Okay. Good morning, everyone, and thank you for joining Vitalhub's Q3 2021 earnings call. Before we begin, I will read the necessary cautionary note regarding forward-looking statements. Certain information to be discussed during this call contains forward-looking statements within the meaning of applicable securities laws, including, among others, statements concerning the company's 2021 objectives, the company's strategy to achieve those objectives, as well as statements with respect to management's beliefs, plans, estimates, and intentions, and similar statements concerning anticipated future events, results, circumstances, performance, or expectations that are not historical facts.
Such forward-looking statements reflect management's current beliefs and are based on information currently available to management and is subject to a number of significant risks and uncertainties that could cause actual results to differ materially from those anticipated. Also, our commentary today will include adjusted financial measures, which are non-GAAP measures. These should be considered as a supplement to and not as a substitute for GAAP financial measures. Reconciliations between the two can be found in our management discussion and analysis, which is available on sedar.com and our website.
Just a reminder to our analysts that at the end of the presentation, we will open the line for Q&A. Please use the Zoom Raise Hand function, and we will be sure to get to your questions. We are joined today by Vitalhub CEO Dan Matlow, as well as CFO Brian Goffenberg. With that, I will hand it over to you, Brian, for your opening remarks.
Morning, everybody, and thank you for taking the time to join us this morning. Our annual recurring revenue base continues to grow as we execute on our growth strategy. Q3 2021, as a whole, was yet another strong performance for the Vitalhub team, and I will echo Dan's sentiments, as you will hear later, that we're extremely excited about the future of the company and what lies ahead for the remainder of this year and 2022.
We also achieved a significant milestone by listing on the TSX and believe that this is an important benchmark for the company going forward. Organic growth from cross-selling continues to grow, and we believe there's still lots of run room to execute on this strategy as our software solutions have shown that they have an important role in the future of healthcare. On that note, I will share highlights from the quarter.
Total revenue for Q3 2021 totaled CAD 6.6 million, compared to CAD 3.2 million in Q3 2020, an increase of 107% year-over-year. Total revenue year-to-date for 2021 totaled CAD 17.7 million compared to CAD 8.7 million for the same period in 2020, an increase of 104% year-over-year. Revenue from term licenses, maintenance, and support in Q3 2021 was CAD 5.5 million, compared to CAD 2.5 million in Q3 2020, an increase of 120% year-over-year.
Revenue from term licenses, maintenance, and support for the nine months ended September 30th, 2021, was CAD 14 million, an increase of 128% year-over-year. The increase in term licenses, maintenance, and support revenue is primarily attributable to new customer contracts and acquisitions completed in the year. Revenue from perpetual licenses in Q3 2021 was CAD 328 ,000, compared to CAD 101 ,000 in Q3 2020, an increase of 223%.
Revenue from perpetual licenses year-to-date was CAD 906 ,000, an increase of 8% year-over-year. Revenue from professional services and hardware in Q3 2021 totaled CAD 828,000 compared to CAD 611 ,000 in Q3 2020, an increase of 36%. Revenue from professional services and hardware year -to -date 2021 totaled CAD 2.9 million, an increase of 64% year-over-year.
Annual recurring revenue or ARR, which we formerly referred to as annual contract value, totaled CAD 21.6 million as of September 30th, 2021, compared to CAD 7.5 million in Q3 2020, an increase of 188%. Sequentially, annual recurring revenue increased 9.1%, and of this increase grew just over CAD 500,000 organically, and which is a direct result of our cross-selling ability that we're able to deliver from our acquisition strategy. Gross margin on total revenue in Q3 2021 was 82% compared to 81% for the same period last year. Gross margin on total revenue year-to-date was 79% compared to 74% for the same period in 2020.
Operating expenses in Q3 2021 totaled CAD 4.8 million, compared to CAD 2.3 million in Q3 2020, an increase of 111%. Operating expenses year-to-date, 2021 totaled CAD 12.2 million, compared to CAD 5.3 million for the same period last year, an increase of 128%. Our operating expenses increase is consonant with the increase in associated costs from the acquisitions completed throughout 2020 and in the first half of 2021.
Income from operations in Q3 2021 was CAD 679 ,000, compared to CAD 316 ,000 in Q3 2020, an increase of 150%. Year-to-date income from operations totaled CAD 1.8 million, compared to CAD 1.1 million for the same period last year, an increase of 62%. Net loss in Q3 2021 was CAD 576 ,000, compared to a net loss of CAD 1.1 million in Q3 2020. The net loss year-to-date is CAD 1.3 million, compared to a net loss of CAD 1.5 million for the same period in 2020.
EBITDA for Q3 2021 was CAD 189 ,000, compared to an EBITDA loss of CAD 419 ,000 in Q3 2020. EBITDA year-to-date for 2021 was CAD 645,000 compared to CAD 274 ,000 for the same period in 2020. Adjusted EBITDA in Q3 2021 was CAD 1.3 million compared to CAD 503,000 in Q3 2020, an increase of 154%. Adjusted EBITDA year-to-date 2021 was CAD 3.2 million compared to CAD 1.5 million for the same period in 2020, an increase of 108%.
Adjusted EBITDA reflects add-backs, non-cash and non-recurring items such as share-based comp, business acquisition costs, restructuring and integration costs. According to our adjusted EBITDA figure this quarter does not include associated costs with our uplisting to the TSX, and the additional costs incurred to obtain our bank financing, some of which we do consider to be one-time expenses. Cash on hand at the end of September 30th, 2021 was CAD 15.7 million compared to CAD 23.4 million at the end of 2020.
With that, I'd like to hand the call over to Dan for an update on the business.
Thanks, Brian. Let me just informally just state a few things, and then we can take some questions. That was pretty comprehensive. Q3 in our sector is traditionally, as we all know, a slower quarter. We're primarily dealing with government-based healthcare organizations. The summer months are generally a little tough to get things done, and they're extra tough this year because of the finishing of COVID or the slowing down of COVID. A lot of our hospitals definitely went into a bit of a pause mode, especially in the European marketplace, the U.K. marketplace that we're doing.
We still continued to execute on our business plan by still putting in over CAD 500,000 more of organic base growth. Then we had the Alamac acquisition in there, which got us to about CAD 21.5 million in terms of our ARR number, which we're happy. That's our high margin-based revenue and gives us really the foundation to keep working forward too. Organic growth still over the last year was still above great expectations, above the 20%-25% level on an annual 12-month basis, so we're there. We're approaching our adjusted EBITDA number of 20%.
That's been a target that we really wanted to get to, and we keep moving towards that by getting to 19% on the quarter. As Brian mentioned, we did not include our Bank of Nova Scotia or our TSX financing in that number for the quarter. We keep moving in those right directions. We did close some new deals. It's important to note that our you know our two biggest high recurrent base products being the Transforming Systems product and the Synopsis product didn't really contribute in the quarter itself, which is still good because we still got a good pipeline in those products.
Our S12 products had some revenue. The TREAT product continues to advance in the Canadian marketplace and has been a great addition to our base. The work we've done in Nova Scotia has really enhanced that product, and we're competitively doing some great work in the field with that and really think it's positioning itself as the leading product for the mental health EHR world in the community sector in the Canadian marketplace, and we're really excited about some of that on a go-forward basis.
We still have CAD 15 billion in the bank for acquisitions and the CAD 10 million Bank of Nova Scotia acquisition facility, which we also know is expandable if needed. We are in the world of acquisitions. We got stuff in play, and we think we've digested pretty comprehensively what we've done. We still got some work to do in our integration plans, but we've done a pretty good job of integrating that.
W e're actively out there, and we're looking for acquisitions. Also important in the quarter is we had the ability to travel. I finally made it out to the U.K. after a year and a bit with COVID to start doing that, and the U.K. groups are starting to travel to Canada. There are some added expenses that are being associated with travel, but it's well overdue.
We're having to get out to our Sri Lankan-based operations and cross-pollinating our resources where applicable. That's all a good thing as we start working together on those things. If there are any questions, I'd love to take them at this point.
Thanks, Dan. Thanks, Brian. Our first question is going to come from Gavin Fairweather at Cormark. Gavin, you can go ahead when you're ready.
Oh, hey, guys. Good morning.
Morning, Gavin.
Morning.
I just thought I'd start out from kind of a macro perspective and saw the press release that you put out recently just noting some of the additional funding in the U.K. budget for the NHS to invest in digital tools. Can you just walk us through kind of which of your products you think fit the description that was attached to that funding and just overall kind of how these grant frameworks work?
Yes. In government healthcare in Canada and the U.K., it's very often associated that the government will move capital purchase funding into the sectors, into the trusts, into the government bodies that would do that to come and look for solutions that do that. A big issue that's going on right now is the elective surgery backlog or just the backlog in general within healthcare.
The government is looking to throw money into that for automation for that. We have a bunch of different solutions that fit into that world. The Synopsis product definitely is there on the preoperative-based world. The Intouch product, I think we made an announcement of the Intouch product moving into things like shopping malls. They're actually taking vacant space in office buildings to set up MRI... No t MRI, t hey're setting up clinics for preoperative-based work or pre-assessment-based work.
Our solutions are there on the Intouch with Health and helping facilitate the patient flow into those particular groups . Transforming Systems has this solution called Elective Care Backlog, which can show a group of hospitals where elective surgeries are backlogged so that they can move resources where applicable. That product would fit into those worlds as well. Those are probably our three main product sets that would be the ability to get some of that funding.
Just on the mechanics of it, like the trust will apply for kind of grant money attached to a specific software product and see if it's approved. Is that typically how it works?
Yes. That’s typically how it’s approved. Grant money is applied for to go after different projects to help facilitate that, and that money would then flow into the hospitals. They typically will fund it for multiple years on the recurring side, and then at that point, the trusts would have to do it themselves. That’s typically how that would work.
That's great. Just, broadly on the sales side in the U.K. market we're now kind of in the middle of Q4 you know with Q1 kind of right around the corner. Obviously, the busy season from a sales perspective. Curious for any trends that you're noting in the pipeline the overall size of the pipeline and what products specifically you're seeing good interest in.
I think Q4 we definitely have a lot of activity going there, and hopefully we'll get some of the stuff over the finish line between Q4 and Q1 of next year, which is your government year-end in a lot of times when a lot of that grant money needs to be spent by. We're definitely working on a lot of different fronts here with a lot of different products but o ur core products still seem to be the ones that are moving along.
It's the TREAT product in the Canadian marketplace and the Intouch and the Synopsis suite, as well as the Transforming Systems suite are still our main products that we look to for our organic growth, and those are the ones that seem to have most of the activity.
Great. Then just lastly before I pass the line. If I look at your EBITDA margins this quarter and kind of add back some costs on the TSX uplisting and bank facility costs, you're kind of at 22% in a summer quarter. With a bit more growth, you're going to be kind of knocking on the door of 25%, pretty quickly here.
I guess the question is, when you look at the sales environment that you have right now, like do you intend to let those margins keep kind of pulling higher as you grow? Or do you think that you're going to get to a place where you're going to be ramping your sales team further to support further growth?
I think it'll be a little bit of both, but we definitely do want to go after some opportunities for more cross-selling in the Canadian marketplace with some of the U.K.-based products. We are starting to build up some activities in the Australian market that gets associated with that. Inherently as you do continue to grow, you do get some more COGS and some costs that might come into the equation.
We do want to invest. I think we shouldn't be investing somewhat into our sales and marketing approach in a gradual, responsible mode. We're not here to infringe on that. I don't-- w e do like the rule of 40. We're probably more positioned like 20%-25% adjusted EBITDA and 15%-20% growth company, I think is where we would like to steady-as-she-go type of organization there. If we do, we want to hit those metrics first, but if we aren't hitting the metrics, we would like to be able to put some of that back into some of the growth mode for sure.
Great. I'll requeue . Thank you.
Thank you, Gavin. Our next question will come from Daniel Rosenberg at Paradigm. Daniel, you can go ahead when you're ready.
Good morning, Dan and Brian. Congrats on a strong quarter. My first question is around the M&A that we've seen in the past year. Along the integration front and the cross-selling front, maybe if you could give us some context into what we can expect, which acquisitions are digested, how they will be digested into the near term and how that impacts the cross-selling opportunity and maybe some of the costs associated or cost savings associated with integrating them.
Yes. I think t he Alamac acquisition is being digested, and that's really associated with our Transforming Systems acquisition. Those two organizations will be very collaborative in terms of how those work together. We do think those solutions are pretty integratable and already have some activity in those. They've already worked in the field in the past before, so that would make sense to do that.
S12 is a little bit more of a standalone-based application in terms of what it does, in terms of the S12 compliance-based requirements in the U.K. is pretty unique. We do think there's opportunity to move that product into other geographies. We just need to beef up those resources. So far, that organization is pretty much running standalone. We always look for synergistic value in terms of, especially with the labor market the way it is in North America, using our Colombo, Sri Lankan base for development, which leads to more innovation in a cost-effective basis.
We do like to use that group, where applicable with those things. Yes, those are the two main acquisitions we did this year would be the S12 and the Alamac one i n the U.K.-based market. Jayex is already being very integrated into the Intouch base group. It's part of an asset purchase. It just went into the Intouch P&L. That's all a separate based organization that's pretty integrated. . we have obtained some pretty good cost synergies.
There's still more to get in in all of our based organizations on some fronts. We continue to move and peck away at those items as we continue to grow. We're starting to get ourselves into a good spot and more acquisitions will definitely help on those margins as well.
Thanks for that. Maybe just, I was curious, there was some news headlines, not too long ago about a cyberattack out east. I was wondering how you think about that in the line of work you're in. Does that give rise to opportunities for you, impact you in any way in the thinking of the customer base? If you could just comment around that.
Yes. Actually, we have invested a fair... the Nova Scotia project has really forced us to play our cards with the TREAT application in many different ways in the privacy and security world, which has been laborious on our side to be able to go through the certification processes. We are going through SOC 2 certification process right now, as well as moving into the ISO certification process with those particular products, which is making us unique because our main competition in the EHR market, in the Canadian marketplace are really smaller-based organizations, which are legacy-based applications which really support EHRs in that marketplace. TREAT is starting to really come to the top very nicely.
One of those areas is because of our security, privacy and SOC 2 certification. We expect to be announcing over the next while some larger based organizations that are going to come on board on the TREAT application. One of those reasons is because of our compliance and our track record on that particular application. It's a good question, Daniel, and we do think it's something that's important for us to highlight.
Thanks for that. Lastly for me, I was just curious around kind of retention and customer spending and any color you could share on just now that you have several products and several years of experience in deploying them, how you're viewing trends in terms of customer spending and taking on added modules or what might be the reasons that a customer just didn't work out or wasn't the right fit?
We think, a lot of our products are in the sweet spot in terms of efficiencies and productivity within hospitals. Digitization is all about process improvements and things like Intouch and Synopsis and Transform are definitely in the sweet spot of a lot of the trends within healthcare. They are looking to move processes outside of paper-based and outside of the four walls of the hospital, and they are looking to use mobile devices and computers and see how much we can do at home or using those computers with the patient prior to that.
Those products would fit into those particular trends. We do think it's in the right direction. We work hard to get our customers up to speed. Sometimes, we'll inherit some legacy-based implementations that are tough in terms of some of the trends that go with it but the trends that are difficult are: bigger hospitals moving to the mono or the big EHRs such as Epic, if those solutions that would be impacted by that sometimes get troublesome.
S ometimes, we do see situations where exactly like Gavin said today, where they get grant money and they really don't get the commitment to deploy software and the software just doesn't get deployed properly because it never got there when it's time for renewal, there could be some issues. Generally our churn levels have been pretty good so far from what we've seen.
W e're not.... Churn will happen and we do budget for a little bit of churn, but our numbers are net churn. I think we look for 2%-3% churn on an annual basis, but we do incorporate our organic growth targets, incorporating that in mind. In general, churn is not what's keeping us up here at night for the most part at this stage of what we've seen so far. Still generally early days, most of our acquisitions have been done in the last 15, 18 months but generally, we see our base is pretty stable.
We monitor our account usage very carefully with our account management and customer success teams, and it's important for us to make sure that our solutions are implemented as effectively as possible to avoid that scenario.
Great to hear. Thanks for taking my questions.
Thank you, Daniel. Our next question comes from Christian Sgro at Eight Capital. Christian, you can go ahead when you're ready.
Good morning, Dan and Brian, and congrats on the strong quarter. The first question, we've already asked about integration of M&A and acquisitions, but the first question I wanted to ask is on your outlook going forward. Dan, what are you seeing in the M&A environment right now? Are you finding companies that fit within Vitalhub strategy, the recurring revenue, EBITDA profitability? Willing to venture to find things that are complementary. Like, how is your strategy involved internally?
We still ideally want to make acquisitions in the government-funded base world for solutions that we think are synergistic to what our core offerings are where applicable, and that's generally where the M&A activity still continues to exist, and we still think there's enough companies there for us to peck away at to get to those levels that we would like to get to. So, we are looking for solutions that would deal with patient flow and journeys and elective procedures, as well as data analytic-based solutions that would give information to hospitals and government agencies on where their patients sit.
We do think there's solutions out there that would be applicable in different geographies and primarily Canada, U.K., Australia, and European marketplace that would meet those criteria. We continue to have conversations with them. They're good conversations because we understand that space effectively, and we understand the domain, so we continue to look at those opportunities.
T hen you got to find those opportunities, and then the principal's got to be in a position where they feel that this is a time for them to do it, and then you still have to get to terms on the financial aspect. They're not easy to come by or easy to do, and we need to be careful. We don't want to make mistakes, so we try to avoid that as much as possible.
We're trying to buy solutions that make sense, that fit into what we do, and we can get them at a fair scenario that's fair to the company on their side and fair to us so that we get a win-win situation on all sides of it. We do have active situations as always, and these things are hard to predict, but we continue to move and hope to keep announcing them on a go-forward basis.
Okay, thanks. That's helpful, Dan. A lot of good deals to date so far this year, all consistent with the strategy. As I think of the broader base of business segments in the U.K., I wanted to ask about another potential evolution within the business, more your go-to-market in the U.K. Have you structured the broader sales and marketing platform any differently with the broader suite of products and offerings? And would you say, maybe as a second question, that you prioritize selling into new trusts or are there good opportunities to cross-sell against the bigger existing base now?
We have a huge footprint in the U.K. marketplace now with all of our offerings, so cross-selling is definitely a key component of what we do, and we do focus on that considerably. That doesn't mean we're not going after new trusts either, or new organizations. Our U.K. group is definitely much more sales and marketing based than our Canadian group is in many ways. They come from that background, and we got a lot of history of people that have been selling and marketing and implementing solutions into the NHS for 20, 30 years in some cases.
We want to leverage those skill sets to cross-pollinate our bases and also to cross-sell within our own sales force so that different salespeople understand all the different solutions, so they can use their contacts and to get to cross-sell those solutions. The group is headed up by Mike Sanders, who is the former CEO of Intouch, and we really have moved it into a U.K.-based group, and they have their own branding and their own world that they're living in.
We do integrate lots of different things with the Canadian groups. The U.K. management team was in Canada for a planning session a few weeks ago, and we do work together as a group where applicable. We like to give our U.K. group a fair bit of autonomy to do what they need to do, and they seem to be pretty good so far at sales and marketing, so we're letting them do what they're good at there.
Okay, perfect. One more question from my end, maybe for Dan or Brian, and as much for your context, as for modeling. Professional services ticked up a bit in the quarter. As we head into the seasonally stronger periods, as we work through the pandemic here, it's starting to feel like it's subsiding. Would you say professional services can keep climbing from here either as a function of demand or utilization? How should we think about the go forward in that segment?
It's hard to predict our professional service growth because as Nova Scotia goes and TREAT goes, our professional services go for the most part. Traditionally, our TREAT implementations, especially as we start moving it uphill for some of these larger base implementations are definitely more professional services savvy as there's a lot of different integrations that need to get built as part of those implementations.
Often, they may want to contract some new features as part of that, which comes into the product, and they pay for that development group. We're prepared to do custom dev with some of our larger base TREAT implementations. Traditionally, we had Nova Scotia doing a fair amount of development.
We do think as they get into the building of what they call My Account, which is the external portal, which is where the phase we're at in that project right now, that's really the phase that's going to lead to the more uptick in the licenses, once we get that built and deployed for them. That's in progress right now. We have some other larger base TREAT initiatives that will also lead to some services work.
Traditionally our U.K. group hasn't done a ton of professional services. Their solutions aren't really that more professional services based out east, so it shouldn't grow linear with that group, . as much as it will go with the TREAT group. You fight seasonality as well, that goes along with it.
Traditionally the summer months, depending on where you are in a project, if we got stuff designed and it's in our development group, we can build because, well, w e don't need the resources to take it to the next level. It's in our step. But if we're, if we need to move projects along through their PMs or through their design phases and we can't get to their people because the holiday's out, we'll delay projects.
There's lots of different variables that come into play there but a s we get more meat on the bone, it gets more predictable. Really, the predictability of the professional services should be looked at as we announce more TREAT deals. I think that's the more applicable based item to understand where that sits.
Okay. Got it. Thanks for taking my questions, Dan.
Thank you, Christian. Our next question comes from Gabriel Leung at Beacon. Gabe, you can go ahead when you're ready.
Thanks for that. Good morning, and thanks for taking my questions. Just two things. First, for Brian, I apologize if I missed this, but what was the expenses associated with the setting up the debt facility and the TSX uplift in the G&A this quarter?
There's approximately about CAD 200,000 of additional costs and professional fees and other fees to set both of them up, to move to TSX and to put the timing in place.
Any of those carrying over into Q4?
There'll be a little bit of legal probably carrying on, but nothing significant.
Gotcha. That's helpful. Thanks. Secondly for Dan, o bviously the U.K. expansion has been super successful for you guys, and you've got beachheads in other regions of the world as well. I'm curious, as you look into 2020, do you think you're going to make a similar push in some of these beachhead regions, similar to what you've done in the U.K.?
And in your opinion, where do you see the best opportunity for that type of expansion in terms of fragmentation of your competitors and just willingness of public entities to help fund some of these growth initiatives?
Yes. I just want to add. We are 100%, or nearly 100%, of course we have your implementation services to it, but we are a SaaS based software company. We're not interested in acquiring clinics or any other type of stuff, which a lot of our peers that we've been associated with in the healthcare world and the Canadian marketplace have done, and we view that as very different marketplaces.
Because we are a 100% software-based company, we don't, we've never have viewed the Canadian marketplace as enough of a growth market to be able to sustain the public markets that and the habits that we're doing. We always felt moving international was a key component and hence we moved into the U.K. and other marketplaces there. Australia with the Jayex solution and some pipeline that we've inherited in the past, we are seeing initiatives and we would like to do M&A work in Australia where applicable.
We still see a fair amount in the U.K. just because of the fragmentation of different vendors in there, and there's lots still more opportunities. We are, . definitely looking in the European marketplace because they do have the same patient flow initiatives and problems that would get associated. We continue to look in those marketplaces.
We purposely haven't gone to the U.S. marketplace yet because of just the venture cap or private equity-based world and the ecosystem of itself really creates a different dynamic in a public investment type of world. It doesn't mean when we get enough significant size, which we're starting to get to that level, that we wouldn't entertain dipping into the U.S. marketplace with those solutions once we can get our narrative solution. because we are starting to incorporate a lot of different solutions in this space and do feel that some of them could be competitive in the U.S. marketplace, but we're not there yet from that perspective.
We continue to focus on Australia, Europe, and the U.K. marketplace, and there's still some work going on in Canada as well that we would like to do, and there are some companies here that would make sense to do some work within the Canadian marketplace. That's generally the areas that we continue to look at.
That's awesome. Thanks for the feedback and, congrats on all the progress.
Thanks, Gabe.
Thank you, Gabe. That's all we have for questions today. Dan, Brian, if you have any closing remarks, feel free to go ahead and then we can close up shop here.
Yes, I just want to clearly state, and I often think it's a difficult thing because we are a Canadian company that's working internationally, so our investors and everybody around us doesn't really understand the opportunity because it's more internationally based. We do need to move internationally.
That's where the acquisitions are, that's where the growth and the size and the target marketplace is, and we've done that successfully. We'll continue to do that. We are Canadian based, but we'd like to present ourselves as an internationally based software company that's moving progressively throughout the internationally based marketplaces.
We're excited about that and we're looking for help from the investors that are on the call, that if they're speaking to their peers or other investors, to really try to highlight what differentiates us between us and some of what they're calling peers that have seen a lot of compression on their stock prices.
We haven't to the degree, but we also think in a comp perspective compared to other software companies that trade on the TSX that have similar or less growth than we do and less ARR than we do and less margin than we do, our valuation is still very attractive relative to those peers, and that's what we view as our peers. We just want to keep highlighting that to our group.
I'm sure a lot of people on the phone, because they do follow us, really understand that, and thank you for following us and doing that we would like you to share that conversation with your peers if you do get a chance to have that, because that really is a big differentiator for us.
Thank you, Dan. That concludes today's Q3 conference call.
Thanks everybody.
Thanks.