Good morning, ladies and gentlemen. Welcome to LWSA's third quarter 2024 earnings conference. Joining us today are CEO Fernando Cirne, COO Rafael Chamas, and CFO and IRO André Kubota. For the Q&A session, we will also be joined by the company's senior management. This conference is being streamed via Zoom webinar with simultaneous interpretation into English and will be available for replay at ri.lwsa.tech. You can download the slide deck for this presentation at the same website's results center under the Financial Information tab.
The reported figures are denominated in Brazilian Real and have been calculated following Brazil's standard accounting practices as per the statements, guidelines, and interpretations issued by the Brazilian Accounting Pronouncements Committee.
Before moving on, we'd like to mention that the statements contained in this document regarding LWSA's business prospects, operational and financial forecasts, as well as future growth estimates, are merely projections and, as such, are based solely on its management's outlook for the business. This outlook relies heavily on market conditions, the performance of the Brazilian economy, the industry, and international markets, and therefore may change without prior notice.
Unless otherwise stated, all variations and rounded-off figures here presented have been calculated in the thousands of Brazilian Reais. This business performance report includes both accounting and non-accounting data, such as organic and pro forma operating and financial results, as well as projections based on the company's management's expectations. The non-accounting data have not been reviewed by independent auditors.
For the question-and-answer session, we kindly ask that you use the Q&A button located at the bottom side of your Zoom window to submit your question. When doing so, please remember to state your name and the name of your company. As standard practice, your name will be announced so you can ask your question live. A request to activate your microphone will then appear on your screen. I will now turn over to Mr. Fernando Cirne, who will begin the presentation, followed by Mr. Rafael Chamas and Mr. André Kubota. Please, Mr. Cirne, you may proceed.
Thank you very much, Paulo. Welcome, everyone, to LWSA's third quarter 2024 earnings conference. I'd like to thank all our shareholders, associates, and analysts. Starting on slide number three, we have the highlights for this quarter. First of all, our operational fundamentals. We are still very solid, and here I mean our own-store GMV, our ecosystem GMV, our consolidated GMV, as well as our customer base. Our margins continue to grow, particularly because of a strong cost control and operational leverage.
We're talking about a 4.7 percentage point increase since this time last year, so a significant increase in our margins. We're also very focused on accelerating our growth. The company has grown by 5.5% in its commerce operations versus the previous quarter. Also, innovation. And when we talk about innovation, it is true that we've had several acquisitions, and this truly was very important to our operations.
But this quarter alone, we've launched three very important products. First of all, our POS via Tray has been very successful. Wake and also Etus, Rafael, will dive into these products. And these are just a few examples. We've conducted very interesting work in terms of organic conduction, which has been very interesting for us and has also boosted growth for us. And lastly, our shareholder returns via stock buyback as well as dividend payments, which has provided over BRL 192 million to our shareholders.
And finally, on slide four, within the succession program that we've already communicated to the market, in this call, we're joined by our new CFO and IRO, André Kubota, who will be presenting the financials during this call. Rafael, our former CFO and now COO, will be presenting part of what he already presented before. But back to André Kubota. He has an extensive resume.
He's worked with several different banks. He was also buy side with Constellation. He's worked with several very important companies and will be joining us for this call. Again, I will not take too long on this. Our COO, Rafael Chamas, will now move on with the presentation, and we will speak again during the question-and-answer session.
Thank you, Cirne. So moving on to slide number six, here we have a few very important indicators to understand the company's health and performance. Our ecosystem GMV, first of all, we started this period with BRL 17.4 billion. That's 16% growth. Again, this is a combination of everything that our clients sold during this period. So these 17 billion give us a sense of how important we are to our clients. We are helping all of our customers digitalize, so we are a very important player in the e-commerce chain in Brazil.
On the right-hand side, our customer base, as Fernando Cirne said, we ended this period with 191,000 subscribers, 6.1% more than last year. This shows how much we've been able to expand our operations with a lot of cross-sells and larger clients. Our subscription revenue has increased by close to 26%, a very important source for us to continuously grow our operation. Moving on to slide seven, a few more operational indicators. Our on-store GMV went up 18% to BRL 1.5 billion. Just to remind you, this is an indicator that shows how much our clients are being able to sell in their own clients.
We have enabled them to have a more profitable business, and we also capture a lot of that profit via payments. Our entire payment operation is embedded, meaning it can be accessed via our own software.
So we also grew our TPV by 15.7% to BRL 2 billion. Moving on to slide eight, another component of the company's health, profitability. We had an outstanding quarter seeing all these indicators go up. First of all, which shows how much our growth has been sustained by our operations, which are very healthy and increasingly profitable. Our gross profit has gone up by 6 percentage points from 43.9% in third quarter 2023 to 49.9% in third quarter 2024. That's a 20% growth. So, it tells a lot about our health in the industry with a significant impact on our bottom line.
So, our adjusted EBITDA has gone up by 36%. That's a 4.7 percentage point increase from 16.4% in third quarter of last year to 21% this third quarter of 2024. It's also gone up from second quarter when we had a 19.2% margin in consolidated terms.
These 36% increase led us to BRL 73.7 billion in EBITDA, which goes to show our net profit that led us to end third quarter of 2024 at BRL 16.9 million, a 6% profit margin for the company. Moving on to slide 9, a little bit more about our top line and our growth. The company's consolidated net revenue has gone up by 5.4%. We ended this period with BRL 349.3 million. But it's also important that we understand this, as we've talked about in several different conferences, the restructuring of the company's model with Squid, which is our digital influencer company.
This is a decision we made in third quarter of 2024 to restructure this operation in an effort to increase our profitability, which brought in more revenue. This is a consequence of our plan and our strategy, which is why by the end of 2024, our annual comparisons are a little bit lower than we would like to see because of that. So, without Squid, the consolidated net revenue is going up 11.7%, and only in commerce, we're going up by 18%, ending at 225.9. Another way of understanding this growth without looking at Squid would be to look at our quarterly advances, which is what I show you on slide 10.
So, on the left-hand side, we have our consolidated result, and on the right-hand side, only our commerce revenue. So first of all, as I said, the restructuring of Squid started in first quarter, so I show you how we've evolved since that time. And we have been growing in a healthy way since that time.
We grew by 4.8% in second quarter and 4% in third quarter in our consolidated net revenue, and in our commerce by 6.3% in second quarter and 5.5%. So excluding Squid in the previous quarter, now here we see how the company has evolved and how healthy we've done that in the last few quarters. Now, moving on to slide number 11, we look at another very important variable about our health, which is our ability to innovate. And we had some very important deliveries during this time.
I start by showing you a survey we took over the course of this month, which shows you how much we've developed, which is the importance of our omnichannel strategy. That might sound obvious, but this has shown a lot of what we've thought in terms of solutions and products that involve offering our clients the opportunity to leverage the brick-and-mortar world to increase their revenue and sales. On slide 12, I show you part of those benefits. First of all, something that was very important for us, Tray's POS. There's no question that Tray has been a very successful case, especially for SMEs to be able to sell more online.
We can't forget that there's a lot that we can do to help our clients in the offline world, a lot that can be done from a management standpoint as well as from an integration standpoint. That includes the integration between the offline world and the online world, whether that be via marketplaces or sales tools. There's a lot that we can do.
The market has grown in Brazil, but there's still a lot of companies that are only in the offline world. Tray's proposal of digitalizing retailers required a solution that moved to the brick-and-mortar world. About a month ago, we launched this product that has a lot of potential value. Tray now offers solutions for the offline world.
These are simple solutions, easy to introduce and easy to operate, and which allow our clients not only to digitalize their brick-and-mortar operations, but also to integrate their operations fully with the online world. We are now widely expanding Tray's value proposition to help not only SMEs, but especially them. We also had another fantastic release, which was Wake.
As you can see, the picture of our mobile solution, this is very important for our retailers to have a very broad overview of their clients, both online and offline. So they can look at order fulfillment, sales themselves, their offline sales operations, so POS sales, CRM solutions. So ultimately, we offer our retailers something that can easily unify their experience and their customer relationships, whether that's from an online perspective or an offline perspective in a fully integrated way. Now, moving on to slide 14, a third example of something that's also very important to us, a product called WAS.
WAS is a GenAI solution that we've provided via Octadesk, which is our sales and post-sales tool, and a very important product because it puts in our clients' hands the power of AI to better serve their clients via their check position and also offers more efficiency in their operations. So we now have a very important operations core leveraging the AI solution, which is very important to our future. Moving on to slide 15, Fernando touched on this, and now we dive a little bit deeper into this, which is our shareholder returns.
You have to remember this is a company that has grown and become increasingly more profitable and generating more and more cash and more and more returns. Now, two ways that we share those returns to our shareholders was one via stock buyback.
So far, we've bought back BRL 192.6 million in company stock that was bought back, which only goes to show how much we believe in the company's potential. And it was very important for us at that time to sell those shares. And we've also now canceled 34 million in stock that have been issued, which accounts for 5.7% of the company's total stock. We now have also approved the share of dividends.
These will be paid in November, BRL 40 million in dividends, which means BRL 0.07 per share, which shows that in 2024, we have paid our shareholders 192 million BRL. So, thank you very much. And now it is my pleasure to turn over for the first time to our CFO and IRO, André Kubota, who will move forward with our financials.
Thank you so much, Cirne and Chamas. I'm very happy to be joining the first conference with LWSA. I start on slide 17, talking a little bit about our revenue. In consolidated terms, we've come to BRL 349 million. That's a 5.8% increase year over year, and excluding Squid, 11.7%. That's also an increase over the last quarter by 4%. Our growth in commerce was even greater by 8.5% year over year, and by 18% excluding Squid, also up 5.5% versus the previous quarter. On Be Online and SaaS, we grew by 0.3% versus one year ago and by 8.8% versus the previous quarter.
On slide 18, we see an even stronger gross profit increase than that in our revenue by 20.3% year over year and by 9% quarter over quarter, which obviously shows the increase in our profitability, which approached 50% in consolidated terms, 54.5% of which came from commerce and 39.5% from Bling and SaaS. I think that more important than this very robust figure is the clear growth trend that we've seen since the fourth quarter of 2021. This was when we had our first acquisition cycle within the company.
Over to slide 19, we talk a little bit more about our EBITDA. Our growth was even greater than that of gross profit by 36.2% versus last year, which shows our great operational leverage potential with the increase of our EBITDA margin, which went from 16.4% in third quarter of 2023 to 21.1% in third quarter of this year.
In commerce, our EBITDA grew by even stronger levels by 36.9%. Our margins going up from 15.5% to 19.6%, again, close to the 20% level. On Bling and SaaS, another outstanding increase by 35% versus last year and a 24.5% margin. Over to slide 20, even more important than the levels we've reached in terms of EBITDA margin is the clear growth trend that we've had in these last few years following the acquisition cycle.
I think it was very important for us to, again, move inward, begin to realize our synergies, and focus more sharply in profitability and growing our margins within the company. Over this last year and a half, we've had an even close to 0.5% increase from 16.8% to 21.1%. And the trend is to continue to realize those synergies within the group.
Moving on to slide 21, looking at the full figures so far in 2024, we've come to an EBITDA margin of close to 20%, where in commerce, we're running at 17% and by 25% in beyond line and SaaS. Over to slide 22, as to our net profit in third quarter, we've grown by over four times our results of last year at BRL 16.9 million. And in consolidated terms, we went from a loss to a BRL 59.7 million. And it's important to say that this could have been even greater if we had included the funds that we invested in buying back our shares in the year of 2024.
Now, over to slide 23, about cash generation, EBITDA, CapEx, and financial expenses, we see a clear upward trend in our EBITDA stability over the last few quarters of our CapEx around 8.2%, down from the 9.3% that we had in 2022. And very importantly, this CapEx was also used to invest in innovation that will bring more revenue to the company in the next few years. Our financial expenses have also gone down now to 0.53% versus our TPV, which is a lot lower than what we've seen in the last few quarters and also what we've seen in recent years.
Lastly, on slide 24, we end the quarter with a BRL 460 million cash position, even considering the purchase or the buyback of over BRL 150 million over 2024, and adjusting by the lease liability and also very important position by BRL 389 million. Payable earnouts are also at a very interesting position of BRL 235 million. On that note, I'd like to turn the conference back to the moderator so that we can start our question and answer session.
I'd like to remind everyone that our questions should be submitted via the Q&A feature on the bottom side of your Zoom window. As standard practice, your name will be announced so you can ask your question live. Our first question comes from Leonardo Olmos with UBS. Leonardo, you may proceed.
Hello, everyone. Good morning. I have two questions. First of all, about revenue. We saw that one of your main subsidiaries, like Tray and Bling, there was a decrease year over year in revenue. And maybe an unfortunate coincidence is that your prices went up a little bit last year. Do you see any connection between the two things?
And what do you expect from these subsidiaries moving forward? That's my first question. And my second question is about your capital allocation. Even when you remove your buyback and dividend sharing, it seems like your revenue wasn't that high, and you still paid dividends and still bought back. Do you plan to change your capital structure to having slightly more debt, or do you see a share of capital that's even higher for the next few quarters? Thank you.
Hi, good morning, Leo. This is Rafael speaking. First of all, I think it's important to say that the explanatory note, which I think is where you picked up these figures, shows the accounting state of our subsidiaries. So it's important to say that Tray and Bling continue to grow continually. And you can look at the indicators. These are two very important parts of our commerce.
Their GMV is growing. Their TPV is growing, so the operations continue to move up. Now, I think that your point is, when you look at the explanatory note of our release, Tray and Bling have been incorporated into LWSA via what we call the fiscal improvement, so when you look at third quarter, these subsidiaries only exist formally as their own entities until the second month of the quarter. By the last month of this quarter, they don't exist anymore, so when you look at this company specifically, they have only two months of figures.
This is a dumb calculation. You add the two and divide by three, but I don't think it's very appropriate to look at this note to consider these results because the former will have only the results until the incorporation, and it's important to remember we have also important fiscal benefits to unlock.
The process of incorporating companies, which also involve significant streamlining and synergies, but also tax simplification is also going to continue to take place. We have other companies to incorporate as well. That's an interesting question because it allows us to tell you what happens in that sense. I think that we have solid indicators in our earnings release that show that the company's customer base, revenue from subscriptions in companies like Tray, Bling, and Wake, our GMV from our own stores.
These are all indicators that give us an operational reading that's very focused on our commerce operations, which are these that I just mentioned. Do you have any other question about this? Otherwise, I'll move on to your other question.
No, no. It was very clear. I appreciate that we discussed this because the entire market is looking at this explanatory note. I believe that the message was, excluding Squid, you had 18% growth in your commerce in addition to the details that you mentioned, and in total, 12% growth excluding Squid. So that's what I have to look at whenever I'm analyzing your balance, right?
Exactly. And even adding to that, when you add a quarter by quarter, the effect from Squid, it disappears, seeing as the most significant movement that we've made was in first quarter. So to understand how the company has grown, you have to look at second quarter and third quarter, where we were around 4%. So the entire commerce cycle also gives you an idea of what the pace of growth has been for our operation following the reduction that we've had in Squid at the beginning of the year. So the explanatory note is no longer a good source to look at the subsidiaries individually.
And now, adding to what I just said, these are the two ways to understand how our operations have continued to move forward. Okay, great. So moving on to the second question as to our capital allocation. Historically, we've always generated a lot of cash. These last four years, there was a different capital allocation because we were accelerating our M&A growth cycle. This was very successful. We were a company with less than one-fifth of its size in commerce.
And after this investment cycle, we have one of the most significant operations in Brazil. When we look at digital retail, that's very significant with the GMV that the company has over one-fifth of the Brazilian commerce. Greatly, very large scale. And so very steady operations.
In 2024, when we think about capital allocation, we're already showing the company's calling, which is we invest in operations with wide gross margins, a lot of working capital because our businesses are all prepaid. Our cash generation has always been inherent to our business model. If you look at what happened so far in third quarter and second quarter, our cash generation is still very solid, and this trend also remains in place. We understand that the company's next cycles focus has been to leverage the assets that we already have in-house.
There's still a lot of value to unlock, be it via structural allocation, which is what we have been doing, and there's still a lot to do, or by integrating products that will allow us to have a better value for our customers, more cross-selling.
Our focus in this next cycle will be to get more return from the assets that we already have, which will allow us to continue to generate cash and sustain the capital allocation that we already have in place, also to the benefit of our investors as well. As we show you on our slides, so far, it has been very significant, BRL 150 million. We also canceled part of the shares issued. We believe this is the best use of our capital. This will remain the tone for the next few cycles. Okay. Your point about this quarter in specific, generation was still very high. We had solid cash generation.
I think it's important to say, in spite of the high taxes we're paying, we had nearly BRL 40 million paid in taxes over this quarter, which means we are still not leveraging the fiscal benefit from the integrations, which will start now in fourth quarter. So this will continue to be favored by these payments of corporate tax, seeing as we will continue to leverage the goodwill from our acquisitions. I hope it's clear.
No, thank you. I thought this was going to be a challenging question, but your response was very positive, which is great. So thank you.
Our next question comes from Thiago Kapulskis with Itaú. Please, you may proceed.
Hello, everyone. Good morning, and thank you for taking my questions. And also, congratulations, Chamas, for the new position and the new challenges. I wish you and your team a lot of success. We also have two questions.
One of them on your margins. You see this recovery in your EBITDA margins. And I know that there were some shifts in personnel and the arrival of Fabio, but maybe from a higher level and taking the opportunity to speak with people who are in charge, what do you see as the main drivers of this improvement from an operational standpoint? Is it more integration, or are there other drivers, maybe price increases and so on and so forth?
And also, how could we look at these margins moving forward and also your strategy execution? And if you could also maybe share a little bit of the difference that you felt after these new people have joined the team in a few areas of the company. My second question would be about Squid. I think this, unfortunately, has still been a drag on your bottom line, but I'd like to understand where we're at with regard to the changes and any update would be much appreciated. Thank you.
Hi, Thiago. This is Fernando speaking. Let's dive in. With regard to our margins, margins have, well, three or four elements that have helped our margins growth in a very consistent way. In the last few years, we have worked a lot in realizing synergies within the company. In the last couple of years, and the first of them, there was a lot of work on operational leverage. The commerce companies that we've acquired, as we've said, have grown very substantially. Companies such as Bling have grown significantly with a disproportionate cost growth. That was the case in the last few years, very remarkably so.
And when we talk about this last year, more specifically, that's when the work has started within the company, which has been supported by our management and processes team under Otavio, which has been to increase cost control and also to merge operations. When we acquired this large set of companies, we initially focused on their back office and enabling these companies to operate in a faster way and leaner way.
And then we integrated those products from a customer perspective. And now we are working to reduce the number of brands. We have reduced by more than 10. We want to have the minimum number of brands within the company. And we're also streamlining the company overall.
This merger that occurred in the case of Host, even though we have two fully integrated operations within the company, that's only one example, but there's also another operation, the case of Tray, for example, with S-Club and the payments operation itself. So this merger within the group also brings in cost reductions that are dramatic. Just to give you an idea, this year alone, the company has grown, but we're ending the year with a significant decrease in the number of our staff. We started the year with 3,200 personnel, and we're ending the year with less than 3,000.
And this will end the year. And of course, staff is just one indicator. We are way more than just staff. So we're talking about operational leverage, structure optimization, staff reduction, which also allows us to expand our margins. I will turn over to Gil, who is head of Wake, but he will give you figures and facts. But Squid, despite these narrower margins than the rest of the company, has contributed to the increase in our margins this quarter.
Olá, thank you. Good morning, and thank you for the question. This is Alessandro Gil speaking. So if we look at the income statements, in the first quarter, we had a loss of BRL 5 million in profits for the operation. And then we evolved quarter by quarter. It was negative 1.8 in the second quarter and negative 1.3 this quarter. So our commitment since the first calls this year to work on the health of this operation, improve our processes, and optimize the team have taken place in a satisfying way. Bearing in mind that close to 80% of our personnel has been refreshed, which allowed us to adjust our processes.
So now we can be a bit more comfortable to look at the future of our operations and move forward in the process of realizing the synergies that we have with our commerce and every operations, not only Wake, and seek synergies with Tray and Wake in this influencer marketing business.
And just picking up on what Alessandro said, it was very important to shrink the size of Squid in size. And we understand that we can now operate in a way that is still in line with our focus for the rest of the company. And as he said, as Alessandro said, we're close to reaching break even in this operation. And so I think looking at our results ex Squid is a very honest way for us to show you the results for the company. And we can now see maybe a small growth within that company.
And next year, we can stop looking at our results excluding Squid because then you'll have the company's actual performance without that adjustment, which obviously is uncomfortable for us. Nobody likes it, but it's a way to look at the company. And perhaps next quarter, we'll be able to have that adjustment.
Okay, that was perfect. Thank you. Thank you, Cirne, and thank you, Gil, for the answers as well.
Our next question comes from Livea Mizobata with JP Morgan. Please, you may proceed.
Hello everyone. Good morning. And thank you for taking my questions. I also have two questions. My first question is, you've reported a decrease in the acquisition of new subscribers in third quarter, and you mentioned that these are especially customers with less than 15,000 in GMV.
We'd like to understand what the drivers are behind that, if there's any competition is playing any part of that, or if there's anything else that's been attracting fewer of these subscribers, and also, I wanted to understand where it's at about Mercado Libre's release of their own ERP product. Is there any similarity with the solutions that you have? Could you add a little bit of color in regards to where it's at?
Okay. I'll turn over to Luis to take on your first question, and I can take on the second part.
Good morning, Livea. Thank you for your question. We've been looking at Tray and Bagy a lot when it comes to these new platforms, and we're looking at them already in an integrated way. We've had technology integrations, operations integrations, so we're already addressing it as a single business.
They're both doing really well. Bagy has made significant headway in terms of revenue. What we're seeing, Livea, is that the number of clients may not be the best proxy for us to analyze to understand how the business is growing because there is a share of clients, especially small ones, clients that are trying to set up their e-commerce and are not successful. So we adjusted the business to attract more successful clients. You can look at the on-store GMV going up by 17%.
What I mean by that is both Tray and Bagy have found very successful paths in the market, each of them with different client profiles, Tray seeking those more traditional retail clients, these more traditional clients, which is why we are launching Tray PDV or our POS for that integration.
And on the other hand, Bagy growing among those newer retailers, which are digital natives and are setting up their operations for the first time. Now, within that profile, we have performed really well, which is why our GMV is going up. And we are sort of stepping out of the gas battle in trying to acquire those clients that would not be successful. So, in the way that we are selling, we are sort of selecting a little bit better, which shows why the number of clients is going down, whereas the GMV is going up.
This is because we are looking for clients that, after they subscribe, will also consume all products in our ecosystem: logistics, payments, our Bling ERP, our POS system. So we have been changing our client acquisition strategy because of that. We do not see anything coming from the competition to affect us.
I think the market is going at a regular pace, and Bagy, which has advanced really well, has received clients coming from different platforms. Over 15% of its revenue comes now from entrepreneurs who are trying to use other platforms and move to Bagy to set up their operations, so this is a little bit of what we see and what we're doing. We really are trying to seek those higher quality customers.
Hi, Livea. Well, a little bit about Mercado Libre. I think it's important to talk about our closeness with Mercado Libre. This has been a successful partnership connected to CRM, Tray, Bling. Our combined, perhaps the most important tools that generate revenue to Mercado Libre, so we work a lot together, but there's a very strong aspect there.
LWSA has one of its assumptions to not be a tool or a set of tools that's dedicated fully to a single marketplace, so we are one of the most important set of tools for the Brazilian marketplace ecosystem. We generate close to 25% of all marketplace sales across Brazil, so they're all doing very well, but our strategy is to be marketplace agnostic, and even outside of marketplaces, we integrate with TikTok, Facebook, whatever, so our idea is to generate as many sales as possible to our clients, and if a new marketplace comes up tomorrow, we'll be working with that as well.
Just to give you an idea, Livea, only 3% of our clients work only with marketplaces, so there are probably clients that prefer to work with only one marketplace, and this is probably the audience that Mercado Livre wants to reach.
It makes sense for them to have a product that vertically addresses their marketplace. So I do not see any conflict at this point. I think that yes, there is a verticalized market that wants to operate in a single environment, but we do not serve that market because only 3% of our client base use LWSA to work only with one environment. That's not our priority, but I do see that trend for Mercado Libre. There are clients that work only with Mercado Libre. There's a large market for that. So it makes sense for them to work with that audience, but it really isn't our reason for being. Okay. Thank you.
That was perfect, everyone. It was very clear.
We'd like to ask if there's any additional question. So, with no further questions, this concludes our question-and-answer session. I will now turn over to Fernando Cirne for the company's final remarks.
Guys, thank you so much for the questions. They really helped to add to our presentation. We'd like to thank everyone who joined us, everyone who also contributed to the results that we've reported this quarter, significantly better than the results we reported in the previous quarter. So thank you again, everyone. And I hope to see you all again in our call for the fourth quarter. Thank you and have a great day.
This concludes LWSA's fourth quarter 2024 earnings conference. We'd like to thank everyone for joining us and wish you a great day.