Please stand by. Good day, and welcome to the Mitek Systems second quarter fiscal 2020 financial results conference call. Today's conference is being recorded. At this time, I would like to turn the conference over to Mr. Todd Kehrli, MKR Group. Please go ahead, sir.
Thank you, operator. Good afternoon, and welcome to Mitek's second quarter fiscal 2020 earnings conference call. With me on today's call are Mitek's CEO, Max Carnecchia, and CFO, Jeff Davison. Before I turn the call over to Max and Jeff, I'd like to cover a few quick items. This afternoon, Mitek issued a press release announcing its second quarter fiscal 2020 financial results. That release is available on the company's website at miteksystems.com. This call is being broadcast live over the internet for all interested parties, and the webcast will be archived on the investor relations page of the company's website. I want to remind everyone that on today's call, management will discuss certain factors that are likely to influence the business going forward. Any factors discussed today that are not historical facts, particularly comments regarding our long-term prospects and market opportunities, should be considered forward-looking statements.
These forward-looking statements may include comments about the company's plans and expectations of future performance. Forward-looking statements are subject to a number of risks and uncertainties, which could cause actual results to differ materially. We encourage all of our listeners to review our SEC filings, including our most recent 10-K and 10-Q for a complete description of these risks. Our statements on the call today are made as of April 30th, 2020, and the company undertakes no obligation to revise or update publicly any of the forward-looking statements contained herein, whether as a result of new information, future events, changes in expectations, or otherwise. Additionally, throughout this call, we'll be discussing certain non-GAAP financial measures. Today's earnings release and the related current report on Form 8-K describe the differences between our non-GAAP and GAAP reporting and present the reconciliation between the two for the periods reported in the release.
With that said, I'll now turn the call over to Mitek's CEO, Max.
Thanks, Todd. Good afternoon, everyone. Thanks for joining us today. Jumping right in, as the COVID-19 pandemic continues to unfold, our foremost commitment is to ensure the health and wellbeing of our employees, their families, and our worldwide community. As such, we have taken all necessary measures to maintain the continuity of our operations and to safely operate at full strength while complying with government's mandated stay-at-home directives. As a modern digital business, we were able to pivot to work from home within one day, and all of our team members continue to be highly effective in this environment, delivering on all committed service levels. As such, Mitek is steadfast in our commitment to empower trust and convenience in a digital world.
Our identity experts are working 24 by 7 around the globe to ensure that more businesses are enabled to transact digitally and secure their platforms through easy, fast, and secure identity verification. We've increased human capacity to ensure more agents are available in more locations to support the increasing volumes for high-assurance identity verification. We are also partnering with financial institutions as well as the Federal Reserve here in the U.S. to expand usage of Mobile Deposit amongst consumers. To sum it up, our cloud-first technology provides a secure environment for both existing and new customers, and now more than ever, our enterprise-class expertise, products, and services are being leveraged. This was reflected in our second quarter results, where we delivered record revenue of $23.2 million, representing growth of 16% year-over-year.
We also generated non-GAAP net income of $5.4 million or $0.13 per diluted share, up 98% year-over-year, and cash flow from operations was $3.2 million. During the quarter, we continued to see ongoing positive momentum in the identity verification market. We expanded with our existing customers, particularly in the gig economy segment, and our identity verification solution continues to gain traction with our transactional SaaS revenue growing 38% year-over-year. We also continue to experience growth from our highly profitable deposits product line, with adoption and utilization continuing to increase. While the current environment is certainly challenging and uncertain, the way we live and work is forever changed. The need for fast, secure, remote services is magnified, and regardless of where our customers were in their digital transformation journey, the time is now to accelerate.
Providing secure digital identity verification isn't just a question of convenience during COVID-19, it's become a necessity for organizations making this urgent shift to digital. Identity verification is the essential digital use case, enabling businesses to onboard more good customers faster in this vital environment. As such, several of our customers escalated their transaction volumes during the quarter. Specifically, in the gig economy sector, we saw significant spikes from our home delivery customers. Almost overnight, they went from being a convenience to serving as a lifeline for millions of people following stay-at-home orders to slow the spread of COVID-19.
Now more in demand than ever, Mitek is helping these customers bring new shoppers safely on board to meet the increase in demand. One of our customers in Europe, who is a leading provider of digital identities, also experienced exponential growth in traffic volumes due to their service being the gateway to access government services such as COVID-19 benefits. Increased demand for online banking, as well as insurance and lending, also contributed to transactional growth in the quarter. At the same time, we saw a slowdown in travel and hospitality sectors, with slower than normal transaction volumes as a result of the pandemic. As we look forward from a revenue perspective, we are currently receiving a benefit in our identity business from some of our existing customers who are experiencing significantly more traffic as a result of the current environment.
At this point, it is impossible to predict what impact COVID-19 will have on our current customers and our pipeline of potential new customers. These are serious times, and there are large swaths of the economy that are being affected, and our customers are not excluded. Near term, it may be a bumpy road as we weather the economy, but internally, we are continuing to focus on execution. We are not pulling back on our investments to grow our business. It is more important now than ever to companies looking to digitize their businesses. However, we are proceeding cautiously to preserve our business, our bottom line, and our resources. Turning to our deposit solutions. If there ever was a time when mobile check deposit was essential, it is now.
As the economic impact payment checks begin to circulate, consumers will use Mobile Deposit, many for the very first time. This use case may even be a catalyst for digital or mobile banking adoption. Banks are investing significant resources to enable their customers through mobile and digital channels, and as they do this, Mobile Deposit continues to increase. We remain the clear leader in this regard, with over 7,000 financial organizations using our products. We are proud of our Mobile Deposit offering and its ability to assist people in this time of need. As I noted last quarter, USAA filed two lawsuits in Texas against Wells Fargo for patent infringement related to remote deposit systems, and the juries in those cases returned verdicts in favor of USAA. The court is still considering post-trial motions in those cases that could overturn the verdicts or result in new trials.
In the event Wells Fargo is unsuccessful in overturning the verdicts or obtaining new trials, the two cases will be subject to appeal to the United States Court of Appeals for the Federal Circuit. The United States Patent and Trademark Office is currently reviewing the validity of several of the patents at issue in the Wells Fargo cases. Final resolution of those issues may be over a year away. As I noted last quarter, Mitek filed an action in California seeking declaratory relief that Mitek's products do not infringe the patents at issue in the first Wells Fargo lawsuit. In January, USAA filed a motion to dismiss or transfer our action to the Eastern District of Texas, and we opposed that motion. Recently, the California court ruled that this action should be heard in Eastern District of Texas.
As such, we intend to vigorously prosecute our case in this new venue as Mitek invented all of its core technology, and we believe our products do not infringe on any USAA patents. Today, we also filed a petition with the U.S. Patent Office challenging the validity of the only patent at issue in the first Wells Fargo lawsuit that is not already subject to challenge filed by Wells Fargo. We expect a preliminary decision on whether this challenge will be instituted in about six months. In closing, we are pleased with our results, which include record revenue and significantly improved profitability. I'm proud to lead the Mitek workforce, who have rallied without question to deliver the technology, products, and services that our customers need and value during these extraordinary times. This is a seminal moment that Mitek has been created to enable.
We have the teams, the vision, the technology, and a market in need of a solution that Mitek is uniquely positioned to deliver. Together, this amounts to a significant opportunity for our employees and shareholders. Now I'll turn the call over to Jeff to discuss the financial results in more detail. Following Jeff's remarks, we'll open the call up to questions. Jeff, please go ahead.
Thanks, Max, and thank you everyone for joining us this afternoon. Let's start with the Q2 revenue and operating results. For the second quarter of fiscal 2020, Mitek generated record Q2 revenue of $23.2 million, a 16% increase year-over-year. Software and hardware revenue was $11.5 million, an increase of 8% year-over-year. Services and other revenue, which includes transactional SaaS revenue, maintenance, and consulting services, was $11.7 million for the quarter, an increase of 25% over Q2 last year. This increase is due to growth in transactional SaaS revenue, which increased 38% year-over-year to $7.4 million. For Q2, deposits revenue increased 13% to $14.6 million, and revenue for identity verification increased 21% to $8.6 million.
We delivered strong software and hardware gross margins of 92% for the quarter. Gross margin on services and other revenue was 80% for the quarter, up from 78% in Q2 last year. Total gross margin for the quarter was 86%, up from 85% last year. Total GAAP operating expenses, including cost of revenue, were $22.1 million, compared to $21.6 million in Q2 last year. This increase is primarily due to investments in operations to grow our business and increase litigation costs. These increases were partially offset by lower expenses in our Paris operations as a result of the restructuring announced in July 2019, and a decline in acquisition-related costs and expenses. Sales and marketing expenses for the quarter were $7.45 million.
R&D expenses were $4.8 million compared to $5.3 million last year. Our G&A expenses were $5.2 million compared to $4.8 million a year ago. GAAP net income for the quarter was $900,000 or $0.02 per diluted share. Our diluted share count was 42 million shares compared to 38.9 million shares a year ago. As a reminder, our earnings release includes a reconciliation between GAAP and non-GAAP net income. We believe non-GAAP net income provides a useful measure of the company's operating results by excluding acquisition-related costs and expenses, stock comp expense, litigation expenses, and the related tax impacts of these items. Non-GAAP net income for Q2 increased to $5.4 million or $0.13 per diluted share compared to $2.7 million or $0.07 a year ago.
Our non-GAAP adjustments included $2.3 million of stock comp expense, $1.6 million of acquisition-related costs and expenses, and $551,000 of litigation expenses for the quarter. Turning to the balance sheet. We generated $3.2 million in cash flow from operations during the quarter, bringing our total cash and investments to $42.5 million at March 31st. Our accounts receivable balance of $13.7 million represents a DSO of 52 days. As part of the share buyback program we announced in December, we repurchased approximately 137,000 shares during the quarter at an average purchase price of $7.33 per share. This leaves roughly $9 million remaining of the $10 million buyback program, which runs through December 2020.
Given the current global pandemic, our board has opted to put the repurchase activity on hold for the time being. Moving to guidance for the remainder of fiscal 2020. Mitek is withdrawing its previously provided guidance for this fiscal year ending September 30, 2020, due to the uncertainty of the full impact of the COVID-19 pandemic on the economy, our customers, and our business. In closing, we are pleased with our results for the second quarter, which include record revenue and significantly improved profitability, and we look forward to continuing to deliver the essential services that Mitek provides. Operator, that concludes our remarks. We'll open the line for questions.
Thank you. If you would like to ask a question, please signal by pressing star one on your telephone keypad. If you're using a speakerphone, please make sure your mute function is turned off to allow your signal to reach our equipment. Again, press star one to ask a question, and we'll pause for just a moment to allow everyone an opportunity to signal for questions. Our first question is from Mike Grondahl with Northland Securities. Please go ahead.
Yeah. Thanks, guys, and congratulations on the quarter. Could you talk a little bit about the new customer funnel for Mobile ID and kind of what you're seeing there in this environment?
Hey, Mike, it's Max. Yeah, thanks for the positive comments. Yeah, I think we've been building that pipeline for the six quarters I've been with the business. We've been retooling a number of things within the organization. The go-to market is a big part of that, both our message, how we position, and then in the course of the last three or four quarters, as those efforts have taken root, we've made a lot of additions to the team, powerful additions to the team by way of personnel, bringing in a new sales leader at the beginning of the calendar year this year for the Identity U.S. business. Really made some big strides in Europe. About half of our Identity business comes from the EU. In that regard, I feel good about the opportunities.
I think the unknown and one of the things you heard in Jeff's remarks there is just what does this mean? What is the pandemic, and the shutdown, and just the slowdown in overall consumer spending, and big unemployment numbers that we're seeing, what does this mean to those opportunities and more importantly, to the businesses that we have with those opportunities? I don't know if that provides the color you're looking for, but that's probably as smart as we are this far into it.
Got it. In the Mobile ID business, how much of that would you say is online, and what piece of it is sort of offline at a physical location? Have you broken that?
Just pull on that a little bit?
Sure. With your Mobile ID product, how much of it could be done from someone's living room versus maybe someone has to go into a physical store?
Well, it could be 100% done remotely, right, from a mobile device. We do have use cases. What's an easy example? A retail bank location or branch where when you set up an account, typically you provide your documents and they take your documents and make a copy or some of that. That's a very, very small part of our business. The overwhelming majority of use cases, both the current transaction volumes that we're seeing as well as the pipeline we just talked about, over 95% of those use cases are wrapped around the idea that you're doing that remotely.
Got it. Okay. Thank you.
Our next question is from Bhavan Suri with William Blair. Please go ahead.
Hey, guys. Can you hear me okay?
Yeah.
Great. Thanks for taking my question and nice job. I guess I just want to touch a little bit on the current environment. We've obviously seen through conversations with CIOs that it's going to accelerate, especially coming out of it, the idea of digital transformation and things like that. You're kind of at the forefront of some of this, right? If you think about mobile check deposit and the idea of doing this remotely, you think there are all sorts of processes, whether it's stuff with DocuSign or things like that. I guess I'd love to understand sort of how those conversations are progressing. You talked a little bit about pipeline, but a little more color in terms of sort of what you think this is doing to drive transformation in your go-to-market, especially with the new SVP of Sales.
Yeah, sure. I think it's trying to strike the balance between what you're pointing out, Bhavan, which is that if you're a bank and if you don't have the ability to onboard new customers through a mobile device or digitally, expecting somebody to come down to a branch today is It's not impossible, but it's highly unlikely. I'll use a couple of examples. We're balancing that against what's happening with the economy. What does that do to folks? How much credit card uses there are going to be in the short term, how much buying is there going to be remotely. Kind of back to your question.
In this current relevant example I can use is when you think about Italy and just being kind of the center of the storm a month ago, and we've got customers in Italy, we've got banking customers in Milan, and folks who have basically signed up but are in the middle of implementation. We were being urged by those customers and our partners, the implementation partners we have, to help accelerate those implementations because there was absolutely no way, because the lockdown was so severe, there was no way for Italian banking customers to go to a branch. The ability to actually use Mobile Verify to validate somebody's identity, even if they're an existing customer with somebody like a buddybank just the ability for them to validate a transaction over a certain threshold of euros.
A transaction over EUR 1,000 you're going to do another revalidation using those government-issued identity cards. Those are the examples of the acceleration. Just a simple one in a really hot zone relative to the pandemic. Jeff, anything you'd add to that?
All I'd add is the way I view this longer term, this just really reinforces the need and for us, opportunity for identification services for every business that needs to transact digitally. Longer term, this is all beneficial to what Mitek's trying to do. Near term, obviously, there's going to be bumps as companies, whether they were in our pipeline or looking to do something figure out the impact of the pandemic on their business and what kind of projects they're able to take forward. The great thing is everything we're delivering, well, most everything we deliver, I think, is towards helping companies get more revenue and sign up more customers. It's important for businesses to be able to do that. It's all good things in favor of identity verification.
Maybe let me ask a more direct question, and Jeff, you've known me a long time, actually know me well. I guess I'm surprised you wouldn't see an acceleration in the business given people have got stimulus checks that some are being deposited directly, but there's a whole bunch of checks being cut. There's more stuff being signed electronically. There's more of these sort of online transactions. Help me reconcile that idea, and I understand people are making decisions slowly, but you're embedded in 3,000 + banks. Those banks are seeing more check deposits, et cetera. Then obviously you've got sort of a recurring business that's growing nicely. You pull guidance. Put those together for me. If you just help me clarify that'd be really helpful.
Yeah. I'll take on the identity, and then I'll let Jeff talk about the deposits a little bit, the way the check model works there. I think everything you just said, Bhavan, is 100% correct. I think that's a great hypothesis, and now it's just a matter of when does that hypothesis play out? Does that take 30 days? Does that take three months? Does that take nine months for us to get to that place? We're bullish and optimistic that it'll be sooner than later, but just the last 45 days have been completely mind-boggling as to the rate of change things took place without absolute zero visibility as to what was happening. On the identity side, yeah, we're watching these projects accelerate. Some of the examples I just used. Again, come back and let Jeff talk about deposits.
You're also doing that into the teeth of huge unemployment claims and the bottom falling out of the economy, at least for some period of time. I think we're trying to balance being responsible with the optimism we have for the longer-term wind in the sails that this ultimately helps accelerate. Jeff, why don't you talk about the deposits a little bit?
Yeah. On the deposit side, we definitely expect to see an increase of volume usage due to the government checks that'll be sent out or are being sent out. That definitely will flow through the network. Bhavan, keep in mind the way that whole business works, right? All of our customers purchase upfront large blocks, the usage will need to flow through that. I imagine they'll come back and be repurchasing. Probably we'll see some of that repurchases come sooner. That's definitely favorable for our business. Hopefully, it's a one-time thing that the government's issuing all these checks. That'll be a one-time thing that we will definitely benefit from.
On the other hand, during this troubling economy, there's probably going to be a decline in checks that are written, just due to people having less money, but also there'll be less payroll checks due to unemployment. There's kind of a balance there. We expect real positive on deposit usage, but there are other factors in there as well.
Got it. No, that's really helpful. One last one from me. Expecting a ruling on the declaratory judgment against, say, Northern California and Texas. Love to understand how that's going and when we would expect the update. Has the timeline for the legal stuff been extended because of COVID, and kind of maybe an update on milestones? I know there's two questions buried in there, but sort of an update on the process with COVID extended.
The next milestone obviously is this DJ action that's now going to be contended in the Eastern District. From a timing perspective, I think it's natural to have expected that over the course of the last 45, 60 days, the wheels of justice that normally grind along, it's probably a little slower just because of everything we've already talked about and we're all experiencing personally. It hasn't stopped. The timeline remains largely the same.
Gotcha. Thank you, guys. Appreciate it.
Please go ahead.
Hi. Thank you for taking my question. Max, starting with you. I apologize, I jumped on the call a little bit late, so you may have covered this in your earlier prepared remarks. I was wondering if you'd just review what the company is doing, the COVID-19 disruptions.
Hey, Mark. From a cost containment perspective, I think we're being conservative in the course of the next month, two or three. From a spend perspective, while I think we're being judicious and we've hopefully established our reputations as good stewards. We're not pulling anything back. We said in the beginning of the call, we're a modern digital business. Tops. We've been highly secure VPN environment. We announced work from home. People took their laptops, went home, and the next day got up and went to work at my kitchen table. Judicious and continue to be conservative. We continue to invest and we continue to grow both sides of this business. Jeff, anything you'd add to that?
in this work-from-home environment.
With respect to the sales organization and ID, has there been a shift in focus getting your existing customers to buy more of your product, more of your solutions?
Yeah, I wouldn't refer to that as a shift in focus. I think we actually have a dual focus. At the beginning of our fiscal year, split the team. We basically took what had been an all-purpose go-to-market team and separated new business from expansion within the hundreds of customers that we have on the identity side. I think that was a natural outgrowth of just particularly on the tier one and tier two existing customers accounts we had in the select segments of the market for new identity that we've been after. Those segments are the financial services. It's a natural progression for us, a natural evolution for us.
Okay, great. Jeff, bringing you in here. Despite operating margins being up significantly year-over-year, cash flow from operations was down this quarter. I was just wondering if you could run through some of the puts and takes in cash flow this quarter.
Sure. I guess the most unusual thing in the quarter for cash is we spent about $1 million on a stock repurchase. Other than that, the changes affecting the cash flow from operations number are really just accounts receivable, a little higher at the end of the quarter, and we paid down some payables. Nothing going on in there other than just some minor working capital changes, really. That stock buyback, which I don't know if you caught that on the call.
Okay, great. Thank you. That's all for me. Thanks.
Our next question comes from Allen Klee with National Securities Corporation. Please go ahead.
Yes. Hi. My first question was, I just wasn't sure if I caught something right. When you talked about what the revenue growth rates were for identity verification and then for deposit imaging, I thought I heard 21% and 13%. Were those the numbers?
Yeah, that's correct. Deposits was up 13% and ID was up 21%.
Okay, wonderful. Do you have a general sense of what percentage of your revenue you get from segments that are what you pointed to, like hospitality and travel and any other areas that are the obvious ones that might get impacted?
We don't publicly break that out. I would say our exposure to travel and hospitality, lower side. We have a couple customers that are of nice size, but we don't have numerous customers in travel and hospitality. We've spoken to you before about Airbnb being a customer of ours, and as you can imagine, their business took a pretty big, that would've probably been the biggest impact for us there.
It would've been the identity transactions. I think, Allen, just to add on to what Jeff's saying, we did that acquisition of ICAR three or four years ago, and that's that hardware line you see in our income statement. Most of that hardware in the Mediterranean. I don't know those numbers off the top of my head, Jeff. They're not.
Yeah, there is exposure there as well. They're used in hotels.
If you look at your business of how it's been doing in April compared to March, what can you tell us?
Our Q2 results, I don't think we're going to sit here and try to pontificate or provide information around what's happening in April. We'll do that in our Q3 earnings.
Okay. My last question is, on the checking side, you talked about some of the pluses and minuses. Can you give us a sense of maybe what % of the revenues in that segment come from payroll checks?
I actually have were deposited. We don't really see if they're payroll checks or if they're small business or if they're large business, any of those things. I really couldn't answer that one for you.
As a reminder, that is star one if you would like to ask With Roth Capital Partners, please go ahead.
On the check volume side, you maybe had some takes, but what's a trend work, maybe in April, versus March. Is that trend still increasing? Second question. There's been a massive shift to everything e-commerce. I'm curious as to seeing benefits amongst the e-commerce ecosystem. Is it more on the logistics side, i.e., the Instacart of the world, and/or are there new opportunities like an e-commerce? The reason I ask that is it's very hard to get a new cell phone now popping up for you. Three, usually I think you give the number of new ID customers. Curious if you have that. People may be more reticent to want to go to ATMs now.
I'm wondering, is it more of an accelerant in conversations that we need to have some of these solutions now in terms of opening up accounts and then doing everything remotely as opposed to seeing the ATM as a channel for transacting? Thanks.
Now Jeff. Do you want to take on the check trends first?
Sure. Don't have a complete month yet of check reporting, so I couldn't really comment about April, Darren. Thing is, when I look at the checks that were reported in Q2, it was usage as we expected in the low teens, like we've been talking about. I really don't know how to predict how many of the government checks will be issued in check form versus direct deposit. Our team has worked with the Federal Reserve to make sure that the format of the check that they're working is going to work well with Mobile Deposit. We're really looking forward to seeing what comes from that, but I really can't forecast anything on that right now. As of April, I have no way to tell you. Let's see what else is on checks. The ATMs.
I don't know that ATMs necessarily impact, unless I'm not thinking along the lines you are, that they impact identity. Most of our conversations are, you can't go to a branch now to deposit a check. Nobody wants to touch an ATM, the best option is Mobile Deposit. It's another thing that's in favor of encouraging people to use mobile banking, Mobile Deposit. We think we'll get users who haven't done it before, we think that that's going to contribute to just continued increased adoption by consumers of Mobile Deposits. Again, favorable. Being six weeks into the pandemic, it's really hard for us to forecast anything this early. We do feel that it's going to be very positive for the Mobile Deposit business.
Yeah, likewise. If I pick up on the questions that are more identity-related, I think, Darren, right now, what we've seen since the middle of March, maybe even a little earlier in March, is more of the reaction to this crisis. What started as a health crisis, which now has turned into a global economic crisis. The things that we're seeing where volumes are really going up are exactly that, right? The shopping providers. You mentioned mobile phones, and Asurion's a good customer, a great customer for us in making phone claims if your phone is destroyed or not working or you lose your phone, that kind of thing. We're seeing those volumes increase. Got a European customer that basically does identity verification for the U.K. government for government services like unemployment filing. What's another example in the financial services? All those PPP loans.
I mean, we processed thousands of transactions from small mom-and-pop shops that didn't have merchant banking services when filing for PPP loans which we're now seeing the second wave of that start to spark up based on the increased funding in that program, the SBA. Those are the kinds of examples we've seen so far. I would refer to that as the reaction stage. Hopefully, optimistically, over the course of the next month or two, hopefully, we start to get to the place where we start to see the recovery mode. I think that's back to some of the questions that were asked by some of your colleagues and where you were alluding to for e-commerce and digitization. Who wants to go down to a bank and apply for a credit card or apply for a new account?
That's a dirty place with a lot of germs and potentially having viruses, right? I think I used the example of the Italian banks, but we're seeing that across the board where folks that had these digital automation programs are accelerating those. That's what we expect to happen. I think we should expect that to happen broadly. Now it's just a matter of how long that takes and how serious folks are around that. Did I miss anything in there, Jeff?
I don't think so.
Max, what's the number of new ID customers in quarter?
I think we track that now with the resellers for some of the ICAR solutions that we have. I mean, those numbers are dozens and dozens of customers. I think that the devil's always in the details as to, you mentioned some of our bigger customers in your question. That's taking those dozens and dozens and sifting out who's going to be the next big customer, who's going to have those really big volumes. I think tracking that number is just not that valuable. I don't know that it is helpful.
Got it. Thank you.
There are no further questions at this time. I would like to turn it back over to Mr. Todd Kehrli for closing remarks.
Thank you, operator. Thank you everyone for joining us today. We look forward to updating you again next quarter. Our call has concluded. Have a wonderful day.
This concludes today's call.