Good morning, everyone. I'm Samik Chatterjee. I cover hardware and networking companies at JP Morgan. For the next fireside chat, I have the pleasure of hosting Extreme Networks, and with us is Ed Meyercord, President and CEO, and Kevin Rhodes, CFO of Extreme Networks. Ed, Kevin, thank you for taking the time to attend the conference. Stan Kovler, Investor Relations, thank you for taking the time as well. Ed, I'm really starting off asking all of our companies to share what they think about the end markets in 12 months from now. So we all realie where the end markets are today, there are cyclical headwinds that we're seeing, but maybe take a long view 12 months out and tell us, how do you think about where we will be 12 months from now?
Sure. And thank you for having us, Samik. We appreciate it. We're. If you look at Extreme, we're in the enterprise space, so we play across many industry verticals. We are currently feeling the effects of somewhat of a slowdown in macro public sector spend in some of our markets. So I would say from 12 months from today, we're hoping that we see a rebound in EMEA, for example, where we've seen the cycle of public spending slow down quite a bit, and we feel like we're sort of at the bottom of that cycle. Then in other verticals such as healthcare, manufacturing, retail, other verticals, you know, we're seeing strength.
Overall, the macro issue affecting our environment has been supply chain-oriented and a lot of supply in the channel, and we're seeing that clear up quite a bit. So hopefully, and the way we see it, that we're at the bottom here, and we're coming out, and we'll see more strength in the industry verticals, you know, where we play, in the public sector in Europe specifically.
Okay. So maybe flesh that out a bit more in terms of the inventory digestion, which you've highlighted for a few quarters. One, sort of, where do things stand right now? And let's say we get past the inventory digestion, how does the rebound look? Is it an immediate sort of snapback, because of the absence of that inventory digestion headwind, or how are you thinking about the recovery beyond that?
Yeah. You know, for us, inventory peaked in September of last year. This is really where supply, not only with our distributors, but also with our channel partners and also our end user customers, for example, were stocking Extreme equipment, and that is a highly unusual phenomenon. We realized that, you know, in the middle of September of last year, and this is all the while where our distributors are still placing orders. So we had to work our way through that. We made the decision to clean out the channel as much as we could in this March quarter, which is clearly the bottom for us. And then, what we're calling is a step out, a gradual step out, where we're markedly up about 20%, seasonality from the March quarter to June.
Normally you'd see a downtick from a seasonal perspective going into September. We think we're gonna grow through that, you know, as we come out of the cycle. And then December is always a strong quarter for us, end-of-year government spend, and so we're expecting to step out for the next three quarters sequential growth. So at the end of the day, for us, we look at this, you know, what's the path? We want to get back to this $300 million a quarter revenue. There's the growth of subscription, which is 30%, you know, high 30% growth rates for us, which is helping us out of this, and then with the channel digestion behind us, it's not, you know, such a huge lift to get back to that level.
Okay. Okay. Relative to the industry, there is some M&A that's sort of laying out. How are you thinking about the opportunity that's offered to Extreme from the consolidation of two big competitors? How do you think about, like, the addressable market you can go after, or what are the tier of customers that you can sort of target to directly gain share?
Right. Well, yeah, there's a lot of disruption with the largest players in our industry today, which is creating opportunities for Extreme. You know, we provide a very attractive alternative, and you can't just think about the end users, you also have to think about the channel, okay? And there's two very different dynamics there. In the case of Cisco, this is the place where all the competitors normally feed to take share. Cisco tends to be the highest price player in the market. I think everyone is well aware of their acquisition strategy. They make a lot of acquisitions. There's a huge challenge trying to integrate all the technologies they put in their portfolio. It winds up being very complicated.
So we come in, and we represent simplicity, and we also represent value, and we also represent, you know, high quality. So as we come in with our, you know, one network, one Extreme, one cloud strategy, we become a very attractive alternative, and this is why we won Korean Air, you know, big enterprise customer, 30-year Cisco customer. They needed a change. They wanted modern networking tools, technology, and a fresh start. Extreme became that choice. We won Kroger, the world's largest grocer. We're in the process of deploying 2,800 locations managed from a single cloud platform. Again, this is an alternative to the largest player in the industry, where we show very well there. Cisco acquired Splunk. They have a lot of work to do on that asset.
Splunk is not real time, it's old technology, and so there's a massive investment that's required by them to effectively sort of catch up. They took down their earnings. From our perspective as Cisco being the price setter in our industry, this is good for us because it means that they have pressure not to drop price, which is what they've done historically. So we feel like the pricing environment in the industry is gonna be fairly stable, thanks to Cisco, and the fact that we're still priced, below them. The big news obviously is HPE buying Juniper. The number two, number three players where we play. Here again, we think this is a big opportunity for Extreme as a great alternative to either one of those players.
Keep in mind, we go head-to-head with these players every single day in the marketplace, and there's a lot of disruption. If you go back to our history and you look at how Extreme evolved over time, we made a lot of acquisitions. We acquired a lot of companies with complementary technology. Very hard, very hard. Teams come together, you have to decide which way are we going, what path are we gonna take in terms of the portfolio, and how are we gonna make it work together, and how are we gonna communicate this to the channel, and how are we gonna communicate this to our end user customers? It's complicated. It takes a long time. So yeah, as, as we look at it. First of all, the deal has to close.
I would say between the ask and where they're trading, it's an unusually wide margin, which means some people don't think the deal is gonna even happen. But, you know, when the deal happens, they have to put together a roadmap that's compelling, and they also have to sell their channel, and their partners. So we had our user conference a couple of weeks ago, and we had a very large university with 40,000 students contemplating Extreme as an alternative to both HPE and Juniper. The teams from both companies came in and pitched and said their technology was a surviving technology. Okay, well, we know that's not the case, and it can't be the case. So there's a lot of mistrust and a lot of concern. They're going Extreme. The same thing in the channel.
If you're a Juniper partner, you probably don't wanna be part of the commodity base of HPE's partner and their partner programs, etc. Okay, that creates disruption, that creates an opportunity. So we're looking at all this with very specific playbooks around how we approach the end user customer, as well as how we approach the channel, where, you know, we become, in our view, a much better alternative. There's certainty around the future technology and the product roadmap with Extreme, and there's simplicity in our commercial model that we think is gonna allow us to take share from both players.
Okay. Like the example you gave of a university moving over from the competitors to using Extreme, any more sort of details you can share in terms of which are the tier or the verticals that HPE and Juniper do well in, when you run into them in the markets that you play in? Where would you sort of be at on a vertical basis, where would you really target to take sort of incremental share?
Yeah, I think if you look at, you know, where we've traditionally played, it's in the SLED market, so state, local government, education. HPE has been a strong player there. You know, this is a tough DOJ, and I think that's probably where their focus is on SLED, and they're probably concerned about, "Hey, what happens when these two get together?" Juniper has made a huge push into SLED, and so right now they're looking at, I know they're looking at market share data. I wouldn't be surprised if that's an area that's, you know, creating some concern, as far as, you know, where they have stronger market share.
Okay. The cloud-enabled platforms, so going back to the product roadmap, the cloud-enabled platforms in relation to Wi-Fi, campus, that Extreme has had driven a lot of the share gains for Extreme in the past. What are you hearing from customers in relation to drivers of the share gain, and now sort of the differentiation that your product portfolio has, given that it's been a while since you sort of talked about the cloud story, and that resonated with customers? But is that still holding as a differentiation, or do you see any other reason that customers are coming up and saying, "This is the reason we want to use Extreme versus the others?
I mean, Cloud-Managed Networking is clearly one of the fastest growing segments in the industry, and that's not going, that's gonna continue. I just talked about Kroger, the fact in Cincinnati, the team in, you know, in IT, can look at 2,800 stores. They can look at every single IoT device, every network element, from a performance perspective and a connectivity perspective. They can look at every client that's attached to every network element. They can look at application performance, all of these tools that are available from, you know, a cloud instance. This is powerful, and the world's not going back. You know, I mentioned Korean Airlines, same thing. Everyone is interested in cloud. One of the places where Extreme is differentiated is with a unique networking fabric that we have.
It's a Layer 2 fabric. It can't be hacked. It's super, super simple for the campus. If you ever hear about network fabrics, a lot of people say, "Oh, I remember those." Like, it's old networking technology. It's for the data center, but it's not designed for the campus. So we have a Layer 2 campus purpose-built fabric that literally no one else has. So what it allows you to do is, from a security standpoint. By the way, this is one of the reasons why we won Washington University, another, you know, prominent university, again, taking it away from the larger players, is the fact that they can create within a physical networking infrastructure, you can create a network within a network very easily. What does it mean from a security perspective? It means you minimize a blast radius.
University of Pennsylvania and, you know, Philadelphia, their 1.5 million sq ft medical complex that they've just built, state-of-the-art, they love our fabric because they can literally create. They have 47 operating rooms in that hospital. Each operating room has its own effective network. Each room in the hospital has its own effective network. So when they get hacked, because the network interconnection device on an MRI technology or some, like, new, the biomed team puts in, like, a new equipment, that, you know, has a hole where someone can get in, the blast radius is confined to a single room or a single system, depending on how you configure it. Security is, like, top of mind for everyone. So this is a technology that we have.
There are also things that you can do with our fabric in terms of ease of provisioning. The theme at Extreme is gonna be simplicity, ease of use, driving operational efficiencies. So this is another key area for us today that is very popular, and I could go on and on about all these customer use cases where we're winning in the marketplace, but it's a significant differentiator for Extreme today.
Got it. Got it. Let's talk about Wi-Fi 6E and Wi-Fi 7, whether you still expect Wi-Fi to be a material upgrade cycle driver. I mean, we've used to see in the past, Wi-Fi was a reason for enterprises to upgrade. As you look at Wi-Fi 7 and beyond, is there enough of a incentive for enterprises to upgrade for the new Wi-Fi technology, or is it more, "Let the replacement cycle run out, and when the asset is up for renewal, then sort of go?
Well, I would say absolutely. Going from Wi-Fi 6 to 6E was a big change because you open up 6 GHz spectrum. So you have, you know, 2.4 and 5, kind of built into Wi-Fi 6. When you add 6E, you open up the 6 GHz spectrum which massively, massively increases capacity.
So that move from 6 to 6E then takes a Wi-Fi environment and then allows you to be much more robust in terms of what you can cover. Wi-Fi 7 is all about performance, and what you're gonna see is mission-critical applications running on Wi-Fi, where historically you might not have seen that. People would be reticent. It's like a best efforts basis over a Wi-Fi network. People are concerned about maybe in a healthcare environment, or maybe people are concerned in a manufacturing environment. When you think about robotics, you think about important systems that are running, and that really was a compelling case.
For private 5G. The quality, that is gonna come with Wi-Fi 7, makes it, mission-critical grade. I think it's gonna, it's gonna raise the bar even further for private 5G. It's gonna be harder to make that case, given the favorable economics that you've got with Wi-Fi. You know, we dominate in the stadium space. You know, I think about Gillette Stadium here, the Kraft family. 20 of the 30 NFL stadiums run on Extreme. We got Manchester United. You know, the, our partners in these deals are the service providers, like Verizon is our partner because of the massive savings they have in terms of the economics. People seamlessly flow onto the Wi-Fi network, and it saves them a ton of money, not to mention all the visibility that they get in the stadium.
So again, when on an Ethernet network, you have complete visibility into all the connected devices, all the data, application performance. So all the teams use our stadium analytics, and you're not getting that from the private 5G network. So there's a lot of advantages. I think Wi-Fi 7, again, is gonna be about the quality of connectivity, and the fact that enterprise customers can now make that bet on reliability and mission-critical services.
Got it. Let's transition to more sort of AI-relevant topics. But before we get to products and revenue drivers, just more curious, since we're asking all of our companies to comment on: how do you see adopting AI internally, and do you see any tangible improvements that you can make in terms of either processes or any other areas where it is more of an impact on the operations of the company?
Sure. I mean, there are obvious cases for us, you know, especially when considering that, you know, we're running a services organization in terms of GTAC. So we have, you know, a huge knowledge base of cases where there's an issue in the network, and our teams have solved it. We create a knowledge base. Well, access to the knowledge base using generative AI becomes a much more powerful tool. Self-service for customers, in addition to our own teams, solving problems faster when something comes across the bow. Extreme focuses on quality of customer service. We always have the highest rating from Gartner. This only enhances, yeah, our capability there. Look, there are other areas in terms of responding to RFPs, where we can adopt. Like, we have the ability to streamline and automate some of the functionality.
Marketing, we're selling in 80 countries and many different languages. This historically has been pretty expensive as we convert things in other languages. Here, again, in a pretty simple opportunity, our HR teams, how we deal with HR benefits questions. Yeah, Kevin, I don't know if you want to add anything.
No, I
From an IT perspective, but.
I mean, we're looking at it operationally across the board internally, and like you said, you know, trying to drive more efficiency organizationally. We're also looking at it from a product perspective well, and I think that's some of the most exciting opportunities we have ahead of us.
Okay. So let's transition to discussing products. How do you see AI on the product side impacting your technology roadmap? How do you think about sort of what the timing of that demand looks.
Yeah
For you?
So look, the first generation of AI was important from a performance and what we would call AIOps perspective of the network, where, you know, literally, you know, we have millions of devices that are connected to the network, to our cloud. We have visibility to those devices and how they perform, and then different characteristics when something happens in the network. So from a network performance perspective, FedEx, every time you get a FedEx package, it's come across an Extreme Networks network, 'cause their distribution runs on Extreme. Well, in their massive distribution center, if we notice that, you know, there's a channel that's sort of, kind of fluttering, turning off, on and off for an access point, we can identify that with our AI, right?
With that, we can notify FedEx, and we can say: "Look, we're sending you a new access point. Change it." They don't need a network technician. They just have to change out the access point, send in the old one. The network never goes down. We save them a ton of money. Performance is higher. You know, that's kinda Gen One, you know, machine learning algorithms, you know, for our AI, which still is intact today. The same thing with network behavior. Samik, we notice, like, all of a sudden, you have very bizarre traffic patterns in terms of what's coming out of your machines. We notify you of these things because there's anomalous behavior in a network, so that's sort of your traditional AI, if you will. So those capabilities still exist, but they're enhanced by the next generation AI.
So we're looking at it really three categories. There's knowledge. We have about 1 million pages of product and support and tool information, if you will. All of that's been loaded into, you know, our private database, if you will, that gets married with a public database, and now it becomes very easy to find out: How do I configure a network? How do I configure this access point? How do I respond when, you know, I'm getting these kinds of indicators, you know, from the network? How do I configure a fabric? So there's just all kinds of information that literally, from a knowledge perspective, you just ask.
Then there's enhancements around performance and reporting of performance, where, going back to the AIOps type examples I'm using, you use this to drive performance. So there's information, real-time information from the network, that you can glean, to track what's happening in real time. I go back to, you know, you're in a hospital environment, and someone's complaining because, you know, biomed has brought a new fancy piece of healthcare equipment. It's moving around the environment, and there's a problem with it. You know, mean time to resolution is incredibly important if you're in the networking industry, because everyone blames the network, or mean time to innocence, because it's always the network's fault, right? In this case, you can just ask for a report. You know, what's happened to this client, this device?
What is its history across the network over the past two hours? You have a report. This would take, you know, teams, healthcare teams and tech, weeks to walk around with the device, try to figure out what's going on. Well, now, all of a sudden, you have an instantaneous fix to your, to your problem. So, you know, here's another example where it applies to your network in real time, for real-time issues that you're trying to solve for. This is. I think it'd be very powerful for people running networks, and it's gonna save a lot of time, and a lot of money. The last element is we consider scenarios, what-if scenarios, if you will, around. I'm at Gillette Stadium. I run football games. I know the traffic behavior of what's going on in the stadium.
Now, Taylor Swift is coming to the stadium. All right, what happens if Taylor Swift comes to the stadium? I can run, okay, a scenario.
That says, This is what we predict will happen to the network, and this is where you may want to enhance the network, or this is where you're gonna fail. This is where you're gonna have a problem. This is much more complicated. It's much more complex, but you can do retail can do this on Black Friday. You can do this. There's a lot of different scenarios that you can run, but here, this is, you know, this is more advanced. The point I will make is that I don't even think I think we're just starting to scratch the surface of the use cases here. So, what we know today is gonna change in the next six months, and it has changed in the last six months. So I think there's a. You know, this is gonna continue to evolve.
In our case, you know, we're looking at developing this platform. It's already developed, so, you know, we're already in beta with many of our customers. We're coming out in the fall with what we believe will be the first, you know, secure networking platform with embedded and built-in AI. We're partnered with Microsoft. We just had our user conference. You know, the head of their data and AI environment was up on stage with our CTO and Chief Product Officer, as well as the network interconnection lead at Intel. We're excited about where we are there. We have very practical use cases and what we believe are opportunities to be the first to have a platform where there's one network element of hardware.
Everything is attached to a subscription, which is also attached to service and support on a single license. You've got built-in AI across the board, and then we have a metering around AI queries, you know, from knowledge- information, performance, and what-if scenarios.
Yep. That's a lot of AIOps. When you think about, does it directly impact demand for data center switches in terms of your portfolio? How do you think about the implications for the amount of investments that you need to do in terms of the data center switch portfolio, and how much of a demand do you foresee there from enterprise customers?
It's a good question. You know, I'm not sure I have a very good answer for you there that's gonna be meaningful, in terms of if I look at percentages and if I look at kind of how it will drive. You know, most of what we're doing is happening, most of what we're doing is happening on the edge. It's more happening on the edge of the network. So if we're looking at kind of, you know, performance of IoT devices, in a retail environment, I don't know if I can make that bridge in terms of how someone's laughing at me. I don't know how to make the bridge to, the data center.
So another question that we get from investors, and this might be, again, more relevant when enterprises start to invest, but enterprises typically work with a standard budget established at the start of the year. Obviously, with all these sort of features being added because of AI, there's still a sort of allocation to the budget that they need to adjust. How do you think about where that budget is going to get allocated from? Does that impact your campus business in terms of whether the customer is willing to see campus as a part of their AI strategy or not part of their AI strategy?
Yeah, I'll take a cut of that. We're talking about pricing and how subscription, you know, plays into that. From a dollars perspective, you know, if you have $100 that you're spending right now, and you've got a mix between, you know, product and software and support, one thing that we are doing right now is we're moving towards a principal attach, 100% attach, across all of our different hardware.
So come this October, when you buy our hardware, we're gonna see roughly about a 65%-70% attach rate today, move up to a 100%, you know, in that October timeframe. That is, by the way, something that the industry somewhat has already done already, so that gives us an uplift there without necessarily, we think, you know, a reduction in, on the, on the product side. We do believe that we can still get. Because there's a lot of value in our subscription and our support, we believe people will pay for that, in addition to normally paying for hardware.
We are seeing, and we have seen, you know, improvements in our margins for our products over the last, you know, call it six to 12 months, as the price of freight comes down, etc. We've seen, you know, stronger margins there without having to reduce the pricing on that side. So we've seen pricing on the hardware side, you know, to be, you know, fairly stable on our end. Where we've seen others reduce price, the reality is we're at 10%-15% below them, so if they do reduce price a little bit, the reality is we can stay where we are and still be very competitive.
Okay. I wanted to go back to your reference of the $300 million per quarter revenue run rate that you expect to be back at.
One, how do you think about the timing of the order run rate required to support that revenue? And what can that look like in terms of composition or mix of the business to that $1.2 billion annualized run rate?
We're seeing a nice... So, to get to $300 million, right? There's a mix there between the recurring revenue, which is the subscription and support revenue. That's been growing very nicely. For instance, most recent quarter, we were up 14% year-over-year. So we see that growing double digit. We continue to believe that that will grow double digit into this next year. So as that continues to grow, obviously, you're reliant less on your product sales to get to that $300 million a year from now. But I think that we are comfortable saying in this next 12 months, we believe that we have a very strong opportunity to get back to $300 million in revenue.
Okay. And the margin implications of that, what does that mean when you get to that level in terms of margin?
Yeah. In the most recent guide for Q4, even at the midpoint's $255 in revenue, we called 61.6%-63.6% in gross margin on that revenue. Naturally, as we continue to grow, you know, our recurring revenue, that's at a higher, you know, mix of, of higher subscription, you know, margins than, than the product side. So as we continue to grow, we see in our long-term range of 64%-66%, you know, we see our ability to get there, you know, in the next, I'd call it, you know, couple years, two to three years in that, in that range, for sure.
Okay. Let me just do a quick check for any questions. Just wait for the mic.
Yeah. I've got a couple questions on your M&A. Kind of what are you thinking in that regard? You've got obviously. You mentioned cloud networking. You've got players like Nile in that space, and Arrcus. And then also, what are you thinking about with regard to, like, things like security as a service type models? Thanks.
Yeah, that's a great question because, especially when you relate to security, we talk about the convergence of cloud networking and security. It's happening pretty quickly. So I think you're gonna continue to see partnerships and, you know, potential alliances happen in that space. It just makes sense. In our case, from a security perspective, we have a very mature product we call NAC, which is network access control. It's an on-prem technology that we've sold for years and years, and been very popular. Customers use it for security. We've cloudified that, and basically what this is providing is network-level security access. What makes it interesting is it becomes a single policy engine, if you will, for, you know, identity for individuals and for devices connecting to the network.
We're combining this with ZTNA, and it's what Gartner calls universal ZTNA, which is a combination of individual and user access, as well as device access into the network with a common policy framework. So, we're very much. And I talked about our fabric. We're very much in the security game at Extreme. There's just a lot of different layers of security and how it comes together. So I think it's inevitable that you're gonna see more and more, you know, combinations, alliances, partnerships, etc, as people try to fill out the SSE or SASE solution set that Gartner defined. Yeah.
Hi. So I wanted to understand the long-term growth and, say, kind of double digits with the Street think you guys can do. Is it more of a taking share from Cisco and Juniper in the existing market, or do you need to really think about it in terms of more investments into new products and new markets to either drive ARPU or opportunities that are in regions that you are not in? So is it basically a share gain story, or do you need to increase investments to grow in those other levers? Thank you.
A great question. I think it's a combination of both. I don't think it's a clear sort of one or the other. Along the lines of what I was just talking about with security, you know, we're already in the security market with, you know, with our fabric. We're in security with, you know, with our NAC. We cloudified that. Universal ZTNA will be new. I would say it's our most popular beta. Coming at it from a network perspective, we're not over the top, so what's unique is it's built into the network. So there's real differentiation there for us, especially having one common policy, platform, if you will.
The other advantage that we would have going into the market is price, because a lot of the over-the-top solutions that are in the market today are very expensive, and we can be very disruptive on price from, you know, how we're coming after it. There are share gain opportunities. I mean, we have a lot of opportunities. It's harder to win a new logo in our industry than it is to support an existing customer, especially if they're on our fabric, and they're in our cloud. But we have a lot of opportunities to unlock, and we have new commercial models to unlock some of these larger customers that reside with the Ciscos and HPE and Junipers of the world.
As I said, we have very specific customer strategies, very specific channel strategies, new commercial models to go get this. In our mind, this is all on the table, it's all in the funnel, and we're running for it. Security is something that's new. We don't have that built into our plan in terms of. You won't see that in our forecast yet.
Right.
But we will be building that into the plan, and that's really sort of the big add-on. From a platform perspective, we will be looking at adding, you know, new services. I would say in terms of the outlook and our guide, it's all based on, you know, existing business driving the platform, share gains, and then continuing this subscription growth in the high 30% range, that we've.
We just introduced Extreme Labs, right? And so that's the incubator for all these new services that we're looking at right now, and security is clearly at the forefront of that team's, you know, focus, not only on AI, but also on the security side. So I'd say we will continue to innovate and invest in innovation over the next two to five years.
Let me sneak in a last one. You've said you're open to M&A, but not looking for anything as a near-term priority. But if you were to. I mean, sounds like if I ask you which are the target areas, you would say security is one. But just help us, like, beyond security or even including security, which areas of security would you be most interested in?
Yeah, I mean, there was a question before about networking, and there's, like, some startups. Look, at Extreme, like, we're gonna look in- yeah, we're gonna look at value. You know, a company like Nile, we look at that as kind of a commercial model.
Yeah.
I don't
Go sell in HPE.
See a lot of value add there. We have network as a service. I think it makes sense. There's a lot of customers that wanna buy, you know, in that operating model. At Extreme, we don't have the luxury to go pay a really high price that Cisco might pay. So I'm not sure that you'll see Extreme get involved with, you know, other networking companies, unless there's a, you know, a scale opportunity that presents itself. So I think that we see it on the M&A. It's more likely that we're gonna look at filling in this security portfolio, and there's a lot of assets that are out there, a lot of private assets that are out there, and there are piece parts that we can stitch together.
It's easier 'cause it's being stitched together in the cloud. So from that standpoint, I think that's where we would, you know, you would look to see us play in a highly targeted fashion.
But we'll be very pragmatic and prudent in the process of looking at those.
Fair. Great. Thank you for attending the conference. I'll wrap it up there. Thank you to the audience as well.
Thanks, Samik.
Thank you.
Yeah, thanks, everybody.
Thanks, everybody.