Standard BioTools Inc. Price & Performance (LAB)

Thank you, operator, and good afternoon, everyone. Welcome to Standard Bioteool's Fourth Quarter and Full Year twenty twenty four Earnings Conference Call. Leading the call today is Michael Agholm, President and Chief Executive Officer Alex Kim, Chief Financial Officer. At the close of market today, Standard BioTools released its financial results for the quarter ended in year December 31, 2024. On our financial and operational performance 2025 outlook, market trends and strategic initiatives. During the call, we will make forward looking statements about events and circumstances that circumstances that have not yet occurred including plans and projections for our business our outlook for 2025 and future financial results, market trends and opportunities, and our expectations related to the combined operations with SomaLogic including potential synergies and our business outlook for the combined company. These statements are subject to substantial risks and uncertainties, that may cause actual events or results to differ materially from current expectations. Forward looking statements on this call are based on information currently available to us. We disclaim any obligation to update these statements except as they may be required by law. During the call, we will also present some financial information on a non GAAP basis.

We believe these non GAAP financial measures are are useful in evaluating our core performance and as a baseline for assessing the future earnings potential of the company. We use these non GAAP measures in our own evaluation of continuing operating performance we encourage you to carefully consider our results on a GAAP and non GAAP basis. The reconciliation between non GAAP measures and their GAAP equivalents are provided in the tables accompanying today's press release, and as an appendix to today's presentation slides. Please note that management will be referring to a slide presentation, including updated supplemental financial information, within the webcast today. Following prepared remarks, we will host a Q and A session. Today's slide presentation along with a replay of the webcast will be available on the Investors section of our website. Would now like to turn the call over to Michael Egholme, President and CEO of Standard Bio Tools. Thank you, John. Good afternoon, everyone, and welcome to Standard BioTool's fourth quarter and full year twenty twenty four earnings call. Joining me today is Alex Kim, our Chief Financial Officer. Before we dive in, I want to thank our customers, employees and investors for their continued support It's what drives us forward and fuels our mission to set the new standard in life science tools into and accelerate discovery while rewarding all of our stakeholders. 2024 was all about hard work execution and transformation.

We closed the year at the top end of our revised range demonstrating our team's commitment to deliver in a dynamic environment. We successfully merged two businesses under one roof powered by Standard BioTrue's Standard system or just SBS. We exceeded cost synergy targets improved our processes and delivered better products and higher quality to our customers. Phase one was just a start and we're far from done Now comes Phase two, driving the commercial flywheel evolving our product mix and expanding into key markets organically and inorganically, all while constantly applying SBS to further enhance efficiency as we drive towards With that, let's discuss our result, of which I will be speaking to pro form a numbers. In the fourth quarter, we delivered $46,700,000 in revenue, and $175,100,000 for the full year, representing a 9% year over year decline for each period. Performance for the quarter and full year was impacted by continued softness in instrument and services as CapEx constraints and cautious spending in biopharma and academia offset strong growth in consumables. Stiff headwinds persist, but we are actively working to drive top line performance through commercial execution, market diversification, and expanded customer engagement. Although the year over year revenue decline, our fourth quarter performance landed in line with mid year expectations reflecting improved forecasting and disciplined execution.

Looking ahead, we anticipate 2025 organic revenue between $165,000,000 and $175,000,000 which is approximately a 3% decline at the midpoint of the range. This is a measured forecast and accounts for only modest optimism for a gradual market recovery It remains a tough policy backdrop with several known unknowns that we're not willing to call at this moment. Still, we're well positioned for a return to growth and our outlook takes a measured approach that will allow us to maintain leverage against the top line forecast as we move through seasonality and gain momentum to boost performance towards the second half.

Importantly, we are still on a path to adjusted EBITDA breakeven in '20 While improved market conditions and return to growth will be helpful, we have a plan and option to improve our profitability disciplined stewards of our cash should the current environment persist. More importantly, we have the balance sheet strengthened nearly $300,000,000 in cash to execute our strategic plan bring us to cash flow positive and fund future bolt on acquisition We recognize that macro challenges are top of mind and creating a lot of anxiety and uncertainty in the market. While it's one of the most unique times in my decades of being in life sciences, I'll provide my perspective on three critical areas. First, the potential reduction in NIE spending Our direct NIA NIH exposure remains limited at less than 10% of revenue while America's academic exposure is approximately a third of our revenue. The situation remains fluid involving day by day, but we anticipate that a reduction in NIH funding likely to impact overall academia spend and priorities particularly delaying capital equipment purchases, Our team has done careful analysis and research we have factored into our guidance modeling in mid teens percentage decline in Americas academic revenue equating to roughly a high single digit million dollars at the midpoint of our range.

Second, on the recent U. S. Export Control Interim Final Rule, we have reviewed the regulations [indiscernible] counsel and have determined it does not apply to our CyTOF Products. These Systems Are Designed And Manufactured In Canada composed predominantly on non U. S. Components and shipped directly to China.

As such, we assume no impact at the midpoint of our guide. That said, we continue to closely monitor the broader U. S.-China trade dynamics, including potential regulatory shifts that could impact procurement decisions.

We remain proactive in managing potential challenges through regulatory engagement and supply chain flexibility. Third, the tariffs We focused principally on our products made and shipped from Canada to The U. S. Where most of our products fall under The United States, Mexico, Canada, trade agreement. However, new import tariffs on Canada, ongoing China tariffs and potential reciprocal measures add complexity to the global trade environment. While we do not expect top line impact, we are taking targeted countermeasure to minimize any potential effects. When possible, we'll pass cost on to our customers while balancing demand impact if necessary, if we were to absorb these tariffs, we estimate a low single digit million dollar impact to gross margin and adjusted EBITDA. The world is changing, markets are shifting and policies are evolving. And we continue to monitor developments closely. Most importantly, we remain laser focused on protecting our P and L and position the business for sustainable long term growth. In an environment where growth is hard to combine, we remain fully focused on what we can control driving productivity, and cost management across the business With the integration of SomaLogic complete, the benefit of these efforts are becoming increasingly evident.

Throughout 2024, we operationalized 80,000,000 in cost synergies, a full year ahead of plan strengthening our operating leverage and lowered our overall spend. These actions resulted in a 22% year over year reduction in non GAAP operating expenses, while delivering a 33% improvement in adjusted EBITDA in full year '24 versus '23. Reinforcing our commitment and willingness to appropriately manage cost absent top line growth. Earlier this year and with full awareness of the macro environment, we made the difficult but necessary decision to implement an additional $10,000,000 in cost reductions primarily in research and development bringing total operationalized synergies to $90,000,000 over the past twelve months and further tightening the bell to ensure we stay nimble in an evolving landscape. SBS is central to our success It's a competitive advantage and it's applied to everything that we do. I like to call it our not so secret weapon, Beyond the profitability metrics highlighted above, the impact on delivery and quality is just as impressive. In Q4, on time delivery reached an industry leading 98%. Up from 78% in Q4 of twenty twenty two. While customer complaints on our main instrument platform declined more than fourfold, over the same period.

These are leading indicators that reflect our unwavering continuous improvement commitment product quality and customer satisfaction factors that ultimately translate into long term profitability. At Standard Bioteools, we are building a top tier list [indiscernible] leveraging consolidation to all complex sectors innovation bottleneck and inability to scale. Our goal is to become the preferred industry partner to both customers and innovators we're focused on providing a portfolio of consumables, instrument and services in attractive end markets which shares a platform that drives quality performance and profitability for stakeholders. And shareholders alike. This brings me to our revenue mix for the year, which had consumables at 34%, instruments at 16% and lab and field services at 3314% respectively. Consumables strength was more than offset by a reduction in capital equipment spending as customers remain cautious with their budget as well as headwind in lab services due to variability in demand, from a few select large pharma accounts. Before I go through the rest of the pyramid, I would like to double click on our SomaScan platform, the crown jewel of our portfolio. For decades, genomics has driven breakthroughs in medicine and proteomics is the next big health transformation and is the next billion dollar market opportunity for science research.

The genome is important but it's static, except in cancer.

Proteins, the molecules that drive biology, on the other hand, are dynamic changing as we age, age, respond to disease, treatment and our environment. Until now, Polyomics Research has been held back by legacy antibody based technologies that simply don't scale I'm emphasizing this [indiscernible] as a competitive comment per se, it is simply a technological reality. SomaScan on the other hand is pushing the boundaries of what's possible in proteomics using a 10,000 proteins with unmatched precision unlocking entirely new possibility for disease research and drug development. The momentum is real and the data keeps showing it Just last week, a new preprint came out comparing SomaScan to competitor platforms and the results were clear. As prior studies have shown, SomaScan providers [indiscernible] and lower technical variability.

This cements SomaScan as the most comprehensive, most precise and most scalable platform for plasma proteomics. To unlock its potential, we had to match SomaScan's scientific scale with commercial heft and a detection system able to scale outside a few labs. This is why we partnered with Illumina, the leading NGS provider, integrating our DNA based aptamer technology with Illumina's 2,000 plus NovaSeq installed base, Strategically, our respective capabilities are highly complementary We came to Vodac together to develop a product that will be a game changer. Bringing distributed high throughput polyomics to more researchers and commercial users than [indiscernible] Just as NGS revolutionized genomics, we believe this marks an inflection point for proteomics making large scale protein analysis accessible and actionable at unprecedented levels enabling far more insight into human disease. We're on track to launch in the first half of this year and momentum is building. We're seeing real world validation in collaboration with Illumina at Biogenetic and a pharma consortium inclusive of GSK, J and J and Novartis we are analyzing 50,000 samples from the U. K. Biobank, generating one of the largest high quality proteomics dataset ever assembled. Meanwhile, Nuva Nordisk recently showcased somaScan's potential in nature medicine on covering new insights into GLP-one drugs not just confirming their metabolic and cardiovascular benefits, but also revealing the potential to smaller and faster clinical trials.

These are tangible examples of how high precision, large scale polyomics is transforming biomedical research and this is just the beginning and demonstrating that we are here to help pharma make better drugs faster. This momentum is fueling broader commercial adoption with consumers leading the way. Consumables remain our most attractive product category delivering double digit growth in the fourth quarter and for the full year. This performance was driven by expansion of SomerScan authorized sites, Illumina Early Access Program and elevated demand from our fluidics In this environment, consumables continue to be a bright spot providing consistent high margin growth reinforcing its position at the top of the product pyramid and a key strategic focus moving forward. Turning to our instruments, revenue declined 25% in Q4 and 27% for the year with the biggest impact coming from our higher priced mass cytometry instruments. While the instruments market remains challenged, we are actively working with customers at to adapt to shifting purchasing behaviors and budget constrained. Our omics as a service offering is a great example of this and an effort we're doubling down on. It leverages our full suite of solutions to deliver White Glove premium lab services to prospective customers This helps customer overcome capital budget constraints currently facing the broader biopharm market while accelerating adoption of our products while adding to our assay lab services revenue stream.

Service revenue was down mid teens year over year and the fourth quarter and full years driven primarily by SomaScan Services, which remains constrained to a large a few labs customers.

We're working hard to diversify our customer base to help mitigate this and we are encouraged by the consolidated momentum by the continued momentum revenue beyond our top five accounts grew double digit year over year a strong signal of a broadening adoption as we roll out additional solutions to democratize we believe utilization will continue to expand significantly positioning us as a leader in the larger polyomics market that commands a healthy mid teens cakers for years to come. It's an exciting portfolio We are well positioned to capitalize on the transition from genomics to proteomics as I just described, in addition, to the somaScan traction, spatial proteomics where our IMC product line including the Hyperion XTI plays a role who was named twenty twenty four Nature Methods of the Year a strong validation from the scientific community. Beyond our current portfolio strategic M and A, is part of our founding thesis and remains a core part of our strategy The market needs consolidation, we approach it with exceptional discipline as we look to identify and integrate high value assets onto our platform. The current market with all of its operational hurdles present a unique window for us, Valuations are down, funding is tied but innovation hasn't slowed.

If anything, it's accelerating. This is exactly where we thrive and it's bringing more quality opportunities our way at attractive valuation prime example is our recent acquisition of Syngenx, a strategic bolt on that enhances our soma scan enhances our soma scan service business with antibody profiling.

Looking ahead, we have a robust pipeline with four to six strategic transactions targeted over the next two years We're looking for derisk technologies, not science projects with a clear path to commercialization good margin potential and exposure to attractive end market With this market correction, we're seeing tremendous opportunity, but it's one that requires a mindful approach. We're stepping carefully, evaluating each opportunity rigorously and moving only on deals that align with our strategic and financial goals. To wrap things up, we have a proven leadership team committed to continuous improvement with a track record of driving growth, expanding markets while reducing cost. We made significant progress over the past few years merging two businesses repositioned the portfolio and driving operational efficiencies Through execution guided by SBS, we build a stronger, leaner and more resilient enterprise. But our work is far from done and we are diving headfirst into Phase two focused on scaling the business diversifying end markets and shifting towards higher margin consumables while staying strategically active delivering long term shareholder value. With that, I will turn the call over to Alex.

Alex, go ahead. Thank you, Michael. So I'll walk us through our financial results in more detail and provide some additional context. But first, I want to remind you that on an as reported basis, our fourth quarter and full year 2024 results include the combined operations of Standard Biotools, and SomaLogic since the close of the merger on January 5, 2024.

While the same periods in 2023 include the financial results of the legacy Standard Vitools business only, Therefore, for comparative purposes, and as Michael has done, we think it's more meaningful to look at the results for both businesses combined And so as I speak to our Q4 financial results, my commentary will focus on the pro form a combined result of operations for both Standard Biotools and Sumo Logic for 2023 and 2024.

Please refer to today's press release and the appendix to our investor deck for more information including a reconciliation of GAAP to non GAAP measures that I will be discussing here. Starting with revenue on Slide 13, our fourth quarter of twenty twenty four came in at $46,700,000 and full year 2024 at $175,100,000 both down 9% year over year.

Sequentially, from the third quarter of twenty twenty four, revenue grew 4% with a notable increase in instrument placements. Breaking down revenue further, consumables grew 10% in the fourth quarter and 18% with full year 2024. This was driven by strong kit sales to our Somoscan authorized sites as well as from the Illumina Early Access Program.

Traction of our authorized sites a good validation of our distributed solution strategy. As our installed base across our portfolio continues to expand, we will focus on driving usage of our platforms and in growing this attractive reoccurring consumable revenue stream.

Instrument sales were down 25% in the fourth quarter and down 27% for the full year 2024 as capital spending in our end markets remained constrained. While we didn't pick up on any material trends, we were encouraged as we saw a few pockets [indiscernible] of funds being released that drove a 53% sequential growth over Q3 twenty twenty four. And in particular, we saw good growth of our Hyperion XTIs spatial proteomics platform. Lab services sales were down 18% in the fourth quarter and down 21% for the full year 2024.

Historically, we have had high customer concentration In 2024, as we've mentioned before, our top customers had smaller projects versus 2023. Recognizing this, we have strategically focused on expanding and diversifying our customer base. And we made good progress in gaining new customers in 2024 and reducing customer concentration. Excluding our top five customers, our lab services revenue grew strong double digits for the full year. Our field services were down 10% in the fourth quarter of twenty twenty four and down 2% for the full year 2024.

Lower instrument sales led to lower installation services. And finally, our collaboration and other revenues saw a one time increase from a patent litigation settlement.

Moving on to gross margins. On Slide 14.

Our non GAAP gross margin on a pro form a basis was 52.5% in the fourth quarter of twenty twenty four, versus 55.4% prior year. And 53% for the full year 2024, compared to 53.1% in 2023. As we mentioned in our Q3 twenty twenty four earnings call, we expected lingering gross margin headwinds and one time cost through the rest of 2024. Year over year, our fourth quarter was impacted by lower volume, and a few instrument replacements, partially offset by incremental improvements from SPS. We have made great strides as Michael mentioned improving the quality of our instruments paying down our technical debt and we believe this is now largely in our rearview mirror. As we head into 2025, strong SBS improvements in quality, Yield and waste will offset lower volume and a negative mix shift to more instrument sales. More instrument sales, of course, a positive thing for us as it drives both consumable pull through and field service revenue. Moving on to our operating expenses on Slide 15. Our non GAAP operating expenses on a pro form a basis was $42,900,000 in the fourth quarter of twenty twenty four, gross is $56,500,000 last year, which is a 24% year over year reduction.

And $180,100,000 for the full year 2024, versus $232,200,000 in 2023, is a 22% reduction. Our operating expense reductions are a result of the ongoing realization of merger cost synergies we've spoken of before. To remind you, when we announced the Sumo Logic merger, back in October of twenty twenty three, the combined operating expenses annualized at $250,000,000 We set out an objective to achieve $80,000,000 in cost synergies by the end of twenty twenty five, We came out of our combined strategic planning we were able to accelerate and operationalize the full $80,000,000 as we exited 2024. Earlier this year in 2025, we further identified and took action on an additional $10,000,000 cost reduction as we delayed investments in certain long term R and D projects as we look to continually prioritize the shorter term return on investment in On Slide 16, our adjusted EBITDA was a $18,400,000 loss in the fourth quarter of twenty twenty four compared to a $28,000,000 loss last year which is a 34% year over year improvement. And $87,300,000 loss for full year 2024, versus $130,100,000 loss in 2023, which is a 33% improvement. Adjusted EBITDA excludes one time transaction integration and restructuring costs, amortization intangible assets stock based compensation among other items.

A core tenant of SBS is continuous improvement. And we plan to continue to eliminate waste, and improve productivity and thereby improving profitability while balancing reinvestment in the business to drive long term growth. And this brings me to cash on Slide 17. We ended the year with about $295,000,000 in cash cash equivalents, restricted cash and short term investments. Our total cash burn was $73,000,000 in the fourth This included $55,000,000 used to repay our convertible debt. And we now have substantially no debt on our balance sheet. We also had about $5,000,000 in M and A transaction restructuring and integration costs. Excluding the impact of these items, our adjusted cash burn plus CapEx was about $13,000,000 representing a 45% reduction versus the third quarter adjusted cash burn plus CapEx was $23,500,000 This reduction in cash burn was driven by ongoing realized merger synergies, continued expense management, and improved collections performance in the quarter.

Now as we look forward, our revenue guidance for the 2025 fiscal year is expected to be in the range of $165,175,000,000 dollars As Michael mentioned, we have modeled in headwinds based on internal analysis particularly with anticipated lower America's academic spend on the order of high single digit millions decline to our business. As well as potential tariffs impact on our margins with no impact on the China export controls. Beginning the year, we do expect the current environment to persist and then expect to build momentum through the rest of 2025.

Beyond this, we expect growth in our instruments, as pharma activity and global capital spending slowly returns, but offset by lower field service revenue from fewer service contracts and fewer instrument sales last year. We also expect growth from Stemascan services outside the top customers as we continue to expand our service base and with our SomaScan kit sales, to our expanding authorized sites and from the upcoming Illumina launch in the first half of twenty twenty five. Finally, we expect our collaborations and other revenue to be minimal in 2025. In spite of the current environment that we are navigating, we are well positioned our strategic plan and our strong balance sheet, to support the growth of our business to adjusted EBITDA breakeven.

Back to you, Michael.

Thanks, Alex. We thank you all for your continued support as we advance our mission and strive to set the new standard in the life science tools industry. We look forward to seeing many of you at upcoming investor conferences throughout March. And now, I hand the call back over to the operator.

We will now begin the question and answer session. The first question comes from Matt Stine from Jefferies.

Hey, thanks. First one, appreciate the color around what you're baking in the guide for The Americas due to some of the noise. Just love a little bit of color feedback of kind of what you're hearing real time on the ground now that it's been a few weeks, any comments you'd be willing to share even if anecdotally? And then as we think about that high single digit million headwind for the year. Any more color to add just in terms of that pause instrument demand? Is that consumables tied to to lab activity, just what's kind of baked into the analysis that you said you'd walk there. Thank you.

Thanks, Matt. Great question. As I As I just stated here, we are laser focused on on running our business every day and safeguarding safeguarding the P and L here. And [indiscernible] to the long term strategy With that, we're not seeing [indiscernible] A lot yet, but anticipate that people will spend less in The Americas academia. And probably consistent with what you have heard from others. Alex, anything any color to add [indiscernible] add where we anticipate some of the impact more on the instrument side The heavier capital requiring budget there. Some impact onto our consumables and services with the majority on our instruments.

Okay, great. That's helpful. And then maybe shifting over proteomics and the Illumina partnership.

I think in the prepared remarks in the deck, you called that out as an at least $1,000,000,000 opportunity. I think that's maybe size that partnership with Illumina Just given where kind of things have gone from early access and then as you think about the launch in the first for this year. More color you could add just in terms of how you expect that to play out or what you're penciling in for 'twenty five obviously given the market size there doesn't take much penetrate that to start to show up in a more meaningful way for you guys. So any more color on what you're kind of penciling in and expectations for 25x once you get the launch out there? Thank you.

No, you're right, Matt. It is indeed exciting and today, there are already billions of dollars spent in other areas of proteomics, but not where it really matters, which is plasma proteomics across thousands of patients. And as I pointed out, we're the only one that can read a substantial part of the proteome. So very excited about the launch I would also say that to get Comps for the market, Looker would spell spend on LCMS on one side, and then what's spent on genomics and then think about the informational content that is in the proteomics analysis as I outlined.

So genuine excitement and a feel very comfortable throwing the $1,000,000,000 number around for the opportunity here. Alex, maybe you can address what's baked into the forecast.

Yes. We've mentioned this in the past.

Have had strong alumina revenue in 2024 driven by development ramp up and early access customers An increase in alumina revenue but as they get new sites, on board, it will take those customers time to ramp up. And so we still expect '25 to be a transition year. With stronger growth coming in 2026 and beyond. Super. Thank you. The next question comes from Dan Brennan from TD Callen.

Please go ahead. Hey, good afternoon guys. This is Kyle on for Dan. I wanted to go back to the guide. You don't have anything baked in for tariff and tariff impact and export control impact in China. Do you see any opportunity in China on the instrument stimulus side for your proteomics instruments? We have a strong team in China and we're seeing good traction so far. And we'll keep absolutely pushing that. So certainly looking this year looks better than last year. Got it. And then on the M and A side, you laid out the four to six deals, 25, 26. You laid out some of the types of assets that you'd like to go after, but how should we think about maybe the size and timing of any of these deals? We have a rich final. We are working this every day as we speak. And M and A has its own timing. So at any one time, we are working on multiple parallel deals I did touch upon a bit on the criteria that we are looking at. It has to be a proven technology. We do not do science project. They have to be derisked and they got to have a strong gross margin profile.

So in other words, the DICID on the top of our value pyramid. And so we're looking that as the lens here. But we are aggressive. We've We've done two major deals over the last three years and we did a talk in with Syngenx which where integration just a couple of months in is is close to the end of the road here here for integration and now offering this up as part of our SomaScan services.

Got it. Thank you, guys.

The next question comes from Paul Knight from KeyBanc. Please go ahead.

Michael, I know the business has been answered, but what's your target cash burn in '25 I'll let Alex handle that one. Yes, we're not providing short term guidance on our cash burn.

But maybe to give you a sense, you could look at the second half exit rate and assume that we're going to continue to make improvements off of that. We feel like we've got a very strong balance sheet to even weather the current environment we're at and get us to cash flow breakeven and to fund some of these smaller bolt on acquisitions. So we feel like we're in a [indiscernible] [indiscernible] That's the adjusted EBITDA breakeven in 2026. That's correct.

Okay.

And then Michael, if the NIH ended up where I guess kind of in effect a continuing resolution If the NIH ended up and where we kind of get back to normal, which I think is mid single, maybe better NIH budget growth. Where would that put you in terms of what guidance could be? I think we already bracketed the all NIH impact I would say though, and maybe building a little bit on the answer to Matt's question before We haven't seen impact yet on sales Again, we're only a couple of months into the year or barely two months into the year. What we have heard is a lot of changed behaviors [indiscernible] should this miraculously resolve in a short term, I think we'll go through still a couple of quarters of changed behaviors. And so [indiscernible] feel comfortable with the guidance we have given here. [indiscernible] And then last question, Michael, is with the joint product with aluminum, what do you think that addressable market price could be?

Yes, I was courageous in putting out a $1,000,000,000 marker. I think that [indiscernible] [indiscernible] truly and genuinely believe that routine plasma proteomics is a market like NGS that will evolve in evolve in time and grow quite large. Think about it, we have one genome and other than in cancer a little bit with the immune system, you don't actually need repeated sequencing. You need a once for your proteome a number of study and cases where we will have to do the samples yearly or more of follow pre, post treatment, etcetera, sort of the number of of proteomes that are going to get enumerated are just mind boggling and [indiscernible] as I've shared here on recent conferences, the informational content you get from Polyomics while genomics is important and genomics and proteomics together add a lot, The like per dollar information content much, much, much higher from proteomics and I mentioned a couple of studies here in the commentary I'm happy to share. The references.

Okay.

Thank you.

This concludes our question and answer session. The conference is now concluded. You for attending today's presentation. You may now disconnect.