Pluralsight Inc
Q3 2020 Earnings Call Transcript

Published: 8 Nov 2020

[Operator:]

Ladies and gentlemen, thank you for standing by and welcome to Q3 2020 Pluralsight Earnings Conference Call. At this time all participants' line are in a listen-only mode. After the speakers' presentation, there will be a question-and-answer session. Please be advised, today's conference is being recorded. I would now like to hand the conference over to your speaker today, Mr. Mark McReynolds, Director of Investor Relations. Please go ahead, sir.

[Mark McReynolds:]

Thanks, Maria. Good afternoon and welcome to Pluralsight's third quarter 2020 earnings call. Joining me remotely are Aaron Skonnard, Co-Founder and CEO; and James Budge, CFO. Our remarks today may include forward-looking statements, including those about guidance and future results of operations. Our actual results may be materially different based on a variety of factors, including our ability to execute our business during the COVID-19 pandemic, the impact of the crisis on our customers and partners, and government action taken in response to COVID-19 among other factors. Forward-looking statements involve risks and uncertainties and assumptions that are described in our SEC filings. These forward-looking statements are based on our beliefs and assumptions today and we assume no obligation to update any forward-looking statements. During this call, we will present both GAAP and non-GAAP financial measures. Except for revenue, balance sheet amounts, cash flow from operations and billings, all financial amounts discussed are non-GAAP. Unless otherwise stated, growth comparisons are measured against the same period of the prior year. A reconciliation of these measures is included in today's earnings release, which you can find on our Investor Relations website. With that, I'll turn the call over to Aaron.

[Aaron Skonnard:]

Thanks, Mark. Hello, everyone, and thanks for joining us. We're proud of the progress we've made in the quarter while still in the midst of the COVID-19 pandemic. We handily beat our revenue earnings and cash expectations in Q3. And given the strength we see in our pipeline and forecast for Q4, we have confidence in the raised annual revenue and earnings expectations we included in today's earnings release. Q3 billings came in lighter than we had expected due to two factors

[James Budge:]

Thanks, Aaron, and hello to everyone tuning in. In the face of another full quarter of COVID impact, I'm pleased that we were able to sequentially improve on nearly all the results we delivered last quarter. B2B billings grew to $88.6 million and total billings grew to $100 million, our first quarter other than Q4 to have hit nine figures in billings and represents an $11 million billings increase in Q3 over Q2. Our pipeline is strong coming out of a successful PS LIVE, and we are confident that we will achieve our annual goals with another strong Q4; historically, by far our best performing quarter of the year. As a result, we expect to accelerate our total Q4 2020 billings to approximately 12% to 13% year-over-year growth. We continue to expand deeper into our largest customers ending Q3 with 86% more customers with annual billings greater than $1 million. Q3 revenue grew by 20% to $99.5 million, about $4 million over the high end of the range we previously provided. And as expected, our rolling four quarter average gross and net retention decreased. We are replacing pre-COVID quarters in the four quarter average with COVID-impacted quarters. The four quarter rolling average at the end of Q3 from a gross retention was 83% and net revenue retention was 113%, with retention figures from our enterprise business being quite a bit higher than the average. We expect our four quarter rolling renewal rates to begin to expand again in 2021 as we move beyond COVID and see spending patterns begin to return to normal. Our go-to-market investments in Q3 continued to be overweighted toward our enterprise and high-end commercial customers, which resulted in our highest average deal size to date, up about 20% over last year. The trade-off in Q3 was a higher percentage of churn in our smaller accounts, which offset the new high-end commercial and enterprise logos we added in the quarter.

[Aaron Skonnard:]

Thanks, James. To close, I'm pleased with what we were able to accomplish in Q3, and I'm excited for the quarter and the year ahead of us. Our market continues to grow, we've strengthened our platform and offerings for our customers, and we're confident that we'll be able to close out the year with strong momentum to carry us through 2021. We built Pluralsight to help our customers create empowered technology team that drive improved performance. There has never been a time when our products have been more relevant than now. Pluralsight exists to be a trusted partner for technologists and their leaders to build better skills, better ways of working, and better products. I'd like to thank our customers, partners, our community of expert authors, and our team members for their continued support. And with that, I'll turn the call back over to the operator for Q&A.

[Operator:]

And your first question comes from the line of Sterling Auty from JP Morgan. Your line is open.

[Sterling Auty:]

Yes, thanks. Hi, guys. So just wondering, with the billings result in the quarter, but you're still raising guidance. You talked about your confidence in being able to deliver the increase you forecast for the fourth quarter. Maybe can you give us a little bit more color as to the experience in the first month of the quarter or what you've seen after Pluralsight Live and maybe the pipeline and conversion. Just something that feeds into the confidence that you can deliver. Obviously, this quarter you just did 20% revenue growth off of 10% billings growth last quarter, so it's doable. But just help us kind of bridge the gap.

[James Budge:]

Yes. Thanks, Sterling. James here. Couple things I'd highlight. PS LIVE was big. You heard the numbers from Aaron and the number of participants in the pipeline associated with those participants was a huge number. Now, of course, it's a virtual event. We don't know how that's really going to translate into billings, but it's certainly going to help in many ways to our billings expectations for the fourth quarter. It's the best closing event we have for four years running now that we've been running PS LIVE and that will probably be the same result here in the fourth quarter. So PS LIVE is one that I would highlight. And it had some impact, quite frankly, a little more impact on the third quarter relative to the fourth quarter than we previously expected, to be honest. Obviously, we always knew we were going to have to PS LIVE event in October. But what we didn't expect is some of those deals that would have had strong closing event from PS LIV in August that those would slip into the fourth quarter. So still highly confident that we'll get those done coming off of the strong closing event that we now had from PS LIVE in the fourth quarter.

[Sterling Auty:]

Great. And then, Aaron, one for you. With the acquisitions that you've made, it looks like you're building a hybrid model almost in terms of tapping into some of the ILT opportunity. How quickly should we see some of the moves that you've made actually translate into revenue contribution?

[James Budge:]

You'll see it translate pretty quickly, Sterling. The way we recognize revenue with that business is upon delivery of those services and we have several very large enterprise accounts that we're working with right now in Q4 to bring in as new customers for this new offering beyond what already exists in the current customer base. So, you'll see billings will essentially be revenue upon delivery of those services. So, the dynamics of that billing stream is different than what you see in our Skills business. And we have a lot of exciting opportunities already in the queue. And the deal cycle, I would say, is about similar to a Skills deal. It takes about as long to get one of these annual agreements in place and get those programs designed and running, but we've got a lot of momentum already right out of the gate with the acquisition.

[Sterling Auty:]

Great. Thank you.

[James Budge:]

You bet.

[Operator:]

And your next question comes from the line of Saket Kalia from Barclays. Your line is open.

[Saket Kalia:]

Okay, great. Hey, guys. Thanks for taking my questions here. Aaron, maybe for you. Can you just talk a little bit about the competitive landscape? It's a fun question to ask every quarter to see if anything has changed, but I was wondering if you can just maybe connect that, so whether you think the competitive landscape maybe played a bigger role in the third quarter B2B performance, or if this was really just sort of the timing issue with kind of that PS LIVE pipeline.

[Aaron Skonnard:]

No. Thanks for the question, Saket. I think competition definitely played a bigger role in the third quarter than it has in prior quarters, but only in the small business segment. That's where we saw the most logo churn, especially because of the COVID impact on those segments. In some cases, those customers just stopped using any vendor or they switched to a lower-cost vendor. And so, we continue to see that pressure in the SMB segment and our focus remains squarely focused on the high end of our segment, the enterprise and segment specifically. And overall, our win rates remain very high against competitors in our strategic segments and that's where we're laser focused and putting most of our resources today. Our strategy remains the same. We're focused on a vertical, highly differentiated, value-oriented solution where we're helping the largest companies in the world perform complex skill transformations over many, many years. And that's where we're going to continue to be moving forward.

[Saket Kalia:]

Got it. Makes lot of sense. James, maybe a follow-up for you off of Sterling's latter question there. The shift in pipeline -- and by the way, the year-over-year change in pipeline is impressive and I understand the shift from August to October. I expect you planned for that shift. So I'm just wondering here in Q3, was there anything else that perhaps impacted the B2B billings number, excluding that shift from one quarter to the next.

[Aaron Skonnard:]

Not a lot. Definitely a little bit in the SMB side, as Aaron just described. It's probably a little bit more there than we might have expected. But I think we under-anticipated the amount of deals from those closing events from PS LIVE that would shift from Q3 to Q4. So fortunately, those deals are in our pipeline. The pipeline is as strong as it's been in 18 months as far as the weighted pipe relative to our billings expectations, and we feel really good about where we are heading into the fourth quarter for the remainder of the year.

[Saket Kalia:]

Very helpful. Thanks, guys.

[Operator:]

And your next question comes from the line of Hannah Rudoff from D.A. Davidson. Your line is open.

[Hannah Rudoff:]

Thank you for taking my questions today. Just wanted to start off, could you just talk about how much conservatism you're really taking into guidance for 4Q and what you're kind of modeling in terms of churn and willingness to spend on the company side there?

[Aaron Skonnard:]

Yes. It's hard to give you something specific on conservatism, because that would give away all of our secrets here. But I would say this. For every quarter that we have been a public company, since May of 2018, we have over-delivered on revenue. And in the third quarter we over-delivered to the tune of $4 million higher than the high-end of the range that we gave. Not suggesting in any way we're going to replicate that here in the fourth quarter, but I think we have a very consistent pattern in our EPS and in our revenue estimates of over-delivering what we say we're going to deliver, and I don't think that will change in the fourth quarter.

[Hannah Rudoff:]

Great. And then could you talk about on how the cloud partnerships trended in the quarter and partnerships?

[Aaron Skonnard:]

You bet. The cloud partnerships continue to evolve very nicely. Our new cloud lab offering plays right into that. So our conversations with Microsoft, Google and Amazon around cloud enablement specifically is gaining further strength because of the additional strength we now have with our hands-on learning experiences for each of their cloud platforms. So we're excited about what that means for how those partnerships continue to evolve overtime. And with the SIs, we're seeing some really exciting things unfold right now. We've mentioned Accenture in the past, PwC, and others. And we have several very large Fortune 500 accounts where we're working on large-scale cloud transformations, agile transformation, secure micro-services transformations, and we partner with those SIs on those engagements in a very natural way, because they are focused on the talent and human capabilities. We're focused on the tech skills component of it, which is really core to a digital transformation in the end. And during PS LIVE we actually highlighted one of the initiatives that we've been working on with Accenture. There's this thing that they've branded internally Accenture TQ, which stands for technology quotient. It's built on Pluralsight's IQ foundation and it gives Accenture the ability to measure the technology proficiency across all Accenture team members, all 500,000 of them. And this is an initiative that started at the top with the CEO. We worked really closely with their CTO. And now that we're seeing in the success of this working within the company, we're now exploring talk around how we can potentially take this out to some of our shared customers. So, we're really excited about those possibilities. I think that's just one of many examples of what's possible with the SIs over time. So as we look at the SI as a potential channel, it's going to be those types of initiatives around very specific use cases for the enterprise that will likely bear fruit long-term.

[Hannah Rudoff:]

Great. That's really helpful. Thank you.

[Aaron Skonnard:]

You bet.

[Operator:]

And your next question comes from the line of Brian Peterson from Raymond James. Your line is open.

[Brian Peterson:]

Hi, gentlemen. Thanks for taking the question. So, Aaron, I wanted to start with one for you, kind of a industry question. But obviously we've seen a lot change in terms of the pandemic. And if we think about the budget spent on in-classroom training, I think it's fair to say that enterprises across the board are probably not able to do that today. So thinking about the benefit of where their budget dollars have been spent and how that will migrate to different forms of technology. I'm curious, when do you think that happens, right. We're all kind of reacting to the new normal today, but are those conversations happening in earnest right now or does that happen next year? I'm just curious when we'll start to see those budget dollars really shift from a macro perspective.

[Aaron Skonnard:]

Yes, great question. Those conversations are happening right now with some companies. But not more broadly like I'm hearing you referred to as sort of an industry trend. There is still a clear COVID frost in place, but COVID is definitely accelerating the transition away from that traditional ILT model towards the virtual ILT and digital solutions like what we offer with Pluralsight Skills. And now with DI, we have the virtual ILT offering. So, we do see some strength around it now, because some of those companies have to start shifting those dollars and they have to train the new engineers that they're hiring, especially in the large tech companies, the large enterprises, the higher lots of engineers all the time. But I think it's going to be a little bit longer before we see it really kick in, and it really becomes a strong tailwind for the business. And I would expect that that happens sometime in Q1 or towards the end of Q1 based on what we're seeing in the macro environment. We believe we're really strongly positioned to help those companies make that transition and back to the acquisition announcement, that's exactly why we did that, because we believe we can help companies do that transformation and accelerate that transition away from traditional classroom approaches to these new hybrid approaches. And then over the years ahead, we can help them even more fully move into pure digital solutions over time.

[Brian Peterson:]

Right. It's a good segue to my next question. But for customers that may have overlapped for kind of a virtual and classroom learning in the legacy skills platform. How does their value proposition change, right? You think about the idea of maybe facilitating that back in the classroom and being able to reinforce what they're learning there? I'm just curious how you think that changes the value proposition if you can sell both platforms to the existing customer base.

[Aaron Skonnard:]

Yes.

[Brian Peterson:]

Thanks, Aaron.

[Aaron Skonnard:]

Yes, a couple things. You bet. One, they now get to work with a single vendor. They haven't been able to do that ever before; single vendor, strategic relationship, so that's value right there. We can bring the overall cost down for them over time. That's value number two. And three, we can help them strategically design those programs to take advantage of the best of both worlds. The best things they are looking for from the live virtual instruction combined with what we offer in our digital skills solution. So that custom enterprise-centric approach is really the value proposition in the end and being able to be that all in one solution for the customer, and this further differentiates us from the competition. This is an approach very unique to us and our capabilities and drives us even further into that Fortune 500, Global 2000 space.

[Brian Peterson:]

Good to hear. Thanks, Aaron.

[Aaron Skonnard:]

Yes. Thank you.

[Operator:]

And your next question comes from the line of Jason Celino from KeyBanc Capital. Your line is open.

[Devin Au:]

Hi, this is actually Devin on for Jason tonight. Thanks for taking the question. Just one from me just on usage. Could you just touch on kind of the customer usage of the platform in the past quarter and how that kind of compared to first half and maybe in the second quarter? Any notable trends you're seeing in the US and I guess outside the US as well?

[Aaron Skonnard:]

Yes, great question. So, I think as you probably noticed from last quarters, once Free April picked up, there was a lot more people using at home. Our usage metrics, as we've talked about in the past quarters, expanded quite dramatically, and that continued into the third quarter. We actually had more minutes and hours viewed with our B2B customers in the third quarter than any quarter in the history of our business. And to just give you a number around that, 139 million minutes were viewed in the third quarter and that's up from around 125 million in the second quarter, which was massively higher than any quarter we'd ever had before that. So really good usage patterns are continuing. We think that is a great lens into what the renewals might look like as we come into them in the middle of next year and later part of next year. Lots of usage and lots of value in the platform will continue to drive better engagements going forward, higher retention rates, all the goodness that comes from that. Maybe a second metric I can give you as well is we had an incredible number of Skill IQs created in the second quarter. While we didn't surpass what we've achieved in the second quarter with Skill IQ, the third quarter was our second highest quarter ever of creation of Skill IQs. So really good strength across the platform and the view time on our content.

[Operator:]

And your next question comes from the line of Terry Tillman from Truist. Your line is open.

[David Unger:]

This is David Unger filling in for Terry Tillman tonight. Thank you for your time. Appreciate it. A couple straightforward ones for me, just on the SI world. So is there any notable engagement that you're seeing with the existing SIs that are performing above general expectations? Maybe we could just start there.

[Aaron Skonnard:]

With the existing SIs, like I mentioned in one of the prior questions, we're partnering on several large enterprise accounts. These are million-plus ACV accounts for us as a business, and they charge separately for their services as well. I would say, we're sort of in a good, steady motion with that right now, and we're in the talks to deepen those relationships, so we can bring each other more deals in the future, and that's where the discussions currently sit.

[David Unger:]

Got it. So just shifting gears a little bit. The big deal you did last quarter, the seven-figure deal, Flow deal, has that enabled you to increase engagement with some of those larger customers that you're working with?

[Aaron Skonnard:]

Yes, it has allowed us to increase engagement. By engagement, I assume you're meaning engagement of all of our products, both Skills and Flow, unless you want to clarify it for me what you mean. Am I missing the mark on that question?

[David Unger:]

No. You had a big deal last quarter with Flow and it was an existing Skills customer. So, I'm curious if that's kind of gotten people's attention and gotten them excited in your conversations, broadly speaking?

[Aaron Skonnard:]

Absolutely. Okay. Yes, that's helpful. Thank you. It absolutely has. And in that particular case, that was a multi-product account. So we cross-selled from Skills into Flow in this very large bank, and that has driven our relationship with that account much deeper. We're now further into the technology and engineering organization, and we're developing relationships, expanding that sphere of influence in a very significant way. It's also driving deeper engagement across all the technologists within that account who are using both Skills and Flow. It's a good example of our hypothesis in action that by having this large base of nearly 18,000 Skills customers that we can bring them Flow and further deepen the value proposition we can deliver to all of those technologists to really uplift the entire technology workforce within those companies.

[David Unger:]

Okay, that's great. Thank you, guys. Have a great night.

[Aaron Skonnard:]

You bet.

[James Budge:]

Thank you.

[Operator:]

And your next question comes from the line of Stephen Sheldon from William Blair. Your line is open.

[Stephen Sheldon:]

Thanks for taking my questions. I guess, first, can give an update on the rough number of B2B users on the platform now? And then with the increase so far this year and with some of those users coming on a lower price points, when you could potentially drive more monetization of those users? Could it potentially come in the renewal process near the end of 1Q or early 2Q in 2021 given the big jump you saw in those quarters.

[James Budge:]

Yes, great question. So, we're up just over 1.5 million now, Stephen. And that's about 60% to 70% more than the users that we had at the end of the third quarter last year, just to give a comparison there. And as far as the time for up -- so yes, renewal time is always the best opportunity to go have either an upsell in seat counts or an increase in price after they've seen the value there. It'll probably be a little bit easier with renewals coming up as we move beyond COVID. I'm not sure we're quite there yet in Q1. But certainly, where the bulk of our renewals come forward in Q3 and Q4 next year, we would expect to have conversations where the kind of the artificially low price points we gave to our customers during COVID, that those price points would start to rise back up over time. So it's probably more of a second half story. But absolutely, we expect to bring price points back up.

[Stephen Sheldon:]

Got it. That's helpful. And then on the DevelopIntelligence acquisition, apologies if I missed this, but can you give any detail there on the rough annual revenue and profit contribution that we should be expecting from that?

[Aaron Skonnard:]

Yes. Think of it as -- we just bought it, so it's not going to be a huge contribution to the fourth quarter. Next year it's about $10 million in annual revenue. And it's roughly a breakeven business.

[Stephen Sheldon:]

Great. Thank you.

[Aaron Skonnard:]

Yes.

[Operator:]

And your next question comes from the line of Arvind Ramnani from Piper Sandler. Your line is open. Mr. Ramnani, your line is now open. You may now ask your question.

[Arvind Ramnani:]

Sorry, I was on mute. I wanted to ask about your bookings number. How many Verizon-type large deals do you have in the billings numbers? And I expected to see traction with some of these larger accounts.

[Aaron Skonnard:]

Yes. Absolutely, Arvind. So just to give you a few numbers around it. We have I think around 50 to 55 customers now paying us over $1 million. As I mentioned, that's up 86% year-over-year, so a really good improvement there. The average increase for our top 25 customers, just to give you another number, from their first purchase to what they're paying us now, is on average about 40 times their original purchase. So really great strength in our top customers. We continue to add at the high end and high end of commercial. That is where all the goodness is in our business. So we feel really good about that. And as we go into our pipeline here in the fourth quarter, I won't give you an exact amount, but we have probably about 50% more deals over $1 million to be had in the fourth quarter than any quarter we've ever had. So not only is the strength, the overall numbers or the overall weighted pipeline, not only does that look really good, but the qualitative aspects of the pipeline as well, as far as having more and more large transactions from upsells is something we think is a really good indicator.

[Arvind Ramnani:]

Great. And as you work with these systems integrators, you mentioned a couple of times firms such as Accenture. Are the economics or margins roughly the same or when you work with these SIs, there's some level of revenue sharing that takes place?

[Aaron Skonnard:]

Yes. Well, there's definitely revenue sharing, but they have a lot more to gain out of these deals than we do. We're coming in with our technology play. They have a whole massive services element that means they capture more of the revenue. But as far as the economics to us, these are huge deals. We talked about how we had a big customer that Verizon helped us with a couple of quarters ago where we were bringing in on our own before we teamed up with Accenture, we were bringing in about a $1 million a year from that customer. As we partnered up with the big SI, we turned that into a $4 million a year transaction. Now, the SI there is making a lot more as far as revenue, but we quadrupled the amount because of that relationship that was brought to us from the SI. The economics down to the bottom line it's a much more productive transaction and you get massively more opportunity for upsizing your billings and subsequent revenue, and the cost is a fair bit lower as well. Those are really good transactions for us to continue to team up with the Accentures, the PwCs, the Deloittes, the Fujitsus and others that we have relationships with.

[Arvind Ramnani:]

Great, terrific. Thank you very much.

[Aaron Skonnard:]

Thank you.

[Operator:]

And your last question comes from the line of Josh Baer from Morgan Stanley. Your line is open.

[Josh Baer:]

Hi, thanks for the question. Just wondering if you could talk a little bit about the initial interest in cloud labs. I think you mentioned different pricing and packaging as a separate SKU. How do you think about the opportunity? How should we think about timing, potential contribution from cloud labs?

[Aaron Skonnard:]

Yes. I'll start and James can add on, if he wants. Thanks for the question, Josh. In general, we have seen strong demand for this type of hands-on learning experience across all of our SKUs. And so what we've decided to do with this offering is include it in our enterprise SKU for up to a certain number of licenses. So we provide a percentage of licenses in the SKU as part of the enterprise value proposition with an upsell opportunity to then sell to the entirety of their base. With all other SKUs it's a complete add-on, and so it's priced and packaged as a separate capability that can be included on any deal that we sell. And the initial response has been one of high interest, a lot of desire to dig in, understand it. Obviously early days. We just announced it a few weeks ago. But we expect it to be a driver of additional growth. And the partnerships we have with AWS, Azure, and GCP further strengthen the credibility as well as the reach we have in terms of content coverage, certifications and everything we can deliver in those large accounts. And even more powerful when you combine in the DevelopIntelligence services that we can add into that. So we're excited about cloud labs. We believe it's going to be a key driver of future growth in 2021 and 2022, but still pretty early. James, anything you would add?

[James Budge:]

Just a little bit. I would just say, it's really a combination. When you look at what gives us a lot of optimism in the statements we make about improving or accelerating our growth in the fourth quarter and seeing that acceleration continue throughout 2021, whether you want to point to cloud labs or DevelopIntelligence or continued improvements in our gross and net retention that we're now seeing, we believe getting past the worst of COVID, all of that factors into the strength and the positivity that we have going into 2021. So, cloud labs, yes, we think it's going to be huge. And it definitely helps drive that improved performance through 2021.

[Josh Baer:]

Great. Thank you.

[James Budge:]

Yes.

[Aaron Skonnard:]

Thanks, Josh.

[Operator:]

And your next question comes from the line of Andrew Petry from BTIG. Your line is open. Mr. Pertry, your line is now open. You may now ask your question.

[Andrew Petry:]

Hey, guys. Sorry about that. I was on mute. This is Andrew on for Matt VanVliet. Kind of circling back to the DevelopIntelligence acquisition, and it sounds like that's driving a lot of confidence for you guys. Just thinking more broadly about the M&A strategy moving forward. Has this changed how you might think about consolidating the market given the huge opportunity in front of you guys? Any color there would be helpful. Thank you.

[Aaron Skonnard:]

Yes, you bet. Thank you, Andrew. It hasn't shifted our thinking more broadly about how we think about consolidating the broader tech skills landscape. We do look at our strategy and our roadmap and look at the best assets to plug in the capabilities that will bring immediate value to our customers and also to our shareholders, and we will continue to do that. This particular move is not a signal that we will be investing more of those dollars in more of human-based services. That's not what you should read into this. We will be buying other digital assets that further complement our strategic focus for the large enterprise accounts we serve. But this was a very important piece of the puzzle for us to be able to maximize the opportunity in front of us right now with the COVID impact, the shifting trends to put ourselves in a better position to provide that holistic solution. And we believe we have the foundation for that with this acquisition in place. And the types of acquisitions we do in the future will be more consistent with some of the things we've done in the past, I would say.

[Andrew Petry:]

Great. Thank you.

[Aaron Skonnard:]

You bet.

[Operator:]

And I'm showing no further questions at this time. I would now like to turn the conference back to Mr. Aaron Skonnard for closing remarks.

[Aaron Skonnard:]

All right, everyone. Thank you so much for all of your questions and for joining us today. We look forward to speaking with all of you again next quarter. Be well and stay safe.

[Operator:]

Ladies and gentlemen, this concludes today's conference call. Thank you for participating. You may now disconnect.