of our best-of-breed Cloud product suites. In fiscal 2021, we believe the continued trend of governments moving to the Cloud puts us in a great position to generate strong growth for the foreseeable future. Let me start with a quick overview of our financial results for both the full-year and fourth-quarter. For the full year, we reported total revenue of $60.4 million, up 26% year-over-year. And this was underpinned by recurring revenue of $46.5 million, up 28% year-over-year. And an annual recurring revenue base of $51 million up 23% year-over-year. For the fourth quarter, we reported total revenue of $60.6 million up 27% year-over-year and recurring revenue of $13 million up 24% year-over-year. The core strength of our business is our ARR, which remain robust over the quarter yet again. Though our ARR growth rate of 23% in Q4 was slightly below our recent quarterly trend, it remains very strong. More importantly, we have been able to deliver consistently solid mid 20s ARR growth for nine consecutive quarters and expect our ARR growth to accelerate in 2022. Turning to bookings, Q4 was in line with Q3, but did not grow as expected since a few deals slipped into January. I'm pleased to report that one of those larger deals has already closed in January, which provides a solid base as we start 2022. As we have stated in the past, the exact timing of deals is somewhat hard to predict, but we are seeing a strong pipeline of opportunities and a solid momentum in the market. In total, we added 59 new clients in the quarter for a total of 295 in clients in 2021. Our new clients include wins across all eight of our target sectors as well as many customer expansions. Additionally, the average ARR per customer is consistently growing up 4% quarter-over-quarter and 15% from the same time last year. I want to take a moment to highlight some of the more impactful new clients from the quarter. Our CityBase business unit continues to see transaction volumes increase as the impact of the pandemic continues to subside. And our customers continue to adapt to more virtual or touchless activities. Most recently, we announced the deployment of our self-serve kiosks in two of New York City's five boroughs to improve the self-service payments options within the city's business centers. Our cloud-based budgeting tools, Questica and Sherpa, have been selected by a wide range of organizations, including Orange County, Florida, Mercer County, California, and Colorado Spring Utilities. Additionally, we had almost $1 million up selectivity in the quarter, which highlights the expansion opportunities we have with our existing clients. Our permitting platform, Open Counter, continues to add functionality and features in our internal configuration tooling that improves the speed, consistency, and reliability of our deployments. A few notable wins in the quarter were Colorado Springs and Polk County, Florida. As we head into 2022, we see a number of opportunities that are expected to use upper funds for their purchase. Our grant management platform, eCivis, continues to move up market from small nonprofits to larger state and local governments. During the quarter, we had solid customer wins with city of Philadelphia, city of Grand Junction, Colorado, Solano County, California, city of Denton, Texas, and an upsell of Sonoma County, California. Finally, our procurement platform, Bonfire, successfully won an within IndyGo, otherwise known as Indianapolis Public Transport Corporation. We are extremely pleased about four of GTY's businesses have relationships with different entities within the city of Minneapolis. This latest win was not across all opportunity. However, having said that, our reputation precedes us as we respond to these RFQs and that is a result of a solid customer experience and reputation from our other business units. During the quarter, we had a material expansion with the Ontario Colleges Purchasing Managers Association, that expanded Bonfire's use under an umbrella agreement to nine additional colleges, bringing all colleges in Ontario under one agreement. Other significant customers in the quarter include the city of Tallahassee, Florida, the government of Barbados, University of Texas, Austin, and the Utah Department of Transportation. Before I discuss our outlook for 2022, I want to highlight the 3 primary drivers that are accelerating the digital transformation within governments. While the common perception is that government lags behind private sector, which is true, they're catching up and started accelerated digital transformation. First and foremost, as we exit the pandemic, all levels of government had the budget surpluses from improved tax revenues along with additional financial support from the CARES Act and Alpha Funding. Most importantly, there will be deadlines on the spending that we expect to spike in technology procurement in 2022. We have all heard about the current labor challenges facing organizations today and the difficulty in attracting and retaining competitive workforce. Historically, public sector entities have had a more richer employee base and they have experienced the sharp increase in employees retiring over the last year or two. While in the short-term, staffing shortages may create some challenges over the medium to long-term, it will accelerate the adoption of cloud technology as leaders look to improve productivity, and younger tech-friendly employees demand modern tools. As information technology becomes a backbone persistent engagement, Chief Information Officers are being elevated into more strategic roles, which is accelerating their modernization efforts and represents a massive opportunity for native cloud-based platforms. We saw a similar trend over a decade ago in the private sector when businesses realized that their information technology infrastructure was vital to not only increasing operational efficiency, but increasing sales and enhancing customer service. This emergence in the public sector will impact our go-to-market strategy and lead to larger average contract values. Turning to outlook. As we look towards 2022, we are excited about the opportunities in front of us, which will lead to acceleration in our ARR growth. Our main focus is expanding our sales capacity and enhancing our go-to-market motion that will allow us to execute our expanding pipeline. During the second half of 2021, we added a net of 23 sales and marketing staff and expect to hire more in the first half of 2022. We will take some time for these new team members to ramp up the full capacity, but we are expecting them to contribute later in 2022, and to be fully ramped up heading into 2023. One of our recent hires was at the corporate level, a new Chief Growth Officer, James Ha, who is dedicated to expanding and enhancing our go-to market. James's immediate focus is to continue the expansion of our sales and marketing teams, as he co-ordinates the best practices between all of our business units. In addition to this work, chain believe spending a considerable amount of time and partnerships and our cross-selling plans. They also welcomed Catharina Geraud's, our new head of HR, Catharina is highly focused on attracting the right top of GTY and helping us to continue to add to our strong group of staff. Our business unit leaders are noticing a sharp uptick in procurement activity. For example, in the first nine months of the year, one business unit attracted six state enterprise RPs, but in Q4, there were nine RPs, many more expected in the first half of the year. Another business units pipeline that's tracking above 40% larger than our recent years. Mostly due to accelerated interest in GTY's solutions and expansion of our sales teams. As noted earlier, we are seeing budget surpluses at all levels of the public sector and ARPA funding is providing additional financial support. We expect these factors will cause a spike in technology procurements in 2022. Public sector entities have reallocated and we anticipate will continue reallocating budget dollars earmarked for something else that can be paid for with ARPA funding, freeing up budget dollars for technology infrastructure spending. We're already seeing it in a number of small closed deals and a large number of deals in the pipeline. We are addressing a number of the hiring challenges we experienced in the latter part of 2021 and are now starting to feel results. Our investments in recruiting and new leadership have led to solid improvements of retention and recruiting. Turning to our customers experience. Staffing shortages continued to be a challenge but as a short-term measure, we're helping them with that challenge and also speeding up implementations by providing consulting services as needed to our customers. On the positive side, this generational shift in public sector employees will give rise to a new level of tech fluid leaders that will move additional obstacles to adopting digital government strategy. As noted, we believe we are in the very early stages of a dramatic shift in how the public sector provides services to its citizens. In conclusion, we are excited to have multiple tailwinds supporting our business and look forward to executing on our growth initiatives in 2022. Thank you. Back to you, John.

[John Curran:]

Thank you TJ. As TJ mentioned, Q4 was another excellent quarter highlighted by solid revenue growth and success in hiring new sales and marketing as well as R&D talent to our team. For Q4, our GAAP revenue increased 27% to $16.6 million compared with $13.1 million in Q4 of 2021. On a non-GAAP basis, revenue was $16.7 million for Q4 of 2021, compared with $13.2 million in Q4 of 2020, an increase of 26%. A reconciliation between our GAAP and non-GAAP results is included in Exhibit 2 of our press release, and in the appendix of our slide deck. We'll provide a more detailed explanation of the change in revenue on a subsequent slide. Our fourth-quarter 2021 GAAP gross profit was $10.1 million or 61% margin, compared with $8.2 million in Q4 of 2020, or 62% margin. Our fourth quarter non-GAAP gross profit increased to $10.6 billion or 63% margin compared with $8.5 million or 65% margin in Q4 of 2020. Our mix of revenue and some one-time costs negatively impacted our margins year-over-year. Turning to our operating expenses. Our total GAAP expenses was $31.1 million and include a goodwill impairment charge of $15.8 million. Our fourth quarter non-GAAP operating expenses increased by $1 million or 9% compared with Q3 of 2021, primarily related to additional headcount in R&D, sales, and marketing. Our fourth quarter 2021 GAAP operating loss was $21 million compared with a loss of $8.5 million in Q3 of 2021, and a loss of $11.1 million in Q4 of 2020. Our fourth quarter non-GAAP operating loss increased to $1.4 million compared with $100,000 in Q3 of 2021, driven primarily by increases in operating expenses throughout the quarter. Consistent with previous quarters, we wanted to provide a little more color on the change in non-GAAP revenue. As you can see in this chart, our recurring revenue grew by 11% on a quarter-over-quarter basis and grew by 24% on a year-over-year basis. Adjusting for seasonality in our payments business, our quarter-over-quarter recurring revenue grew by 5%. Services and other decreased 20% on a quarter-over-quarter basis but increased 34% from the year-ago period. As you may recall, in Q3 2021, we recorded $1.2 million in one-time revenue, primarily associated with the DTE Energy Kiosk installation, which provided a significant boost to our services and other revenue in the quarter. Adjusting for this one-time revenue, our services and other revenue increased 9% quarter-over-quarter. Our service revenue can vary from quarter-to-quarter due to the timing of large projects. And we expect professional services to decline as a percentage of revenue as our base of recurring revenue continues to grow. Other revenue includes sales of kiosks and software license sales that we also expect to decline as a percentage of revenue over time. Recurring revenue growth should continue to be higher in percentage in dollar terms than service and other revenue as we continue to forecast growth in our base of subscription business. Turning now to our cash flow, we started the quarter with $15.3 million and ended with $13.3 million in cash. Our cash burn from operations was approximately $1.8 million this quarter, driven primarily by an increase in our operating expenses in the quarter and income taxes. The change in working capital was positive for the quarter, primarily due to the timing of invoicing and collection. We also paid $520,000 in interest. Based on our current forecasts for 2022, we believe we have sufficient cash to support our growth initiative, as well as their ongoing operations through 2022 and beyond. We also recently updated our S3 shelf registration, and an ATM agreement to give us flexibility to accelerate operational investments and to make potential acquisitions if we see opportunities in the market. Turning now to our outlook for the first quarter and full year of 2022. For the first quarter of 2022, we expect total revenue to be in the range of $15 million to $15.5 million or approximately 15% year-over-year growth at the midpoint. From an operating loss perspective, we expect a loss to be in the range of $3 million to $3.5 million for the quarter. For the full year 2022, we expect total revenue to be in the range of $71 million to $74 million or approximately 19% year-over-year growth at the midpoint. From an operating loss perspective, we expect our operating loss to be in the range of $12 million to $15 million dollars. 2022 will be an investment year, and we expect to onboard and ramp the number of sales, marketing, and development resources throughout the year. This should result in improvements in our bookings as we go through the year, but we expect revenue improvements will be delayed into 2023. To help investors better understand the benefits of our investments, this year we've added a forecast for ARR, which is the leading indicator for revenue. We expect ARR will be in the range of $63 million to $66 million, or approximately 26% growth at the midpoint. Finally, from an operating cash flow perspective, we expect Q1 2022 in the full year 2022 to be negative. For the first quarter of 2022, we expect the burn be slightly higher than the first quarter of 2021 as a result of increased hiring. For the full year 2022, we see operating cash flow be similar to the full year 2021. With that, I would like to turn things back to TJ.

[TJ Parass:]

In summary, we are very pleased with our fourth quarter with GAAP revenues up 27% in the quarter and ARR growing 23% year-over-year. As we enter 2022, we are feeling good about our market opportunity and look forward to increasing our investments that meet the needs of our customers in 2022 and beyond. I'm continuously amazed by the quality of the products we bring it above the sector, our high EMEA scores and loyal customers. Personally, I want to thank all the average for their hard work and dedication and helping bring the public sector into the cloud. With that, I want to thank you all for your time today. Operator, would you please open the line for questions?

[Operator:]

Of course. Our first question of today comes from Jeff Van Rhee of Craig - Hallum Capital Group. Jeff, please go ahead with your question.

[Jeff Van Rhee:]

Thanks for taking my question, guys. First, I guess you touched on pipeline and I think you gave some snippets there. Can you roll that up holistically? Give a broader sense of the magnitude of the overall pipeline, preferably quantify. Give us a sense of how much that's grown and then I got several follow-ups.

[TJ Parass:]

Jeff, are you done? Go ahead, John. Sorry.

[John Curran:]

[TJ Parass:]

Yeah. I'll give you the -- go ahead. Sorry.

[John Curran:]

Yes. So from a quantification standpoint, Jeff, we're not prepared to kind of shares its dollar value, but rough order of magnitude increase over prior year, would be certainly nowhere to 20%.

[Jeff Van Rhee:]

Okay. And then on the bookings front, again, I know you don't quantify. You commented the effect that you had one push out. Can you give a sense of how big that one was put -- the -- pushed out and already closed? And maybe more importantly, just bookings. If we can't have it quantitatively -- at least qualitatively was Q4. The total bookings in Q4 were larger than Q3.

[John Curran:]

So, first part of the question, the size of the deal was over a $1 million dollars. So just right around $1.1. That deal closed first half of January. Bookings were essentially flat Q3 to Q4.

[Jeff Van Rhee:]

Okay. That's helpful. And then, you commented on the professional services, obviously, the linearity or flow there can be highly unpredictable. Can you give us a sense on how you're thinking about services for Q1?

[John Curran:]

Yes, we're anticipating -- it's an excellent question, Jeff, thanks. We're anticipating services will be lighter in the first quarter by about $0.5 million, and it's just simply timing of large implementations. We had a couple of really good implementations in the second half that helped our services revenue in Q3 and Q4, and it's more of the middle-market business will be the core of our services business in Q1.

[Jeff Van Rhee:]

Okay. Last from me then, I -- just on the sales side, I know you counted in several cases, you got a new head of HR and you're very, very focused on offsetting the great resignation with capacity additions. Where did you end up in terms of overall percentage, either headcount or capacity additions and sales. If I missed it, forgive me, but I didn't hear that. And just some commentary about current pipe and what you're seeing on sales recruiting.

[TJ Parass:]

Sure. Yes. Thanks. Jeff, good question. Yes. So Q2 last year, we announced we are going to add about 20%, that's about 23 people. We -- I'm sorry, about 20 people. We actually added about 23 people in the end at the end of Q4. Overall added, I think, a net 33 people for the year. So made some good progress and we certainly ended up where we wanted. This year we're looking to add another, I think, 40% and other quarter to 50 people. So we think that's right in line were able to do last two quarters.

[Jeff Van Rhee:]

Okay. Good. Thanks for taking the questions.

[TJ Parass:]

Thanks, Jeff.

[Operator:]

Thank you for your question, Jeff. Our next telephone question comes from Joshua Reilly of Needham & Company. Joshua, please begin.

[Joshua Reilly:]

Hi there. Thanks for taking my questions. Maybe starting out on gaining some more color on the improvement in demand over the course of 2021, how would you characterize the improvement in the second half of the year. Was it a pretty material step-up in terms of demand improvements? And then has there been any impact to overall demand due to Omicron here in the first quarter. I know you mentioned that a couple of deals slipped, were those deals specific or would you characterize those as macro related flips?

[TJ Parass:]

In a way I would answer, tackle the Omicron question first. I would say the Omicron was in -- around our area, but nothing we would point a figure to as a deal delay. In this case, we have a large deal, the $1 million deal that closed in January, just missed by a few days and it's just a matter of these large deals. And as we've talked in prior quarters, we continue to -- as our ACVs are going up and we're seeing our deals get larger and larger, those larger deals we're just learning better and better the case of how to figure out when they close. So someone slipped over that. Yes, I don't -- I wouldn't point at Omicron with that. We did think it was -- Omicron was a bit of a glue in the works in terms of some collections and some small things, but we wouldn't hang our hats on any delays related to Omicron. As in terms of Q1, we're not seeing anything specifically pointing to Omicron or anything with that. And I think your second question, Josh was around demand. Second half of 2021, we start to see some more demand with ARPA starting to flow. Our pipeline start to look like they are increasing, which they have been, as we kind of roll into 2022, really no substantial increase in overall pipelines relative to same time last year.

[Joshua Reilly:]

Got it. That's helpful. And then, I think you mentioned on the last quarter that you were expecting roughly 400K in kiosks revenue from that large customer here in the first quarter, was that number in line with your expectations? I know that some of the -- there was a little bit of a pull forward there, what's the dynamic on that?

[John Curran:]

Josh, it's John. The majority of the large customer kiosks, pretty much all of them were delivered in the third quarter. Originally, we thought they were going to be spread and into Q3 and Q4, but that customer was fully delivered in the third quarter. We did see some additional one-time revenue kiosk, sales, and license deals in the quarter as expected.

[Joshua Reilly:]

Got it. And then one more for me. You mentioned again in the presentation about the challenges around hiring salespeople. You have a new leader now in HR. Maybe you could help us understand. What is the profile of the sales hire that you're looking for? And then do you need to make any adjustments to that? Giving them leadership change in HR and just the overall difficulty in hiring tech sales people right now.

[TJ Parass:]

That's a good question, Josh. I think overall, as we look back to 2021, we're pretty happy with the outcome of we had the number the number of people we wanted to hire. I think our HR team and expansion of our recruiting team has worked -- they are working really hard at it. With Catharina now onboard, a lot of focus on looking at what the dynamic is as we come out of the pandemic and what makes for a great workforce. But the profile of our sales people hasn't changed much at all. We're looking from our account executives. We're looking for experienced, 3 years to 7 years, not necessarily need to having government experience so we can train that part. And then our BDRs are up encumbers. They tend to be the ones that feed into our ease, and we're pretty happy with the pipeline of what we've got of recruiting happening right now.

[Joshua Reilly:]

Got it. Thank you. I'll pass the line.

[TJ Parass:]

Thanks, Josh.

[Operator:]

Thank you, Josh. Our next question comes from Rudy Kessinger of D.A. Davidson. Rudy, please go ahead.

[Rudy Kessinger:]

Hey, guys. Thanks for taking my questions. I want to go back to gross margins. I think they were down a little over 3% sequentially, you said there were some one-time costs. Can you just elaborate on that, and how should we think about gross margins for 2022?

[John Curran:]

Yes, Josh shape. Sorry. Really, John. We did see a bit of a dip in our gross margin in the fourth quarter. We did have some one-time costs. An example would be porting one of our platforms over onto AWS. Those costs hit COGS. a bit of a mix of services outside of our budgeting group and those certain professional service margins are lower than those we see in budgeting. So those would be the two primary factors this quarter, we anticipate it getting back in line in the first quarter. Overall, margin expectations for next year will be a little lower than this year by about 2 percentage points, primarily driven by onboarding more implementation resources. So as we anticipate our sales teams coming up to speed, we're going to need to add capacity for implementation. So we do anticipate some interim hit to gross margins as we ramp those guys up next year. Then following you'll get back into the upper 60s as it snaps back.

[Rudy Kessinger:]

Got it. On the sales, going back to what you just said to Jeff's question. Looking at another 40 to 50 heads next year, I mean, you combine that with the 23, you just add it. That's got to be north of 50% sales capacity you'll be adding. Certainly, they are not going to fully impact in 2022, but regarding in 26% ARR growth exiting the year. But with that capacity, if you hit that 40 to 50 additional heads, what kind of potential growth does that set you up for once all those reps are fully ramped?

[John Curran:]

It's about if you add the 20% to the 40% to 50%, that gives us about 60% more capacity coming out of 2022 that we would have had going into 2021. So it's a pretty substantial increase in bookings capacity once those resources are fully ramped.

[Rudy Kessinger:]

Is there a way you could speak to maybe once those resources are ramped, the kind of growth you might be capable of if all those additional reps, that 60% additional capacity are hitting quotas, etc.

[TJ Parass:]

You mean like in 2023?

[Rudy Kessinger:]

Well, yes. And I don't know if it's too early but again, if you're looking for 26% ARR growth in 2022, and that's with these fees, 2023 new reps, not fully yet contributing. I guess I'm just kind of curious how you guys think about what kind of growth you'd be capable of if you add that 40 to 50 this year as well.

[John Curran:]

We're not quite prepared to go that far. It would be certainly North, well North of our growth rates that we're projecting for 2022 exactly how far north. We're not quite ready to go public with that yet.

[Rudy Kessinger:]

Yeah. Fair enough. Just lastly as I've sneaked in. Just payments a pretty good bounce back it looks like just where you at in terms of being fully recovered versus pre-COVID.

[John Curran:]

I would say certain areas we are fully recovered. So when we -- TJ turning his remarks has mentioned property taxes and business taxes, I think those volumes have come back. We do have a certain activity that's more tied to say travel and leisure. Those numbers haven't quite bounced back yet. So I think we still have a little bit of room to kind of get back to what I'll call pre -pandemic norm -- norms. But I'd say we're probably 80% there at this point.

[Rudy Kessinger:]

Got it. Great. Thanks for taking the questions.

[John Curran:]

Thanks, Rudy.

[TJ Parass:]

Thanks, Rudy.

[Operator:]

Thank you, Rudy. We have no further questions from the audience, so on behalf of our listeners today, thank you Mark, John, and TJ for your presentation. I'll now hand back over to John for any closing remarks.

[John Curran:]

Just want to thank everybody for taking the time to join our call, and I hope you all have a great weekend. Thank you.

[Operator:]

Thank you, ladies and gentlemen, for joining today's call. Have a lovely rest of your day. This meeting will now close.