Good morning, everyone, and welcome to Pivotree's second quarter 2021 earnings call. All participants are currently in listen-only mode. Following the presentation, we will open the line for a question and answer session for analysts. To ask a question, we would ask the analyst to click on the icon to raise their hand. If you could limit yourself to two questions and then requeuing, that would be appreciated. Before we begin, Pivotree would like to remind listeners that certain information discussed today may be forward-looking in nature. Such forward-looking information reflects the company's current views with respect to future events. Any such information is subject to risks, uncertainties, and assumptions that could cause actual results to differ materially from those projected in the forward-looking statements. For more information on the risks, uncertainties, and assumptions relating to forward-looking statements, please refer to Pivotree's public filings, which are available on SEDAR.
During the call, we will reference certain non-IFRS financial measures. Although we believe these measures provide useful supplemental information about our financial performance, they are not recognized measures and do not have standardized meanings under IFRS. Please see our MD&A for additional information regarding our non-IFRS financial measures, including for reconciliations to the nearest IFRS measures. Just a note, a replay of this call will be available on our corporate investor relations site a few hours after this call ends. Now, I'll turn the call over to Pivotree CEO, Bill Di Nardo.
Thanks, Dennis. Good morning, everyone. Thank you for joining us on our second quarter 2021 conference call. With me today is Mo Ashoor, our Chief Financial Officer. We're excited to be here today with a lot of good news. Q2 results continued to demonstrate strong bookings and progress in our new categories. Of course, some of the Q1 challenges lingered into Q2 as we had previously indicated they would. We're also really excited to be able to announce our acquisition today as well. We do believe the investments we've made to growth and drive growth in new categories and land businesses within our target market of large retailers, branded manufacturers, and wholesalers, they're bearing fruit. I think these are the activities that will set us up for long-term growth. Thanks, Mo. The bookings momentum continued for us.
We had strong Q1 bookings, as you know from our last conversation, and they continued into Q2. Total bookings were CAD 10 million. They were up 30% year-over-year. Our year-to-date total bookings at the end of Q2 was CAD 21 million, and that is up 47% year-over-year. We think this is a really good leading indicator. We have talked about this previously. Again, no surprise, a lot of this came inside our professional services business. This is where the projects are kicking off, and we are really starting to see the return to spend. We drove non-recurring bookings 84% higher than they were a year ago. Again, really good strong quarter in that regard. We are seeing large retailers and branded manufacturers continue to make those strategic investments.
We're going to share some information about just general market trends as well, and this continues to be in line with what we would've expected to see. Again, although some of the non-recurring bookings means some of our revenue mix is going to shift. We didn't see the same recurring revenue bookings growth that we had last year. Again, a lot of that had to do with the pandemic. Still approximately 70% of our total revenue is in annual recurring. That's driven primarily by managed services. Again, good leading indicators of what we expect to convert over time in our drive towards this frictionless commerce industry that we're helping build. Next slide, please. Thanks. Our total revenue for the quarter was CAD 14.4 million. This does look like a 3.7% decline year-over-year, but on a constant currency basis, we did grow 4.6%.
The recurring revenue was impacted by the churn melt that we discussed in Q1. That does have a lingering effect, including the CAD 500,000 from the first quarter. Making no bones about it, we will continue to see some pressure on the Oracle side of the business. Again, as we start getting into our largest, most complex customers, we do expect to see that slow down. We're actually winning business to help many of our Oracle customers move to other platforms now, which is another good leading indicator. We'll see revenue shift, we're really looking for key client retention. We've moved a number of our customers over to AWS on the Oracle platform. We're also moving them to new platforms like VTEX and Shopify Plus. This was a good quarter for some of that work and some of those initiatives.
The non-recurring revenue in the second quarter was CAD 4.4 million, similar to levels reported in the prior two quarters. It is a bit misleading. That CAD 4.4 was heavily back-end loaded, more than 40% of that coming in the month of June. You can kind of do the math, but it is also holding up in July and August, and we expect that you'll see the full effect of that transition in June bearing out in the Q3 results. Again, excited about the results, what the leading indicators are telling us. Also very consistent, as you'll see on this next slide, with what's really happening in the market. We talked about this last year at the IPO. We continue to talk about it today, which is for our customer base, this has been a decade-long march.
You can see the consistent overall value of offline and online over the last 10 years. You can see during the pandemic what a substantial lift in online occurred. They jumped at 20% + growth during the pandemic. What you'll see now as well is, as many predicted, the whole online is continuing to grow, but regular retail did bounce back. People do still want to go to stores, and they still want to have an experience outside their home. Some folks, more than others, do want to get out. You have seen that the e-commerce growth has trailed off a bit, but it's still solid growth. Again, we continue to see year-over-year increased penetration of e-commerce.
Again, when you look at the overall value in 2021, it has dropped down from the 20% to the 18%, which is still significantly higher than as we exited a normal period before the pandemic, closer to 14%. We really continue to be on a global march, increasing the overall importance of digital channels. We don't think this is going to slow, and we do believe that our customers are going to continue to spend well into the future, much like this chart shows they've been doing for the last decade. Again, just a reminder, our customers were not racing to go online during the pandemic. They were already there, many of them already doing billions of dollars, and they're going to continue to move towards digitally assisted transactions. With that in mind, we look at what we've been investing in.
Our recent wins support our frictionless commerce strategy. We continue to talk about, and you're really going to start to hear us reflect much more on the categories and how each category is doing, but in the commerce category, we've talked about the headwinds of Oracle, but they're really getting offset in some respects with the growth we're seeing in VTEX. We had some great success with CAE, and I think really the conversation we like to have in this area is we're winning with the right customers, and we're moving them to the right technologies. We're really pleased to see the success we've had with a terrific partner in VTEX, and a shout-out to them with their success in their IPO recently. On data management, the new version of DIVE Machine Learning continues to have some growth and success. This is IP that we've built.
It's taken a little longer to see the flywheel fly, but we're really now starting to see more customers appreciate and understand this high degree of automation in data transformation. Again, cloud is a critical category for our customers today in cloud transformation. This category is growing for us, again, double digits. Again, today we're really excited to talk about the fact we've just entered a new category. What really pleases me, though, is the amount of time we've already spent in the category doing work with this partner, and now we get to talk about the fact that this is a category we are in a principal position, which really takes me to the next slide. I know you've all been waiting patiently, I do say that with a bit of cynicism, for us to announce our first acquisition.
It's been a few months, but it's arrived, and I'm thrilled to report we have signed the definitive agreement, and we are going to close next week. For anyone that's asking why, I don't want to put a close before the end of the month for our accounting team, which is a nightmare to try and close a pre-month end. We're going to close next week, but agreement's signed. We're done. We're excited about getting going. The great news is, just before we closed as well, or sorry, signed, we signed a new piece of work with one of our biggest customers in this category. What's exciting about this is we have experience. We've been working alongside the Bridge team. We have lived experience together. We know their products and their people, and we're really excited about their people.
I'm really pleased that this is the first one we brought into the fold because it checks so many boxes for us. It gets us into the category we care about, supply chain, and particularly with OMS and WMS solutions. It gets us immediate scale in the category, and we did it right up the fairway on valuation ranges that we've been sharing with you guys from the very beginning. This is what we expect to keep doing. As we've discussed, we have a number of these that are active, but we're really thrilled that this is one of the first ones we got out here. This is a market that Gartner sizes at about CAD 2.8 billion, this particular OMS/WMS, and it's within a CAD 4.9 billion supply chain category, and they expect to double over the next five years.
That's how important this category is to our types of customers. Bridge brings expertise both in Sterling and Fluent Commerce. So like our business, they really build and help large enterprise transition infrastructure from older technologies to newer. Particularly Fluent is one we're excited about, and it's in fact how we met them. A number of our customers were looking to do Fluent transformations, and we were pointed to Bridge as the expert in this area and one of the leading partners in that technology. So again, I just want to say how pleased I am and also thank our team who have worked tirelessly over the last many months completing thorough diligence and helping set this business up for success, and I'd really like to thank Jim and Doug and Senthil and Mahesh for all of their hard work on their end to help drive this transaction forward.
First mission accomplished, many more missions to be executed. Just on that, we do continue to have a robust M&A pipeline. One deal doesn't make us an M&A machine, but we do have a number that we're continuing to pace. We've got a good network of deal sources, and it's yielding consistent targets. We've identified 53 opportunities for this quarter that are in various stages. Again, one of the key challenges and one of the things that we'll continue to manage a conservative pace is finding all the right boxes to be ticked, the categories, the products and services, the growth, and the valuation. It's those combination of things that make for, I won't call it the needle in a haystack, but it's not just picking fish out of a barrel.
It's finding the right culture fit. It's finding a number of key attributes, not just for short-term deal announcement success, but for long-term, let's grow this business and let's really win in the Frictionless Commerce. Again, I point to, I think this first one's a great indicator of the kind of deals we want to continue doing. The themes going forward really will be around data management and integration. One of the things we're really excited about is really the whole data transformation and automated data transformation, and we're seeing some great opportunities there. We're aggressively pursuing some enterprise cloud and cloud security. These are really the key themes, and you'll see us continue to look for those enabling technologies that are going to help each of these categories.
For anybody asking what the plan is, we continue to pace as described, I think we'll hit our targets that we laid out for the number of acquisitions that we would get done this year. Thanks to the whole team for keeping me on target for those commitments we've made. Let's turn it over to Mo to give us a bit of a review on the financials.
Great. Thanks, Bill. In the second quarter, we saw a continuation of two underlying trends affecting our financial performance. Our bookings activity continued to be very strong in the second quarter, and we have record year-to-date bookings driven by new project activity and the investments we're making to build our business in frictionless commerce. As Bill said, we have converted these bookings to revenue at a much higher rate in June than April and May. We continued to book project revenue at the higher rate in July and August. We expect the second half of this year to start looking better. Slide 14, we're going to do things a bit different here for this earnings call. It shows our Q2 P&L as you're used to in more detail. The key highlights are revenue growth in constant currency of 4.6%.
We did see the margin decline to 43.6%, and our OPEX increased by CAD 1.6 million. To help provide better visibility to these year-on-year changes, I'm going to walk through a couple of waterfall charts on the next slides. This slide shows the waterfall walk from the CAD 14.9 million in revenue reported in second quarter of prior year to the CAD 14.3 million we reported this past quarter. This represents a 3.7% decline, but was 4.6% growth in constant currency basis. The main driver of the decline, foreign exchange, and CAD 2.3 million of melt and churn of Oracle and legacy data center hosted customers, which is the main contributing factor to the net revenue retention rate that we reported of 78%.
The growth areas of our business were not enough to offset this quarter. As discussed, we are billing professional services at a higher rate now and expect this to improve in the second half of 2021. We had CAD 0.8 million of revenue growth from projects related to the new investment areas we've been speaking about. CAD 0.3 million growth from our data management deals. CAD 0.6 million of growth from new and upsell on Oracle managed service, which included migrating customers to the cloud. The bulk of our growth was CAD 1.2 million in professional services work around platforms like SAP. The bottom line of gray boxes shows a similar walk of gross margin, which was 43.6% of revenue in Q2, compared to 55.6% of Q2 from prior year. The managed service churn and impact to our revenue mix impacted gross margin by four percentage points.
The new investments that we're making in professional service for new technology was about 3%. We had government relief in the 2nd quarter of the prior year due to COVID, which we did not have this year, and that impacted gross margins by about 3%. We're trying to be transparent here and help investors understand the factors that led to the revenue and gross margin decline. We think it also helps to see and illustrate where things are improving. We expect more revenue from our professional service in the 2nd half of this year, and this will continue to pressure gross profit margins because of mix. Our investment in new revenue and associated margins will start to improve.
When we start to book more managed service revenue from projects that we deploy, then we can start to see the mix improve, and therefore our gross margins getting back to our target of 50% and higher. Moving now to a waterfall on the OPEX spend and the increase over prior year. This waterfall will highlight the key contributors, going from the CAD 8 million that we've had last year in Q2 to the CAD 9.5 million. Consistent with the message since we've gone public, we've increased our sales and marketing effort, which is contributing to the booking results we've shared. We've added spend in new categories and products, and you'll see that as CAD 300,000, to help support and fuel our growth in new technology and services.
As a public company, we are also now recognizing expenses related to our employee options program, which we didn't incur prior year, but we did have a catch up in Q4 2020, and that explains some of what you've seen in our OPEX increase. Summarizing the highlights of the balance sheet. At the end of Q2, we had approximately CAD 48 million in cash, and with the acquisition of Bridge, we will have CAD 5 million due on closing. Between our cash balance and access to credit facility from Bank of Montreal, we have plenty of room to drive accretion in the business through our acquisition strategy. Particularly at the valuations we are executing on, I think it's worth emphasizing that this capital will get us to a much larger revenue base than we have today and without further dilution.
I'll end it here, and we'll open it up to Q&A.
Thanks, Mo. We'll now take questions from the analysts. As a reminder, please click the Raise Your Hand button to ask a question. Our first question comes from Robert Young at Canaccord Genuity. Rob, can you hear us?
Yes. Can you hear me?
Yes.
Great. I wanted to ask a couple of questions about the churn and melt you were talking about. You were talking in previous quarters about some clients who were shifting some of their revenue from managed services into professional services. I understand there's some Oracle business that you're losing, and some of it is transforming to other business. Maybe if you could talk about that dynamic a little more, trying to understand how much of it is actual net loss of customers and how much of it is customers that you're building business with on a longer term.
Yeah, it's a fair question, Robert, and Mo probably has some more details to add to this. Really, if you think about the way we think about the three buckets of Oracle, there's the ones that we started seeing shift off, and there was even some acceleration that surprised us a little bit in Q1. These tend to be the smaller, less complex. Many of those customers were absolute loss in churn. They're moving to other platforms, and probably ones that we're not as likely to support. There was some melt that you were very familiar with. We talked about it. It was customers who signed up for some services in the middle of the pandemic then had their boards and managed executive teams call down spend levels. A bit of a mix of both.
The ones that have maybe overbuilt on Oracle previously, the ones that have gone out of business, had to restructure, those tend to be at the top of the funnel of change, right? We've seen a large quantity of those reflected in this first phase. The second phase are ones that are going to be with us maybe for, let's call it 18 months, they're the ones we're working with now on a more of an accelerated let's get them onto a different platform. We did one this month that we moved to Shopify, one that we're moving to Magento, we have a number that are teed up to move to VTEX. Initially, all of those look like they are professional services for managed services. To your point, they'll affect the NRR number, they're retained clients, they're spending with us in other ways.
Some of those very same clients have actually also just recently purchased some services from us in supply chain, and our new security watch bundle. One of the customers that melted on Oracle but stayed with us is now signed up to our new security bundle that we've laid out. It's changing where they're spending and how they're spending. The first block were a lot of folks leaving. The second block are a number that are going to be moving. The third block, and they actually represent our biggest and most complex, they're the ones that are actually signing new three-year contracts on our Oracle platform. I wouldn't want to give the market the indications that Oracle's going to be with us for 10 more years, but that's where it starts to look a lot more like an asymptote. These folks will be with us.
They'll be buying a number of different categories and services, and they'll continue to be using the Oracle platform. Really three buckets, broad buckets. You've seen a big piece of the first bucket move, and it was the second bucket of people we thought would be a little longer, had slid into the first in Q1, and that's what caught us a little bit by surprise.
Okay. Then the bookings and professional services that this leave had good revenue in professional services. We talked about the cadence of how that shifts into managed services over time. I think, Mo, you said second half trends are looking better. If you can give us a little more color around how we should expect the managed services business to sort of pick up, any timing would be helpful.
I think the couple of things I can tell you is what our product team is doing and why we invested a lot in that, going back to the first quarter, is they are building those managed service bundles that we would call next generation services for SaaS platforms. They're building the managed services bundles around our security packages, again, more geared towards a convergence of SaaS platforms that need to be secured. The uptake has started. We've seen our first VTEX customers starting to sign up for VTEX managed services. We've seen a number of our customers sign up for our new security bundles. I think what you want to do is keep an eye on the new product announcements. They're really being driven by customers asking for these services, and we're packaging them up and now starting to make them available to the market.
You're starting to see the turn even as we speak. I would also tell you that in the acquisition of Bridge, part of what attracted us to them is they also bring managed services right out of the gate. This isn't something where we have to go help them build their managed service bundle on top. They've got it, and now we're going to accelerate it. Again, being conservative, my expectation is we start to see things really turn Q4 and into Q1, really. We're going to start to see some things level in Q4 as customers really lock down for the holiday season. Again, optimistically, I'd like to say that we'll see some of the lift in Q4, and conservatively, I'd say we'll start to see the real turn in Q1 on managed services.
Okay. The way you talked about Bridge, 30% managed services, that seems like a healthy amount for a company of their size. When you think about the gross margin profile, 45% or greater than 45% and 30% managed services, what does that look like under Pivotree? Is that accretive to those metrics under Pivotree, or is there work to be done to get that to where you guys said?
Yeah. I would say it's a bit of both. Out of the gate, it should be accretive. We don't want to settle at a CAD 10 million business here. This is something we want to absolutely accelerate growth. You might have seen some recent announcements where the two technologies that Bridge is expert in have just become the Adobe default OMS systems. Word on the street right now is that we really need to gear up for next year. Expectations are that this is really going to hit an accelerated curve. We're going to want to make sure we're staffed, we want to maintain leadership in this. I would tell you that we're going to continue to invest for growth. Again, what had us feel very positive about it, they're starting from a strong position that leaves room for us to continue investing.
If this isn't pacing at that doubling that we just reported Gartner over the next 3 or 4 years, I think we'd all be disappointed. This is a growth story. I wouldn't ever want anyone to think any of the acquisitions we're doing today are designed to accelerate our cost takeouts or accelerate our short-term margins and profitability. They're about solid foundations that at a larger scale will produce the results we're looking for, and our goal is to drive scale.
Last little one, then I'll pass the line. Just the customer base, you said that you had lived experience with them. They have a Fortune 500 customer base. Maybe you just talk about opportunity. Are they adding new customers, or would you have a lot of overlap with all of their customers today? Is there opportunity there?
No. We brought them into two customers. That's why we've got lived experience together. Those are going extremely well. In fact, that was part of that whole reference process as well for us was this was a big acquisition, and I don't mean dollar-wise. It's an important first step. No, from that perspective, we've got two active customers with them. They bring some fantastic customers. You go to their website, you will see the kind of people, global supply chain leaders that they do work with around the world. This is great from the customer profile, the understanding of how to work with large enterprise. The other thing that probably is getting missed, because Rob, you know how conservative I am about IP, these guys bring real IP. They've been building control towers and commerce connectors.
They're really just starting out on the journey of getting more of their customers onto the IP. This is where I think our customer profile is really going to value some of the work that they've been building internally. We're really excited about what this means for the future.
All right. Thanks, guys. I'll pass the line.
Thank you. Our next question comes from Jesse Pytlak at Cormark Securities.
Morning, Jesse.
Good morning. Can you hear me?
We can.
Yep.
You just muted, so now we can't.
Okay, how about that?
There we go.
Okay. Just to kind of follow up on Robert's questions about Bridge Solutions, I guess now as you kind of think about the capabilities that they bring to you, are there other kind of areas or subcategories in supply chain execution that you still need to add, or does this kind of really fully build out that category competency for you?
No, I would say in almost every category we're in, we're at the start. We're not midway, we're not at the end. Part of the reason I say that, Jesse, is every category is transforming. Every category continues to evolve. I'd say this is step one. There's many aspects to supply chain fulfillment. They have capabilities in many of them. I won't say that all of them are at scale. This is where we may look to start adding to build scale in some of the areas where, again, they've started, but they haven't necessarily matured those categories yet. Again, if you look at Gartner, they'll break that down into a number of different categories. One of the areas I don't think we're racing to right now, but ERP and resource planning is certainly part of this category.
I don't know that it's the first place we would go next, but we've been entertaining part of that. Again, because it's one of the areas our customers are telling us they need help with. It is a little further off from where we think Frictionless is going, but it is a very large category with many subcategories in it. It's part of what we look for, right, is new growth vectors within the category.
Okay. Thank you. Just kind of switching gears over to the cloud-based disaster recovery product that you launched. Can you maybe just talk about the success that that client's seeing with it and any success you might be having in trying to sell that solution into the balance of your customer base?
Yeah. Look, what I would tell you is these kind of new technologies are not deployed overnight. That is in flight still. There's some really interesting learning. A lot of the technologies we're using are new native AWS tools. This again is a story that I think is worth telling, which is our customers want to take advantage of new advances inside technology stacks like AWS. But it's really the application of those against a thing like Oracle, a complex beast. That's really where we bring a convergence of capabilities. Again, the customer comes to us because they've identified opportunities that they want to take advantage of, disaster prevention, disaster recovery. We bring the expertise in the two areas that can make that happen.
I would say you're going to see continued work because people are going to stay on Oracle for some time, but this is how they're going to advance their steps towards frictionless, is making sure systems don't go down and stay down. This DR solution has garnered interest from a number of our other customers as well. Maybe back to Rob's other point, as we sell more of these types of services, you start to see the return again on the NRR, is it's a different type of solution now that we're selling. It wasn't an old rack and stack data center. It's transforming the managed services onto the cloud, but with Oracle.
That's great. Thanks. I'll hop back in the queue.
Thank you. Our next question comes from John Shao in National Bank. Please go ahead, John.
Hey, guys. Congrats on the first M&A and strong bookings. My first question is around, how compatible is the Bridge solution to your existing customer base from a technology perspective? Just trying to figure out the cross-sell opportunity and what is the go-to-market strategy of the combined company?
Yeah. What I can tell you, John, is what attracted us specifically to this company was the number of customers we have on Sterling. It is very large. I can't give specific details here, but it's very large, and the number of customers that have talked to us about transformations to things like Fluent or the next-generation Sterling capabilities. This is why we selected Bridge, is because of a high penetration rate. The low-hanging fruit, obviously, is cross-sell into our existing customer base. We also know that this transformation going on in the marketplace today is enormous.
I will tell you, though, from my perspective, the next generation of products I want to see coming out of our company is really moving Bridge into our product factory, and how we take their expertise and their capabilities and start solving some of the really interesting problems that are going on today. Which isn't just about a technology stack transformation, but a simple example, how do we start connecting people's supply chains to the gig economy and helping them test same-day deliveries, and possibly even same-day returns? There's really interesting challenges that are starting to evolve in the market people want to experiment with. We now have the division and the arm and the capability to do those experiments with them and help them explore some of these new alternatives. That's where I think we're going to attract the new customers.
It's not just talking about, "Hey, let's transform your existing tech stack." It's, "Let's talk about how we transform the way you do business with your customers." That's the reason I'm so excited. You guys eventually will meet Jim and Doug, but they understand the space extremely well. I think they're going to be real leaders with us in this transformation.
Okay. Thanks. That's great color. Do you have an estimated or a head count of the Bridge? Just trying to figure out the size of the company.
Yeah. It's about 130 employees. Large part of them is in our India office and location.
Okay. Last question from me. On the future M&A size, could you please provide us an estimated timeline for the deals in the pipeline? Is there something we should expect in later this year or early next year?
I don't know. I feel like you're just setting me up, John. I know everybody has been waiting to hear the announcements. I was kind of hoping the first one would satisfy people's appetites for a while. It just doesn't benefit me to put a date on things. I can tell you that my intentions, what's available to us to do right now, as everybody knows, I have multiple signed LOIs that are in various stages of diligence. As everyone also knows, until they're closed, they're not closed. Goals and intentions are one to two more this quarter. Sorry, one to two more inside this year that I think will benefit before the end of the year, we'll see revenue added to the business. A lot of things can get in the way of deals getting done.
I won't say definitively, but I'll say plans and intentions are one to two more before we finish this year.
That's fair. Thanks. Pass the line.
Thanks, John.
Thank you. Just a reminder, to ask a question, please click the raise hand button. I do not see any further questions, so I will turn it back to you, Bill.
Thanks very much, everyone. I appreciate you taking an interest in the business. I'm really pleased that we could show up today and deliver on some of the commitments that we've been making since we IPO. Not the least of which, of course, is this wonderful acquisition with a terrific partner. We're really thrilled about what this is going to do collectively for the business. The obvious short-term effects are we'll see some revenue lift, we'll see some engaged customers. We'll actually have to spend some time, obviously, getting the integrations right. Our businesses are already actively working on that now. Again, I'm really pleased with the quarter bookings and continuing to see demand grow, particularly in the areas of new. We've talked about this now for some time.
There's going to be this continued balance between the shift in mix, the decline in Oracle, and the rise in a lot of the other new businesses that we're investing in. What I can say is we had some good, strong tailwinds pushing this quarter. We've got a little bit of headwind we're still fighting through, and I think we just put a windscreen up with Bridge that's going to help us plow forward aggressively. Overall, pleased with the quarter. Hope the market agrees, and we'll look forward to speaking to everybody in another three months about hopefully the next acquisition and some more positive results. Thanks, Mo, and thanks, Dennis.
Thanks, everyone.