Morning, everyone. Asiya Merchant here. I lead Citi's Tech Hardware and Tech Supply Chain. Day three of Citi's TMT conference. Absolutely delighted to have David Kennedy here. He is the CFO of Dell Technologies here, and we also have Paul in the audience from IR. I am going to start off with just some safe harbor statement here that Dell would like me to read, so please bear with me here. This presentation contains forward-looking statements based on Dell Technologies' current expectations.
These statements involve risks, uncertainties that could cause actual results to differ materially. Factors that could cause results to differ are discussed in Dell Technologies' periodic reports on Forms 10-K or 10-Q filed with the SEC. Any forward-looking statements made today are based on assumptions as of today, and Dell Technologies undertakes no obligation to update them. With that, first question is going to be about outlook.
All right. Good morning.
So, clearly just results that are just staggeringly amazing, right? You guys just reported last quarter, last week, I should say, and your current to your fiscal 2027 guide is up 70% here on your tracking. Of course, we are at an investor conference with a lot of investors being very skeptical, like is there a cliff ahead after these growths, which are so much higher than, let us say, your analyst event, right?
And where you guys thought about. So just given there is pipeline, you have a very solid pipeline, you have very solid backlog, there is supply constraints at the same time. What gives you the confidence that this momentum continues, not just through this year, but as you think about the outer years and there is not a big demand cliff that we should be aware of?
Yeah, sure. Good morning, everybody. You are right. Look, what we see is this accelerating appetite for infrastructure. I think we have seen these building blocks emerge over the last nine, six, three months, and it builds on each other. Obviously the tailwind of, from an AI server GPU perspective, we booked $6.1 billion of orders in Q2. We had booked $6.1 billion of orders the previous three quarters, so $13.2 billion over 12 months. You see this accelerating appetite. It is also pipelines being multiples of that backlog. So while the bookings keep coming in, the backlog continues to get bigger, and it is across all the segmentation you can think of, neoclouds, sovereigns, enterprises. Enterprise is growing the fastest from a rate perspective. Obviously, the dollars are still pretty big on the neocloud side.
You then put another layer on top, which is from an inferencing workload perspective, so your traditional data center. That had a modernization refresh cycle happening anyway. You now put inferencing and AI workloads on top of that. An emerging theme we have seen in the last three months around security and resiliency. All these components are driving. If you look at our Q2 results, we had 122% growth in traditional server. Demand was faster than the P&L. It is broad, so if I look at that by geography, every geography growing triple digit. If I look at it by customer segment, if I look at it by customer vertical, all these boats are rising. It is not one corner or one niche piece that is kind of floating it.
You build that, and now you introduce in our Q2 results the need, as you use more tokens, do more inferencing, need more compute power for the data, you now need somewhere to store it. So our storage growth of 26%, and we have guided to double-digit growth for the full year. We are watching all these signals, and we are watching the customer count still be fairly early in the adoption curve, and look at the pipelines, and now all of a sudden, we see that confidence that allowed us to guide what we have guided, and allow us, I think, to think about beyond into next year, too.
Yeah. Then you marry that with CPU, or I should say constraints, not just in the CPU side, but obviously we have all heard about memory constraints, HDD constraints. Is there any line of sight to maybe when these constraints sort of ease or normalize? Could there be more upside here even in the back half of calendar 2026?
Yeah. We will go piece by piece. If I look at the back half of this year, in one word, I would call our guide a realistic guide. I think I would have positioned our second half guide 90 days ago to be a prudent guide. I think we see way more identification of parts, of customer needs, of data center readiness. All of that picture is guiding to the 192. Demand is still faster than supply, though, for traditional server and AI server.
So those two buckets continue to have demand that was really robust. As we look into next year, we see the supply differential only getting worse, not getting better. We see, yes, there is a small bit of supply growth, but it is pretty minimal on the basis of the demand signals that we are seeing. It is actually tighter next year than it is this year in relation to that, as we look out, then we will see as we go beyond from that perspective.
Okay. And within that supply constraints, is it just memory, CPUs, HDD, the usual? Are there any other pockets that are getting worse?
Obviously, dominated DRAM and NAND is by far the big brother in that equation. Given the growth in CPUs, obviously that now comes into the equation also. But look, ultimately, any part associated with an AI box is short to some degree. So, opticals, transceivers, T-glass, any component that is in there is constrained to some degree, and that is Our job then is to try and figure out how we can put all these real golden parts, if you like, together into fully configured units to maximize the P&L, and that is part of the operational execution that we have talked about in our guide and to differentiate versus the competition.
Great. Jeff, on the call, did talk about this earning greater, longer-term visibility with large, sophisticated customers.
Yeah.
Is that a function of the supply constraints that you are talking about and Dell kind of executing at its best where, like you just mentioned?
Yeah, I think the conversation in the market is around supply access.
Yeah.
If you go back to, let's go back six months ago, was there a few savvy customers who foresaw some of this and did some advanced purchasing to kind of get ahead of that game? Yes, there was. But what we are now seeing is, if any pick an enterprise customer, they come forward, I know their buying history. If all of a sudden they are looking to buy four years' worth of equipment from me, I am not in a position to fulfill that.
Our job is to try and make sure we diversify to as many customers as we can and solve as many customer needs as we can. But what we are doing now is entering into conversations about what are your supply needs and your infrastructure needs going out into year two, year three, and year four. Our commitment that, for those who want to partner with us, we will give them that supply access and provide some guarantees that we can position that for them as we look out. Guarantee supply does not guarantee price. That is a specific differentiation, but that is what the market is looking for, it is that supply access.
That is fantastic. ISG margins, like eye-popping 15%.
Yeah.
This is in the face of AI servers, which, within that segment.
Yeah.
Very lower margins, well above 3X almost relative to what you were looking at year-on-year in first half. Pricing probably a big driver here of those margins, just given the pricing pass-through of some of these components. What has changed here, and why do you think that could sustain?
Yeah. If you think of ISG rate, there is two tailwinds and one headwind. By far the biggest tailwind is scale. I might touch on it later, but when you think of our OpEx as a percentage of revenue for the company, we have just guided to 8% of revenue. That is the most efficient we have been ever in the 42-year history of the company. To give some kind of marker, that was 20% of revenue six years ago. That is one piece. Part two is the storage portfolio. As we have launched and drive our Dell IP storage portfolio, we have now had six consecutive quarters of demand growth, almost 2x the market.
Obviously, a lot of software and service components to that, so the margin rate enhancement from our storage portfolio will lift ISG profit. To your point, we are using those two levers to be able to absorb the demand in AI. So almost 3x growth to $74 billion for the year, and mid-single-digit margins. We can absorb that with the two other tailwinds and give the outcome that you see, which is record outcomes.
Okay. Within that, you also have servers, right?
Yeah.
Traditional servers, I should say. Just because these are built on next-generation infrastructure, next-generation core processors, are you thinking about higher margins even for these products?
No, I think from our portfolio, if you think of commercial PCs and traditional servers, it is about more a sustained margin rate. Look, we are trying to make sure we can give as many customers access to the.
Right.
Compute power that's there. Our margin lever is storage. That's our margin lever. Then to lean on the scale of the company.
Right.
As we do that.
I mean, that's pretty impressive, too, just given the memory inflation.
Yeah.
That we have seen, that you're able to sustain those margins in your core compute business. Okay. AI backlog, I think you guys talked about $95 billion.
Yeah.
You do have a growing presence of enterprise customers in there, almost greater than 6,500 now. You have talked about both sovereigns and enterprises growing faster. Obviously, the neocloud dollars is much bigger. As you start to drive the sovereigns and enterprises to revenues, what is the attach rate to those AI? Could that AI pipeline, and as it becomes revenue, have higher margins associated with it?
Yeah. I guess there's a few things in that. I think our value proposition in terms of the wheelhouse will be that on-prem enterprise customer-based demand, which is going beyond the GPU.
Traditional server, CPU-based, so those tokens generating compute power, which generate the data, which generates more tokens, would you then need storage? So that inflection point in particular of the storage growth, that enterprise lift that we see, which we still think is very early in its adoption curve right now. I mean, you mentioned the 6,500 customers. That's up over 60% in the last six months.
Right.
But it is also, you could argue, the infancy of, we serve tens of thousands of customers, right?
Right.
We would argue likely a low percentage, pick a number between 10% and 15% of enterprises have only done meaningful AI agentic modernization within their company. The rest either haven't started or are on the early adoption and kind of proof-of-concept kind of stage. So that element of an end-to-end portfolio from an Edge PC up to your storage device, that's the wheelhouse. Are there attached motions tied to neoclouds also from a storage and a CPU server perspective? Absolutely. And we'll look to play there. I think we'll see a better conversion rate for sure on the enterprise.
On the price side. And do you think that the storage opportunity could be as big as the AI opportunity, AI compute opportunity for those enterprises?
Yeah, look, I think you're not going to see in terms of the same dollar value, but the opportunity, if you look at our guide for this year, we're adding $2.5 billion of storage revenue to our P&L.
Double-digit growth. So that's something you haven't seen us do. This will be a record storage quarter for the company's history. I think the more and more you see these inferencing workloads and enterprises adopting these use cases, I think we feel it's pretty durable and robust that it kind of lives on as we kind of go multi-year.
Okay. When we talk about that enterprise adoption, there's always been this debate, like, what is it that enterprises What is it from a TCO perspective that's getting these enterprises to do it on-prem?
Yep.
Clearly, they have access to the cloud. So what is it, like how is Dell quantifying those economics to these 6,500+ enterprise customers that's getting them to deploy this stuff on-prem?
Yeah, look, the best example I can give is to use our own company as customer zero, if you like, right? One of the big ahas we get from enterprises when they come into our executive briefing center and they want to have a conversation about AI, and it's not as dumbed down as this, but it's almost, "Hey, help us turn it on and the world is better," if you like, right? Whereas the reality is, there's quarters and years of work to do before you can supercharge the AI in the first place.
We spent the last three years in our company standardizing and automating and simplifying all the different processes and workflows and cleaning up the data in the company. Many enterprises are the same. We're 42 years old. Through nobody's fault, we've had acquisitions that we've done.
Sure.
We've empowered different teams in different geographies to create their own ERP systems. Ultimately what that does is the data doesn't talk to each other within an enterprise.
Right.
If I apply AI to that, it can't access corners of the company to fully supercharge an end-to-end workflow. You have to spend, and it's enduring work. It takes multi-year, and it takes a cultural shift in a company. We were very lucky in a founder like Michael, who stood up in front of the leadership team three years ago and pitched this concept of modernization. In other words, "If we don't do it, somebody else will do it to us." You see that, and where you now see the inflection point is every enterprise customer needs to identify where their value comes from. For us, it's our supply chain, our products, our services team, and our sales team. Within that, AI can be used as a power of productivity, whether that's growth, whether that's product roadmaps, pick your idea.
Every other function should be using AI from a scale and efficiency perspective then, including my own function in finance. Ultimately, then you find both the decoupling effect of, I can grow faster, I can scale my business through OpEx spend, and they're not linked anymore. So when we talk about our 8% of revenue, that is now structurally based.
It's only going to get better. It's not going to go back to, well, if I need to grow, I need to add some more variable cost in. We've divorced those two things. They will stay permanently divorced. I think enterprises that we showcase and we bring them in, they're seeing some of that. But I think they'll all be on different curves. Some will go faster, some will still resist. So I think it'll take time for the broader enterprise to get there.
Okay. When we think about workloads, like the ones that reside on-prem, private clouds versus those, companies are probably still using some sort of public cloud.
Yep
Maybe for certain workloads. Just as you think about that, any kind of, how you think about maybe the split between that, like, do you have any kind of forecast that you think about across the board?
Yeah, I mean, if you listen to the Amazon earnings call from a few weeks ago, they talked about 85% of the data is still on-prem.
Yep. Mm-hmm.
If you look at that perspective. Look, ultimately, it is going to be about the cheapest token you can have is the one that is closest to the data.
Right.
For a big, take a finance function, like is doing linear planning, decision-making, and processing. You do not need a frontier model to do that. You can work off N minus one, N minus two models. You can do anything from Power BI up to the lowest form of AI. You can do all that on-prem, on your edge device, in your own data center, on your powerful PC. Obviously, there are also proprietary information that drive value for your company that you want to keep in a sandbox and keep away from everybody else.
Then there are legitimate workloads you need to send to the cloud in a hybrid world to get supercharged compute power from a large language model perspective, and look at that. Finding that right equation and balance will find you the right cost structure and efficiency, and that's why we think there's a strong value prop for the on-prem piece of it. Because we sell across the portfolio, it bleeds into our storage portfolio in particular, which is where the value creation can be for us.
Okay, wonderful. We've seen a transition from full rack solutions. We started this AI journey, it was all about just GPU chips.
Yep.
Now we're starting to see full rack solutions come out from some of the largest chip makers. How do you think about Dell's addressable market opportunity in this space, as we're getting more and more complex?
Yep.
In some cases, there's disaggregated architectures as well. Yeah.
Yeah. I would say complexity is our friend.
Okay.
We're pretty agnostic in terms of if a customer in any segment is looking for something they need help with to build, we're available to build it with them and have that conversation. Obviously, we've a deep and fantastic relationship with NVIDIA today. The majority of our business is with NVIDIA today.
Right.
Ultimately, when I say complexity is our friend, we bring, and we've defined the value we're bringing to the conversation. So this idea of Time to Token, for any multi-billion dollar deployment, we're on average four, five, six weeks advantaged in that differentiation to the customer. So, in that Time to Token, the economics benefit they can get from that, because it's monetizing, is worth all the conversations.
So when we procure the inventory to build it, to ship it, to install it, to deploy it, when we turn it on, it stays on 99.9% of the time. We use far less parts than everybody else in terms of that uplift, and we white glove that service, so you get an engineering team and a pod that helps the design of a neocloud design T-minus three months, goes through 30, 40, 50 iterations. They are also the ones who will turn it on and make sure it stays on, and almost live on site there as distinct to with us in Dell. So you have that end-to-end kind of relationship. The other piece is, because we sell across the portfolio, we can be more fungible with the supply that we've got.
One tangible example, we would have taken a decision in the springtime foreseeing the PC market, particularly in consumer, was going to get squeezed a little bit. It is projected to be minus 18% to minus 20% on units. We purposely sent some of our wafer supply for consumer PCs and reconfigured it for infrastructure for the second half. You cannot do that quickly. It takes 5, 6, 7 months to do that. But we made some of those bets then, which allows us then to enhance some of our guide for the second half of the year. That fungibility is a good asset for us, too.
Okay. And it is often lost. Investors will often ask me, but, and this moat that you have talked about, this time to deployment, which is critical in terms of monetization-
Yep
is often lost on investors, because often they will say, "Well, why cannot this business just easily flow through to ODMs.
Yep
And why is Dell getting more than their fair share?
Yeah.
I think that's a very valid point when you're talking about it. Do you think that that moat that you've just talked about, time to deployment, helps with the underlying AI profitability as you think about, the AI compute profitability as you think further down?
Yeah, look, I think we expect that to stay fairly stable from a rate perspective. We're in that mid-single digit range.
Right.
Obviously, it's a competitive market, so all those players you just referenced, they turn up and bid just like we do in all of these big deployments. We feel that's the right sweet spot. Because obviously at a multi-billion dollar deal, mid-single digits, it's still a lot of margin dollars for them.
Right.
That's the value point we found, for sure.
Okay. Then just shifting to the traditional servers, obviously very strong growth here.
Yeah.
The growth's frankly greater, on a year-on-year basis, relative to the GPU side of the things. So how big could this traditional server opportunity be, especially when you think about, many years that you've seen this business-
Yep
it does go through a boom and a bust cycle.
Yeah, and that is where I kind of referenced it at the start, but I think we are seeing a new TAM emerge and what it looks like. I think it is more durable and more broad-based than just a cycle of the traditional data center that we have always seen. That is the foundation layer for sure, but inferencing and then security are the next two where I think, like you said, we feel enterprises are only at the start of their enterprise journey from an AI perspective. I think that gives us strong confidence that it is a new TAM, that is a multi-year TAM that kind of develops out.
Right. Could you double-click a little bit on it? Because clearly this year, given supply constraints, given the pricing of memory that you have had to pass through as well, it is more pricing versus units, and then as you kind of think further out, what is the algorithm for growth there between units and pricing?
Yeah. I would introduce a piece in the middle also, which is the density and core growth within the unit. As an example, there are over, a significant number of the install base are 13 G, 14 G.
Yeah.
Ultimately, I can replace five or six of those with one of these, the new ones. As we go to 18 G, that density even gets even higher.
The unit count is important, but it is only one small piece of the equation.
I think because of the amount of memory you need, the amount of core growth that is in there, I think the ASP forever will stay much higher from a traditional server perspective, sans the traditional inflation or deflation cycle that could be there also.
Okay. All right. Let us talk a little bit about storage, right?
Yeah.
You have already referenced it. The growth there was phenomenal. You have been outperforming the market, and again, pricing here has obviously been a driver because all the ODMs have raised prices. As you see these deployments mature and enterprise adoption matures a little bit and mix shifts also towards Dell's own IP and away from third-party IP-
Yeah
How should we think about the longevity here of storage revenue growth, and more importantly then on margins as well? You are still benefiting from the shift towards your own Dell IP.
Yeah, for sure. Look, as we embarked on our Dell IP storage portfolio, go back, let's say, 3 years ago, that started with our mid-range PowerStore product. Q2 was the 10th consecutive quarter of double-digit growth. That we've seen there. As we've built out the portfolio, more in mind for AI workloads, PowerScale now five quarters in a row of growth, ObjectScale four quarters in a row of growth. Unstructured is obviously growing also double digit.
All of these elements are allowing us at higher ASPs, because they can command a higher price with software and service in there too. So we get the ASP increase, but also the margin thresholds are significantly different, obviously, given it's Dell IP. You build those elements together, link it to that CPU growth we talked about earlier, and we think from a product perspective, and then the underlying demand that's coming, I think we're positioned really strongly as we head into next year for sure.
Okay. You did introduce Project Lightning.
Yep
as well. I guess it's still early in the market, so it's probably not reflected
Yeah, it's still a very small piece. It's out there, it's being tested by a lot of our biggest customers, but more to come there. It's not a material element in terms of the numbers today.
Right. This is more towards the neoclouds versus your traditional enterprise customers.
Yeah, then you get the broader base of the products I just referenced will give us complete coverage across the customer segment stack.
Okay. On the flip side, AI tends to be fairly lumpy.
I think you guys have talked about it before, where there is customer readiness really is mainly driving when you recognize revenue.
Yep.
But when you think about all the various constraints that you already talked about from a working capital perspective, how do you manage that across? Is it just the fact that you just have so many customers now that it's smoother? How are you thinking about that AI data center readiness?
We have built out good muscle. When we talk about our backlog at $95 billion, or when we take orders in $61 billion in Q2, that's gone through a pretty rigorous vetting process on two avenues. One, we've completed all the durability test around credit assessments, financing, making sure the cash is good, et cetera.
On the design piece. We will have worked particularly on the bigger neocloud designs, like I said earlier, 20 to 50 iterations of that. It is a solid customer, credit is aligned, financing is aligned, and we have, I will call it an 80/20, 90/10 alignment of data center readiness in terms of timing. We have approximate ship dates we are going to do that. Once we take the order and it comes in, obviously you might have one or two that might slip out. We can easily, that is the value of our supply chain. We will move a few things around. The majority, when we talk about our backlog, it is solid, it is locked in, it is non-cancelable. It will endure as part of that. All those steps have gone through the process.
Okay. All right. A little bit on commercial PCs here, then I can open it up. You are gaining share. I think you have identified that as one of your areas. You obviously have a leading position in commercial PCs, but there were other pockets that you were strategically interested in gaining share as well there.
Yeah.
There are supply constraints at the same time. Where are you seeing this greatest traction that you have? Again, the margins on the PC segment were pretty strong.
Yeah, look, ultimately the market is compressed for the rest of this year, like I said, minus double digit. On the flip side, there are still 400 millio+ PCs over four years old.
Right.
Ultimately, if you go back to the conversation about the cheapest token being closest to the data, none of those install-based PCs will have the battery life or the power to do AI workloads on them. There is a pent-up demand that we believe will come once it stabilizes and once IT budgets get a little bit more settled and expanded. The reality is most enterprises this year, for their IT budgets, are sweating those assets out a little bit more. What dollars they have, they are trying to build out their infrastructure side as they do that.
As we go forward, I think you will see it a little bit more robust. Our main focus will be on those higher ASP commercial boxes as part of the AI storyboard that is there. Obviously, like you said, we have the portfolio across the platform. Very mindful, you are not going to see much elasticity on the consumer side, et cetera, as we go through the next two, three quarters.
Okay, fair enough. Let me just turn it to the audience. Any quick questions, please raise your hand so we can bring the mic to you. I see one hand there.
Thanks very much for the discussion here. Yesterday, S&P Global published a report, said that they are allocating $21 billion of your debt to Dell Financial Services, up from $10 billion a year ago. Can you just talk a little bit about customer financing, what the opportunity is, just given the pipeline and the backlog in the AI and data center customer base? Would you be willing to broaden your customer financing beyond your traditional into residual value support, backstops, and the other types of things that we have seen in the market very recently?
Yeah, sure. A few things in there. One, just to correct the numbers, it is 14% to 20%, not 10% to 21%. So hopefully it will correct itself in the storyboards. It is roughly an indication of the growth that we have seen, particularly on AI. Look, what we will do, we are not a traditional big bank, so in most cases, the rates I can offer would not be competitive versus the rates they can get in the open market, whether it is the banking or private sector.
We will continue to offer and be selective on certain accounts. It will be short-term in nature, though, so you will not see us doing long-term neocloud financing. I have no desire to use Dell's balance sheet to do that. So you are going to keep a fairly prudent approach in relation to that.
And we are very active with those big banks and those conversations around those long-term financing options. You have seen it all in the press the last few weeks. We are helping position and part of those conversations, so we can help those folks kind of be part of that dialogue.
Okay. All right. Anybody else here in the audience? Okay, let us talk a little bit about OpEx.
Sure.
You already mentioned that, how you have divorced that from the revenue growth rate here. Could that operating leverage, when you think about it, maybe next year and into the following year, could that be even a bigger driver of EPS versus just the top line?
Yeah, I think it's probably one of our most misunderstood elements of the P&L. I'm pleased with the tools in the toolbox I have from an EPS perspective. It's anchored in revenue, obviously.
Sure.
Storage margin rate enhancement gives us margin discussion.
Right.
Then you look at OpEx scale. This year, our P&L will find about 4.5 points of scale. It's going to continue to do that, so it's absolutely a viable lever from an EPS perspective. And then our fourth, obviously, from a cash, as we develop more cash, given our negative cash conversion cycle, the more you grow, the more you grow profitably, the more cash we'll create, and we're going to hand that back to our shareholders. We're pretty pleased from Q1 to Q2. While we saw our amazing share price value increase, we also, in unison, increased our share buyback program from $1.6 billion to $3.9 billion in 90 days. That's an indication, hopefully, the commitment that we can see as the boats rise, we'll continue to reward the shareholder base.
Okay. Just given there's so much growth, and there's so much need for all this capital, I mean, obviously, you talked about share buybacks, you talked about dividends. Just when you think about your product portfolio, are there areas where you feel like there is opportunity to maybe double down, beef up the product offerings that you have?
I think if you asked me that question three, four years ago, I would've talked about storage in particular.
Okay.
Also the ecosystem around AI servers, as we continue to see chip generation.
We're building out more and more engineering labs to be ready for those engineering hurdles and the next wave of products, and we'll continue to build out that storage portfolio. That's probably the sweet spot of where you're going to see our R&D investment as we kind of move forward.
Okay. It's still pretty organic.
Yes, correct.
Yeah, okay. All right, and then, just as we wrap it up here, if you compare today's environment, David, relative to where we first saw you at your analyst event.
Yeah
Right, it wasn't too long ago, and where you guys laid out some targets, and clearly you're surpassing that significantly. What do you think is part of the story that's most underestimated by investors? Is it your AI opportunity? Is it the storage attach? Is it your exposure to sovereign and, just maybe help investors understand.
Yeah, I think as we wrap it, there's probably two elements that are fundamentally different. One is that scale and leverage conversation we just had.
Yeah.
The other piece is, AI GPU server has exploded, and we've seen that revenue. But that traditional server CPU inferencing TAM, I think that is new 12 months on versus where we were previously. And I think that's where you're seeing the duality of that revenue growth really pop up. And we're positioned, we sell across the portfolio, so I think as you see that circular conversation of tokens to data to compute to storage drives more tokens to data to compute to storage.
As that gets bigger and bigger, we're well-positioned given the only one who provides end-to-end those products. We're excited about the next few years ahead for sure.
Awesome. Well, I'd like to thank Dell, David, thank you very much, and to Paul as well for coming to our tech conference, and looking forward to more stellar results. Thank you.
Brilliant. Thank you, team. Thank you.