Rent the Runway, Inc. (RENT) Q2 2024 Earnings Call Transcript

Lease the Runway, Inc. (NASDAQ:RENT) Q2 2024 Earnings Convention Name September 5, 2024 4:30 PM ET

Company Members

Cara Schembri – Chief Authorized & Administrative Officer
Jennifer Hyman – Co-Founder, Chief Government Officer and Chair
Siddharth Thacker – Chief Monetary Officer

Convention Name Members

Matt Condon – Residents JMP Securities
Ashley Helgans – Jefferies

Operator

Welcome to Lease the Runway’s Second Quarter 2024 Earnings Outcomes Convention Name. Presently, all contributors are on a listen-only mode. An issue-and-answer session will comply with the formal presentation. [Operator Instructions]. As a reminder, this convention is being recorded.

I might now like to show the decision over to Lease the Runway’s Chief Authorized and Administrative Officer, Cara Schembri. Thanks. You could start.

Cara Schembri

Good afternoon, everybody, and thanks for becoming a member of us right now. Throughout this name, we’ll make references to our Q2 2024 earnings presentation, which could be discovered within the occasions and presentation part of our Investor Relations web site. Earlier than we start, we wish to remind you that this name will embody forward-looking statements.

These statements embody our future expectations relating to monetary outcomes, steerage and targets, market alternatives, and our progress. These statements are topic to numerous dangers, uncertainties, and assumptions which might trigger our precise outcomes to vary materially. These dangers, uncertainties, and assumptions are detailed on this afternoon’s press launch, in addition to our filings with the SEC, together with our Type 10-Q that shall be filed throughout the subsequent few days.

We undertake no obligation to revise or replace any forward-looking statements or data, besides as required by legislation. Throughout this name, we may even reference sure non-GAAP monetary data. The presentation of this non-GAAP monetary data isn’t supposed to be thought-about in isolation or as an alternative to monetary data introduced in accordance with GAAP.

Reconciliations of GAAP to non-GAAP measures could be present in our press launch. Slide presentation posted on our investor web site and in our SEC filings.

And with that, I am going to flip it over to Jen.

Jennifer Hyman

Thanks, Cara, and thanks everybody for becoming a member of.

On our final two earnings calls, I highlighted our two large objectives for 2024, attending to free money circulation break-even and returning to progress. I am excited to report outcomes for Q2 that beat our expectations. And because of this, we’re elevating income steerage for the complete yr. What you are seeing in our outcomes is momentum. We have dramatically simplified our inner objectives and organizational construction in order that we will aggressively pursue the largest alternative areas for our enterprise.

We imagine that the enterprise is demonstrating that it is at an thrilling inflection the place continued progress and free money circulation break-even this yr are squarely inside our attain. Q2 ’24 income was $78.9 million, up 4.2% year-over-year, exceeding the excessive finish of our $76 million to $78 million steerage. Adjusted EBITDA was $13.7 million, or 17.4% of income, our ninth consecutive quarter of optimistic EBITDA and exceeding the excessive finish of our 14% to fifteen% margin steerage.

Transferring on to Q3, we’re guiding to an acceleration in income progress with Q3 income anticipated to extend 3% to six% year-over-year. Lastly, we’re reiterating our purpose to be free money circulation break-even in full yr ’24. One of many areas of our enterprise the place we imagine that the momentum is most palpable is in our particular occasion rental enterprise reserve.

The reserve enterprise is what we launched the corporate with 15 years in the past. It is a easy worth proposition. Each girl has to purchase outfits for occasions, a marriage, a promenade, a gala, a vacation get together, that she hardly ever wears once more. So we give her the power to hire attire and equipment a la carte for round 10% to fifteen% of the retail value. The addressable marketplace for occasion leases is massive, and we’re nonetheless the one firm of scale who’s working on this house. As we have mentioned on previous calls, reserve income has been declining for just a few years, and we have been targeted on reinvigorating it.

In June, we devoted a brand new cross-functional pod underneath new management to give attention to constructing reserve over the following few years. By July, orders have been up round 10% year-over-year, and in August, orders have been up round 20% year-over-year. Equally thrilling, new buyer progress into reserve is up round 50% year-over-year. That is with none advertising and marketing adjustments or incremental advertising and marketing {dollars} in anyway. Simply deep give attention to bettering the end-to-end buyer expertise and guaranteeing that we optimize stock availability for our clients.

Traditionally, new buyer progress into reserve was a wholesome supply of repeat orders and upsells into subscriptions. We plan to make use of our reinvigorated lifecycle advertising and marketing operate to reignite this flywheel. In 2H, you too can count on to see us give attention to search engine optimisation for reserve to drive natural site visitors right here, simplifying the UX of the expertise, reinforcing our match assure, bettering our upsell expertise, and specializing in turning our models as effectively as attainable to maximise income. We’re very optimistic about continued progress in reserve in H2.

From a product perspective, we accomplished a number of large tech tasks in Q2 that have been geared toward bettering vital elements of the prospect funnel and making the location even quicker throughout providers. We additionally made a number of adjustments designed to simplify our checkout course of that had in whole virtually doubled checkout completion charges in comparison with the primary half of the yr. We imagine that this could have optimistic impacts on conversion all through the second half of the yr.

We upgraded the velocity and efficiency of the entire key pages on the location considerably. Our grids, for instance, are loading virtually 10x quicker now than they have been originally of the yr, which has lowered our bounce charges on these pages by round 30%. As we up to date efficiency, we have been capable of extra simply replace the UI of the location, reminiscent of making our product element pages much more compelling, which has elevated the add-to-bag price and really importantly, permits us to acknowledge good points in search engine optimisation quicker.

We plan to take a position considerably into search engine optimisation within the second half of the yr geared in the direction of making recognizable good points to natural site visitors because of this. Lastly, we have made our picture evaluation course of extra seamless, which has continued to dramatically enhance the quantity of critiques we’re receiving per product. Our buyer critiques are a vital device in serving to new clients decide whether or not an merchandise will match them and improve consolation with sizing, which once more drives conversion.

We imagine that the work accomplished in first half marks a big milestone for Lease the Runway, as most of the main tech tasks we launched into, in some instances a number of years in the past, to improve our website and funnel efficiency have both been accomplished or in good condition. We subsequently really feel assured shifting the best way we work right into a simplified construction the place we’ve got aligned behind the highest three priorities for the following few years and have aggressively stacked cross-functional groups towards these enterprise objectives.

We additionally imagine that our cross-functional groups are nicely positioned and with the suitable talent units to execute velocity and agility and function akin to a mini startup. These objectives embody rising our reserve enterprise and subsequently our buyer funnel into the corporate, growing subscriber loyalty, particularly throughout her onboarding expertise and growing natural site visitors to Lease the Runway.

Turning subsequent to advertising and marketing, with a brand new workforce in place, we’ve got continued to make quarter-over-quarter progress in diversifying our advertising and marketing channels, overhauling and modernizing our inventive to make all of our contact factors extra aspirational and getting the model again out in entrance of shoppers. We have now developed our content material improvement in order that it is extra speedy and agile as we imagine that well timed and interesting content material is vital to bettering the efficiency of all of our channels, together with social and our paid efficiency.

You possibly can count on to see new natural content material launch on our channels with a lot greater frequency. In Q2, we noticed tax improved year-over-year by almost 15%. A few of this may be attributed to diversifying our channel combine. We have seen some early success advertising and marketing on TikTok and Pinterest, given our goal demographic. Within the second half of the yr, we’re targeted on turning again on model advertising and marketing, which alongside search engine optimisation, we hope will catalyze progress in natural site visitors. One of many components of our technique are month-to-month icon campaigns.

We plan to accomplice with buzzy superstar expertise for activations targeted on curating their iconic closets and providing it as rentable to Lease the Runway subscribers. This furthers our mission of celebrating actual proficient modern girls all around the world and telling their tales. Later this month, we’re taking Lease the Runway on the highway to among the greatest school campuses in certainly one of our quickest rising areas for RTR, the South.

We’ll go to campuses just like the College of Texas, Ole Miss and College of Georgia, the place the social tradition is robust, and we see a chance to convey RTR to the ladies on campus who want a useful resource for Greek life and their many occasions. This program is anticipated to incorporate in actual life activations on campus and can contain school influencers and the relaunch of our school ambassador program, which was a supply of super model consciousness for Lease the Runway pre-COVID. And proper on deck are some enjoyable social first activations for vogue week in New York.

We imagine our designer assortment is likely one of the greatest aggressive benefits. So reinforcing Lease the Runway’s place because the rental firm that permits you to hire items straight from the runway is vital. On stock, this is a vital and thrilling time of the yr the place we get to plan our 2025 purchase.

For 2024, we efficiently executed on our depth technique and have seen outdoors demand for the 2024 purchase within the first half of the yr. Waiting for 2025, we need to solidify Lease the Runway’s place as the style chief within the rental house by refreshing our assortment and leaning into our energy in attire. We plan to overtake our model matrix to offer our buyer an much more elevated, aspirational, emotional and vogue ahead expertise.

We see alternative throughout print, coloration and emotional items and plan to take care of depth, but in addition improve breadth to make sure that we aren’t solely serving our refined core buyer however providing an assortment that may entice new clients.

In conclusion, I’ll say the simplification of objectives throughout the firm and give attention to implementation of the few issues that may result in important progress has created an power and pleasure inside the corporate that’s palpable and feels nice after some troublesome years. We’re motivated by our momentum and able to proceed rising by persevering with to enhance our buyer providing and expertise and attending to our purpose of free cashflow breakeven this yr.

With that, I am going to flip it over to Sid.

Siddharth Thacker

Thanks Jen, and thanks everybody for becoming a member of us. We continued to make good progress within the second quarter. Each Q2 income and adjusted EBITDA exceeded the excessive finish of our steerage vary.

Our Q3 2024 income steerage of 75 million to 77 million or 3% to six% income progress versus Q3 2023 implies a continued acceleration of income progress versus Q1 and Q2 of fiscal 2024 on the midpoint of the steerage vary. As I’ll talk about additional, we’re additionally elevating our income steerage for fiscal yr 2024 and reiterating our dedication to succeed in free cashflow breakeven for the complete yr. Briefly, we count on to develop income and considerably enhance profitability this yr.

I wish to take a second to debate the year-over-year decline in Q2 ending energetic subscribers. We imagine the first cause for this year-over-year decline is the numerous reductions in promotions this quarter versus final yr’s second quarter. The truth is, excluding subscribers generated from the best degree of promotions in Q2 ’23, our year-over-year subscriber progress would have been significantly better than the 6% decline we reported as of Q2 ’24.

Notably, ending energetic subscribers as of September 1, 2024 have been already roughly flat year-over-year. We additionally imagine that our stronger income efficiency in Q2 2024, regardless of decrease ending energetic subscribers, demonstrates the success of our technique to be much less promotional. As Jen outlined, we’re targeted on driving innovation and enhancement to the shopper expertise throughout almost each side of our enterprise.

We’re excited by our second half plan. The underlying monetary place of the corporate and our go-forward expectations are significantly stronger versus final yr with rising income and significant enchancment in cashflow, which I’ll stroll by way of in additional element. Our Q3 and full yr 2024 steerage are optimistic indicators of additional monetary progress.

We’re rising income whereas spending much less on promotions. Our reserve enterprise is demonstrating stronger traits on a year-over-year foundation and resale is rising at excessive ranges versus final yr. Let me now evaluation our monetary outcomes for the quarter.

We ended Q2 2024 with 129,073 ending energetic subscribers, down 6.2% year-over-year. Common energetic subscribers in the course of the quarter have been 137,455 versus 141,393 subscribers within the prior yr, a lower of two.8%. Ending energetic subscribers decreased from 145,837 subscribers on the finish of Q1 2024 due primarily to seasonally weaker acquisitions.

Whole income for the quarter was $78.9 million, up $3.2 million or 4.2% year-over-year and up $3.9 million or 5.2% quarter-over-quarter. Subscription and reserve rental income was up barely year-over-year in Q2 2024, primarily attributable to progress in reserve and better common income per subscriber because of decrease promotional spending. Different income elevated 35.1% or $2.7 million year-over-year attributable to elevated give attention to our resale enterprise which drove incremental cashflow and buyer loyalty.

Success prices have been $20.6 million in Q2 2024 versus $22.5 million in Q2 2023 and $20.6 million in Q1 2024. Success prices as a share of income have been decrease year-over-year at 26.1% of income in Q2 2024 in comparison with 29.7% of income in Q2 2023. Success prices benefited from our new transportation contracts with UPS, continued warehouse efficiencies and better income per order primarily from our resale enterprise. Gross margins have been 41.1% in Q2 2024 versus 43.9% in Q2 2023. Q2 2024 gross margins mirror greater rental product prices attributable to elevated funding in stock in fiscal yr ’23, offset partially by improved success prices. Elevated funding in stock displays final yr’s depth changes to extend stock in inventory charges in fiscal ’23 and past. Q2 2024 progress margins elevated quarter-over-quarter to 41.1% from 37.9% in Q1 2024 attributable to seasonally decrease income share funds and improved success prices as a share of income.

Working bills have been 17.7% decrease year-over-year due primarily to the favorable influence of our value discount efforts and decrease stock-based compensation bills. Whole working bills which embody expertise, advertising and marketing and G&A have been 49% of income in Q2 2024 versus 62.1% of income in Q2 2023 and 55.2% of income in Q1 2024.

Adjusted EBITDA for the quarter was $13.7 million or 17.4% of income versus $7.7 million or 10.2% of income within the prior yr. Adjusted EBITDA for the six months ending July 31, 2024 was roughly $20.2 million or 13.1% of income versus $12.2 million or 8.1% of income within the prior yr. Adjusted EBITDA enchancment year-over-year displays the influence of our fastened value discount efforts, greater income and decrease success prices partially offset by greater income share funds attributable to a higher proportion of income share models. Free cashflow for Q2 2024 was adverse $4.5 million versus adverse $17.5 million in Q2 2023 due primarily to decrease value of rental merchandise and better profitability.

Free cashflow for the six months ending July 31, 2024 was adverse $5.9 million versus adverse $29.6 million within the six months ending July 31, 2023. Free cashflow within the second half of fiscal 2024 is anticipated to be roughly optimistic $6 million. We count on that the advance will primarily be attributable to decrease working bills and decrease capital expenditures within the second half versus the primary half of fiscal 2024.

Decrease working bills are pushed largely by first half weighted advertising and marketing bills. We additionally count on improved working capital and better income within the second half of fiscal ’24 versus the primary half of fiscal ’24. We count on that almost all of the advance in second half free cashflow shall be pushed by timing of working and capital expenditures the place we’ve got good visibility.

I’ll now talk about steerage for Q3 2024 and monetary yr 2024. Let me begin with Q3. We count on income to be between $75 million and $77 million and adjusted EBITDA margins to be between 13% and 15% of income.

As outlined earlier, Q3 income steerage implies 3% to six% progress versus Q3 ’23, persevering with and bettering income progress trajectory on the midpoint of the steerage vary. As a reminder, income progress was adverse 6.3% year-over-year in Q3 ’23, roughly flat year-over-year in This autumn ’23, optimistic 1.1% yr over yr in Q1 ’24, optimistic 4.2% year-over-year in Q2 ’24 and is anticipated to be between 3% and 6% year-over-year in Q3 ’24. Our present enterprise efficiency offers us the boldness to extend a full yr 2024 income steerage to between 2% and 6% progress versus fiscal ’23.

This improve displays bettering traits in our reserve enterprise, stable progress on rising our retail enterprise and improved income per subscriber versus fiscal ’23. We proceed to count on adjusted EBITDA margins of between 15% and 16% of income. We additionally proceed to count on to be free cashflow breakeven for fiscal ’24 as talked about beforehand.

Thanks and we’ll now take your questions.

Query-and-Reply Session

Operator

Thanks. We are going to now be conducting a question-and-answer session. [Operator Instructions]. Our first query comes from the road of Matt Condon with Residents JMP Securities. Please proceed along with your query.

Matt Condon

My first one is simply on resurrecting previous customers. Are you able to simply discuss what you are seeing there at present after which perhaps simply speak concerning the broader alternative?

Jennifer Hyman

So we’re seeing energy in rejoin charges of previous clients. I believe that we have all the time seen that as we make enhancements in buyer expertise, the primary individuals to note are people who find themselves actively engaged on our advertising and marketing sort of comms listing, individuals who have been clients earlier than. So we’re seeing that that is really an amazing supply of progress for us now, our rejoiners.

After which simply the chance for us is large. Clearly, this market is rising in a short time. It has gone from being an early adopter conduct to being a conduct rental, being a conduct that is far more mainstream. And over the previous few years at Lease the Runway till 2024, we have been closely targeted on prices and profitability. Now we’ve got that clear imaginative and prescient to free money circulation break even, and we have reoriented your entire firm round progress. We have employed the suitable individuals, we have reignited advertising and marketing inventive, we have simplified our objectives. And these actions give me the boldness and you’ll see it demonstrated in our metrics that progress is coming for RTR. We have now momentum and we’ve got momentum throughout all completely different points of our enterprise proper now. It is not simply in a single space.

So I am actually enthusiastic about second half and I am significantly enthusiastic about how our methods that we have deployed, the place we put these cross-functional mini startups on actually simplified enterprise objectives are going to assist us into 2025 and 2026 ignite super progress for RTR.

Matt Condon

Nice, that is very useful. After which my second one is simply on the reserve enterprise and going off of your factors on simply the cross-functional groups, understood that is contributing to the success which you guys are having there, however perhaps simply from a product perspective, what do you see that these groups are arising with that is actually driving the acceleration of that enterprise?

Jennifer Hyman

So the groups are targeted on the complete end-to-end expertise for reserve. So to be clear, till fairly just lately, till June, there had been no devoted focus of a cross-functional workforce to order in a few years. And we hadn’t seen that enterprise decline for the previous few years.

Simply by nature of give attention to our particular occasion enterprise, we have been capable of go from declining year-over-year revenues to up 10% year-over-year in July and what I discussed up 20% year-over-year in August with new clients, importantly, up near 50% year-over-year. A few of the issues that the workforce are targeted on are maximizing our stock availability to be sure that our models can flip as many instances as attainable and hit as many purchasers as attainable. They’re targeted on our reserving home windows. They’re targeted on the UX and UI of the expertise. They’re targeted on ensuring that every one of our clients perceive that we give them a match assure in order that they don’t have anything to worry in coming to RTR. We’ll all the time be sure that they’ve one thing superior to put on for his or her occasion.

So you will notice us make agile adjustments to this enterprise over second half. And I really feel very assured in improved momentum on this enterprise and importantly, having this be an amazing funnel of recent clients into RTR.

Operator

Thanks. Our subsequent query comes from the road of Ashley Helgans with Jefferies. Please proceed along with your query.

Blake Anderson

Hello, it is Blake on for Ashley. Thanks for taking our query. Wished to begin off with advertising and marketing. You talked about a number of completely different thrilling advertising and marketing initiatives. Are you able to talk about your willingness to lean into advertising and marketing to stimulate gross sales progress, sort of relying on what ROIs you see, and perhaps should you might sort of discuss what you are most enthusiastic about by way of your advertising and marketing initiatives within the second half.

Siddharth Thacker

Sure. I believe the vital factor to understand right here is, we traditionally have by no means even had a chief advertising and marketing officer. We have now probably not had individuals targeted on this space in a means that considers the whole thing of the advertising and marketing expertise. It is not advertising and marketing for us traditionally has been very closely targeted on pay channels, on few pay channels particularly.

And I believe what we’re attempting to do now could be consider very critically, what’s the return we’re getting on every of these pay channels? How a lot can we broaden out these channels to extend the sort of returns we’re getting there? Can we construct out new channels utilizing, whether or not it is associates, whether or not it is influencers, simply new methods through which we will attain clients.

Now, because of doing a few of this work, what we’re discovering is that there are alternatives to enhance effectivity, take among the {dollars} that have been most likely not working as arduous for us and reinvest these in thrilling model initiatives and different initiatives that Jen talked about, a school tour and so forth, that basically enable us to exit into the world and get individuals enthusiastic about what we’ve got to supply.

Jennifer Hyman

Yeah, and simply to make clear one factor that Sid stated, we very a lot did have chief advertising and marketing officers and full funnel advertising and marketing strategy actually till COVID. And it is within the put up COVID years that the main target had actually been, as I’ve talked about in earlier name, extra on backside of the funnel and on issues that we knew what the ROI was the very subsequent day. We, by nature of hiring new expertise right here, new management, new workforce, that was the primary indication of our need and willingness to reinvest into advertising and marketing in a brand new means.

And reinvesting means diversifying our channels. It means pulling up from being a solely backside of funnel marketer to now being mid funnel and full funnel, which is what we did, for the primary 10, 11, 12 years of the enterprise. It’s basically to us, one of many key objectives of our firm, as I discussed, we’ve got three objectives we’re aligning behind.

A kind of three objectives is growing natural site visitors. The best way that you simply improve natural site visitors is sure, search engine optimisation is a element of it, however the different bigger element is making clients fall in love with you once more, in order that they arrive to your website immediately. How do you do this?

It is by way of funding into model. It is by way of funding into in actual life occasions, into ambassador networks, into influencer networks, into issues that we did very efficiently prior to now that we’re bringing again, modernizing them for 2024. And we’re actually excited as a result of the model consciousness of Lease the Runway is extraordinarily excessive.

The model love for this firm is extremely excessive. And we’re simply seeking to reactivate a few of that sort of latent love that is on the market. We talked about on the final name that we had executed these in actual life occasions in New York and Atlanta, and we noticed lots of and lots of and lots of of ladies standing on strains across the block to get into an RTR occasion.

That’s simply demonstration of the palpable emotion that folks have in the direction of this model. We’ve not given our clients a option to exhibit that palpable emotion over the previous few years due to how backside of the funnel targeted we’ve got been. And so by reigniting the whole lot round advertising and marketing, I believe that it’ll not solely drive greater natural site visitors, however greater buyer engagement and better buyer virality.

So simply be looking out for an unlimited quantity of exercise within the second half of the yr that we talked about within the name is on deck and we’re again.

Siddharth Thacker

I believe the principle, one fascinating level to spotlight right here is should you really look at the entire selections we have made prior to now, we spend a whole lot of time addressing prices, addressing the associated fee construction. We spend a whole lot of time enthusiastic about stock and ensuring stock in inventory charges have been acceptable for our clients in fiscal ’23. If you happen to take a look at the entire selections, we have made put up that time limit, it ought to provide you with a reasonably good indication of how a lot we’re desirous about leaning into progress and into advertising and marketing and into the sorts of issues that may make clients fall in love with.

So if you concentrate on the occasions we’re doing in actual life, if you concentrate on the New York Metropolis retailer, if you concentrate on the school tour, I imply, the entire issues that broadening our channel, the entire work we’re doing is actually critically targeted on simply progress and driving progress.

Blake Anderson

That is actually useful. After which needed to revisit in gentle of sort of the problem client, needed to revisit your determination to scale back promos and simply sort of discuss learnings from that call to date and the way you are enthusiastic about your value factors.

Siddharth Thacker

Positive. So only a fast recap of what we have mentioned beforehand. Traditionally, we used to have a whole lot of promotions that have been multi-month in nature. So we might do two and three month promotion. We have now gone out and altered all of these promotions to largely be single month targeted. So one month targeted promotion.

The opposite factor we mentioned when final yr on the time was, we examined a wide range of completely different promotional methods, some low, some excessive in Q2 of ’23. And what we’ve got discovered is to discontinue among the promotions that weren’t returning ample {dollars} to us, that weren’t helpful to retention and so forth. And to proceed promotions to focus on the shopper segments that we thought have been helpful to bringing clients in.

And so what you are seeing by way of the sub depend for Q2 ’24 versus Q2 ’23 is actually only a reflection of discontinuing or not repeating among the significantly excessive ranges of promotions that we weren’t significantly glad with. And in order we identified in September, sub depend is roughly flat year-over-year. So clearly these promotions did not have a powerful retention factor to them.

And I believe the place we are actually is fairly glad with the place the promotional cadence of the enterprise is. We expect it is in a wholesome place and we’re actually spending all of our time not targeted on promotions, however actually targeted on the entire different methods to drive progress and retention for our clients.

Jennifer Hyman

And I believe that the reserve enterprise and the momentum that we have had there, the place once more, we have seen 50% new buyer progress into that enterprise in August, is testomony that with out incremental advertising and marketing {dollars}, with out promotions, with out detrimenting value in these arenas, by nature of bettering the shopper expertise and specializing in maximizing our stock availability, you may drive much more clients into RTR. And I believe that that is as a result of product market match of this enterprise. And it is as a result of worth that we already give the shopper by nature of enabling her to hire a designer costume for round 10% to fifteen% of the retail value. That’s enormous worth that makes our value factors extra aggressive with quick vogue than with conventional designer vogue.

Blake Anderson

That is nice coloration. Thanks a lot and better of luck for the second half.

Operator

Thanks. There aren’t any additional questions at the moment. I might now like to show the decision again over to administration for any closing feedback.

Jennifer Hyman

Thanks for becoming a member of us right now. We’re actually excited concerning the second half of the yr and hope you keep tuned.

Siddharth Thacker

Thanks a lot.

Operator

And this concludes right now’s convention, and you might disconnect your strains at the moment.