© 2024 Alpha Spread Limited. All Rights Reserved.
www.alphaspread.com is not operated by a broker, a dealer, or a registered investment adviser. Under no circumstances does any information posted on www.alphaspread.com represent a recommendation to buy or sell a security. The information on this site, and in its related newsletters, is not intended to be, nor does it constitute, investment advice or recommendations. The information on this site is in no way guaranteed for completeness, accuracy or in any other way. In no event shall Alpha Spread Limited be liable to any member, guest or third party for any damages of any kind arising out of the use of any content or other material published or available on www.alphaspread.com, or relating to the use of, or inability to use, www.alphaspread.com or any content, including, without limitation, any investment losses, lost profits, lost opportunity, special, incidental, indirect, consequential or punitive damages. Past performance is a poor indicator of future performance.
You don't have any saved screeners yet
Intrinsic Value is all-important and is the only logical way to evaluate the relative attractiveness of investments and businesses.
Intrinsic Value is all-important and is the only logical way to evaluate the relative attractiveness of investments and businesses.
[00:00:05] Good afternoon and welcome to Bill.com first quarter of fiscal 2021 earnings conference call. Joining us today for today's call is Bill Dotcoms Video Rinella third and CFO John Redig. At this time, all participants are analysts only mode. After the Speaker's presentation, there will be a question and answer session to ask a question. During that time, you will need to press star one on your telephone keypad. Please be advised that today's call is being recorded. If you require any further assistance, please press star then zero. What that. I would now like to turn the call over to John Reddick for introductory remarks. John.
[00:00:50] Thank you, operator. Welcome to build dot coms, fiscal first quarter, 2021 earnings conference call. We issued a earnings press release a short time ago and furnished the Form 8-K to the FCC, the press release can be found on the investor relations section of our website. With me on the call today is Renee Alacer, chairman, CEO and founder of Blackcomb. People, again, please remember that during the course of this call, we made a forward looking statements about the operations and future results of the Larcombe that involve many assumptions, risks and uncertainties. If any of these risks or uncertainties develop or if any of the assumptions proved incorrect, that your results could do for materially from those expressed or implied by our forward looking statements. For discussion of the risk factors associated with our forward looking statements, please refer to the text in the company's press release issued today and to our periodic reports filed with the Securities and Exchange Commission, including our foreign 10K dated August 30 years Twenty twenty. We disclaim any obligation to update any part of any statements. On today's call, we will refer to the gap and non financial measures, the nonrevenue financial figures discussed today are non-cash unless stated that the measure is a gap. No. Please refer to today's press release for the reconciliation of Japanangka financial performance and additional disclosures regarding these measures. Now, turn the call over to Renee Renee.
[00:02:19] Thanks, Don, and good afternoon, everyone. Thank you for joining us today. We kicked off our new fiscal year with strong Q1 financial results, which exceeded our expectations across the board because we continue to see significant demand for the dot.com factor. In Q1. We saw our SMB customers getting back to that, demonstrated by several of our key metrics showing improvement. We are excited about the increasing adoption of our platform throughout our diversified go to market eco system. For revenue, which we define as attrition plus transaction that grew by 53 percent year over year to forty three point eight million, we also delivered a strong non-GAAP margin of 77 percent in the quarter. Don, move our financials in more detail later, but first, let me give you an update on our overall progress and execution efforts. At the end of the first quarter, we achieved a company milestone by surpassing the 100000 customers that overall customer growth, 27 percent year over year. Our customers trust the dot.com platform to manage their workflows and process their payments, which totaled billions of dollars, not as a reminder, our platform extends well beyond our customers over two and a half million network members that day and get paid to do what I can. We believe that we are operating one of the largest B2B networks in the United States. Later, I'll be talking more about how we are focused on growing and monetizing this network. During the quarter, we processed twenty eight point eight billion in total payment volume for TPV, an increase of 31 percent over Q1 of the prior year.
[00:03:53] This demonstrates the strong customer demand for our pipeline and the new payment capabilities we've added over the last 18 months. He recently surveyed over 900 dotcom customers using a third party firm, survey respondents represented a broad spectrum of company sizes, industries and product usage. The results really showcase the dotcom strong value proposition, with 97 percent of respondents noting that dotcom allows them to operate their businesses remotely. The vast majority said that dot com enables them to digitize business operations described dotcom as essential to their operations. Does this value proposition that lead to our platform becoming mission-critical for our customers and our strong customer and revenue retention metrics? Customers that participated shared direct feedback, noting, and I quote, The dot dotcom enabled us to switch to primarily electronic payments once our office switched to being fully even during the covid-19 pandemic. It was easy to learn, but I'm bored, it's my new job at this company and easy to board members and to do real time sink with accounting software. The tender process for international contractors is much easier and more efficient, being able to enter the bills and court order based on an excellent. We also are pleased to see that our customers continue to have high levels of satisfaction as reflected in G to independent peer to peer review research this year. But I can move further to the upper right on his grid for small business AP automation and take over the number one reason to be the clear leader in the eyes of SMB.
[00:05:32] He remained in first place for market presence. Our average rating this year was four point eighty five on a scale of zero to five. And this market barometer of small business sentiment. At the end of the day, the satisfaction and value we deliver to our customers can best be illustrated by the customer experience. Manhattan Soccer Club is one of the largest soccer clubs in New York City. There were 16 teams, 1000 players and an annual budget of three and a half million dollars in nonprofit that offers all levels of development competition. Over the past few seasons, the paperwork and scores of managers and coaches was getting out of hand. Each year, their orders required more detailed proof, such as receipts, textiles, invoices, all of which had to be processed, sent back data and then filed in the home office of Sampoerna, director of operations the Dragon, and no longer uses paper track, reducing his workload and facilitating faster reimbursement for managers and coaches, and also provided the direct access to cutting down the time and just as importantly, the cost. The audit also transitioned off paper files to digital on our platform and noted, and I quote, I call build on my personal assistant. I'm also the president of a youth soccer league that weren't for the long time. I wouldn't have the skills to pursue my passion for developing and mentoring kids, soccer players. In addition to serving our customers, we're also focused on expanding our ability to create value for more than two and a half million network members.
[00:07:01] We work hard to simplify the process of getting customers, their vendors and their clients to connect and do business, which creates a healthy flywheel effect. For example, our platform intelligence includes data from suppliers who are currently in the building on network preneed suppliers. We store pertinent information such as Cassidy units address and other payment preferences to win an SMB joint. Our platform that new customers can instantly pay many vendors who are already in our network without going through the painful and time consuming process of collecting confidential financial and bank account details. Recently, we discussed our efforts at increasing the number of participating suppliers and airport on our platform, which in turn increases our virtual carte TV during Q1, we brought supplier enablement entirely in-house, employing our own vendor and matching logic. Automate this critical function by controlling this process ourselves. And and we've improved our ability to identify card accepted suppliers and pay them more quickly. Our own employees are better equipped than a third party to promote the benefits of a virtual card payments to our customers suppliers. Through these efforts, we are seeing early success and in the long tail suppliers to our network, we believe there's plenty of opportunity ahead as we continue to focus on creating a better user experience for suppliers. We have also been expanding our payment capabilities so that we can pay vendors faster on a prior call. We were adding faster payment functionality by leveraging the real time payment networks from declaring us.
[00:08:34] By the real time, Israel has been used primarily for consumer payments to date, we believe that there are interesting applications for B2B payments. According to a recent survey conducted by MasterCard and David Dotcom, 72 percent of companies stated that they intend to adopt real time payments within the next few years. We also hear from our own customers and network members that enabling real time payments is an important case. Leveraging the Israelis this past quarter to began rolling out a new feature called Instant Transfer with instant transfer, our network members can get paid 24/7 and their funds are available immediately. The currently charge they're shipping and have the warranty for the service it's in transfer is currently in pilot mode and we are pleased with early engagement data. His latest innovation demonstrates our continued efforts to deliver value to both sides, our network. Finally, I want to highlight another indicator of increased platform engagement, the growing use of our native mobile app September, the number of Babakhan mobile app downloads has doubled year on year and our number of active mobile users at an all time high at the end of the quarter. We attribute this increase in mobile usage to better promotion of it in the customer's desktop experience and the a deep linking to the mobile app and our work related emails. Looking ahead, we also expect a higher level mobile usage by our network members, driven by innovations like the instant transfer product mentioned earlier.
[00:09:59] Next, let me ask you on the progress with our go to market initiatives, starting with the status of our newest financial institution partners turning to our partnership with KeyBank DeCastro became generally available for its business banking customers in October and for the commercial banking customers this week. We are very pleased with how quickly we were able to stand up this partnership, despite the unexpected challenges presented by the 19 from March through September. With respect to our new relationship with Wells Fargo, the integration is now complete and we begin planning our service inside the bank's commercial electronic office portal in October. This means that the top three commercial banks in the country are now leveraging our white label solution. We are excited about helping them and all of our bank partners better serve their customers. Finally, we continue to work closely on the design and integration of our pipeline to serve the S&P customers of one of the top three small business banks in the US. Look forward to being able to announce details of our launch plans here in calendar 2021. The accounting scandal continues to be a strong part of our customer acquisition ecosystem, our relationships with over 5000 accounting firm partners accounted for 51 percent of our total customers and 46 percent of our total revenue in fiscal twenty twenty. Like most funds that are now working from home, accounts are operating in a similar setting, unable to get their. As a result, we have seen increased interest in our work from anywhere value proposition, particularly from family office and wealth management firms, to leverage some of the same tools that accounting firms used to serve their clients.
[00:11:35] Remote work resonate more and more the town as such, I would like to highlight one of our accounting partners, County with over one hundred and fifty employees and hundreds of clients, County is an outsourced provider, a back office to county, H.R. functions for meeting technology and venture backed companies. County relies on dot com to serve customers such as Ossana being fired by our intercom and Kaura in interview. Founder Burqini Guignol commented on the benefits of using the remote work environment, as she stated, and I quote, These clients utilize the time as they realize the benefits it provides, including the flexibility to operate their businesses remotely. When he took over the accounting function of an entirely paper based client in Seattle at the beginning of the lockdown, where employees were immediately ordered down, they were very concerned about being able to pay the bills and keep their business running with no interruption. We were able to to the company that Billikens cloud based service overnight dot.com saved the day. None of our success is possible without reform. Strong teams across the company during the quarter, we continue to expand both our management team and board of directors, adding top tier talent confidence joined our team as chief revenue officer because we continue to scale and grow the business. We saw the value in aligning our customer revenue opportunities under one leader.
[00:12:59] In this newly created role, Tom will focus on growing the company's overall revenue. It is the sales, marketing and strategic partnerships organizations for the company experience, cultural fit and agile learning are unique, and we're thrilled that he has joined about our content. We also added two independent directors to our board is in payments, executive Colleen Taylor and Brand Leader Alibiing. Palin has considerable experience with over 30 years helping different types of customers turn back around the world. He is currently the president and services news for American Express, and previously she served as the executive vice president of merchant services for Wells Fargo. Ali's background includes having served as the chief marketing officer for Verizon Media, which consisted of over 20 distinct is all brands reaching one doing customers. He also served as the chief marketing officer for AOL with responsibilities for global consumer and marketing brand strategy, as well as external and internal communications. In closing, I am pleased that our starting fiscal year, I'd like to give a shout out to all of our employees for their hard work and continued dedication. In spite of the many external distractions, employee engagement and energy has remained high. Everyone is focused on helping SMB succeed and the environment. I'm excited about the momentum we have in NY 21, their platform simplifies business for our customers and their network, making it easier for them to focus on what they do best. Now turn the call over to John to review our financials. John.
[00:14:34] Thanks for that. Today will provide a brief overview of our fiscal first quarter, 2001 financial results and discuss our outlook for the fiscal second quarter and Twenty twenty one. As a quick reminder, today's discussion includes non-GAAP financial measures. Please refer to the tables in our earnings press release for reconciliation from non-GAAP to the most directly comparable financial measure. With that background, let me turn to our financial results. We delivered solid first quarter results, a strong year over year growth in total and core revenue, as well as strong on gross margin, total revenue for Q1 was forty six point two million, representing growth of 31 percent over Q1 twenty twenty. Q1 revenue exceeded our expectations as customers continue to expand their use of our Taqwa. Core revenue, which represents subscription and transaction fees, was forty three point eight million in Q1 and grew 53 percent year over year. To provide additional detail on core revenue, see one subscription revenue increase to twenty four point six million, representing 36 percent growth from Q1 to Twenty twenty. This growth was driven primarily by the increase in customers on our platform. We're also starting to see the impact of the anniversary of our fiscal twenty twenty subscription price increase, which was phased in beginning in Q1 twenty twenty and continued through to three Twenty twenty. This will lead to tougher comparisons and year over year subscription revenue growth over the next several quarters.
[00:16:03] Transaction revenue increased to nineteen point two million in Q1, accelerating to 83 percent year over year growth. In addition to growth in transaction volume, we saw our investment in virtual parts supplier enablement starting to pay off earlier than expected in the quarter, translating into more suppliers enabled to receive virtual card payments and corresponding growth in virtual card TPV. We expected to see the benefits of taking the supplier enablement activity in-house accrue more gradually throughout the fiscal year. Well, we're very pleased with the progress we've made, scaling transaction revenue and driving a shift in revenue composition to variable price products like virtual cars, we anticipate year over year comparisons to fiscal twenty twenty to be more challenging, which will likely lead to lower growth rates for transaction revenues through the rest of fiscal 2021 as we begin to compare to more typical prior year comps. Moving to, quote, revenue, we generate a two point four million in revenue in Q1 and our annualized rate of return on customer funds held in Q1 was approximately 62 basis points, slightly above our estimate of range for the quarter and down from ninety five basis points last quarter. It's reduced yield affects the current low interest rate environment and maturing investments being reinvested at lower rate levels, which we expect to continue over the intermediate term. Turning to an update on our key business metrics, we ended the quarter with one hundred and 3600 customers representing year over year growth of 27 percent during the quarter, we added 55000 net new customers.
[00:17:35] We continue to experience broad based demand across all our channels. So overall net new customers were down from Q4 when we had a spike at the beginning of the work from home phase of the pandemic. We continue to be pleased with the breadth and diversity of our distribution channels, where our horizontal go to market approach results in no significant concentration. In fact, no partner accounted for more than three percent of total revenue in fiscal twenty twenty. Our net new customer results in Q1 were influenced by a few factors that I discussed on our prior call, including the expiration of the 90 day pre subscription promotion and fewer new customers from our account channel because tax season moved from April to July this year. We also added fewer cookbooks, simple guilty customers, as we began shifting our focus to cookbooks online advanced, where we are targeting larger customers with significantly more attractive unit economics. As I outlined on our last call, the next few quarters, we expect lower quarterly net customer adds before our newest financial institution, partnerships start to ramp. With the progress we're making in improving monetization of our existing customer base through transactions in that new customer metric will become less meaningful as we scale. Looking at total payment volume during the quarter, we processed twenty eight point eight dollars billion in TPB on our platform, an increase of 31 percent year over year.
[00:18:59] We processed over six point five million payment transactions during Q1, which was up 16 percent sequentially after two quarters of sequential declines. We believe that this increase in transactions is illustrative of SMB starting to get back to more normalized business activity compared to the prior quarter. Moving on to gross margin and our operating results are non-cash, gross margin for the quarter was 77 percent. We continue to expect gross margin in the range of 75, 77 percent in the near term, primarily as a result of infrastructure investments we are making to support our financial institution partners, as well as reduce revenue from the low interest rate environment. Turning to our nonstop operating expenses, R&D expense was fifteen point five million for the quarter, or 34 percent of revenue, it increased from 31 percent of revenue in the first quarter fiscal twenty twenty. As I mentioned on our Q4 call, we increased our R&D hiring to support product development work related to the new financial institution partnerships that we signed earlier this calendar year. Sales and marketing expenses were eleven point nine million or twenty six percent of revenue in Q1 of fiscal twenty twenty 2021, a decrease from 29 percent of revenue in Q1 of fiscal twenty twenty. Our spend level, our go to market sales and marketing capabilities was consistent with the level of spending Q4.
[00:20:20] Jeanna expenses were eleven point nine million or 26 percent of revenue, compared to 27 percent of revenue in Q1 of fiscal twenty twenty. As a reminder, unlike other software companies are, Gené expenses reflect their investments in risk management and regulatory compliance, which are a core part of our competitive advantage related to our payment capabilities. Looking ahead, we expect to see continued investments in this area. In Q1, our non-GAAP operating loss was three point seven million versus three point five million in Q1 of last year and are non-GAAP net loss was 2.8 million or loss of four cents per share, based on eighty point two million basic weighted shares outstanding. Because we had a lot on a gap basis, our diluted share count was the same as the basic share count for both Gap and non-GAAP EPS calculations. Moving on to the balance sheet and in cash, cash equivalents and short term investments were 700 million from 698 billion at the end of Q4. As of September 30th, Twenty twenty had one point seven dollars billion in customer funds on our balance sheet, which was up 25 million or one point five percent from the end of Q4. Lastly, I'll note that our balance sheet includes a liability of approximately 55 million, as well as the corresponding asset associated with our new San Jose headquarters and our Houston office leases.
[00:21:40] These items are the result of adopting new lease accounting standards as of July 1st, Twenty twenty, which require recognizing leases on the balance sheet. The end of the quarter was 639 employees, up 21 from the prior quarter. I would move on to our financial outlook. There continues to be considerable macroeconomic uncertainty and questions about any potential future stimulus funds that could help small businesses given the level of uncertainty. We will provide our outlook for the fiscal second quarter of one. As macro conditions stabilize, we'll provide a longer term outlook for our financial performance. For the second quarter of fiscal 2021, total revenue is expected to be in the range of forty six point five to forty seven point five million, made up of core revenue in the range of forty five point four to forty six point two million and revenue in the range of one point one to one point three million. Revenue assumes that the average Fed funds rate will continue to be approximately 25 basis points during the December quarter and that our yield will be in the range of 25 to 30 basis points. Looking ahead, due to the lack of that from the timing of interest rate reductions on our investment yields. We expect further declines in revenues over the next few quarters, assuming interest rates remain at today's level. Regarding our planned operating expenses, we will continue to invest in R&D hiring to support product development, work related to our new financial institution, partnerships and continued development of our payment products.
[00:23:10] The bank projects involve complex integrations with long lead times, and we will be increasing our R&D spend from the prior quarter to fulfill our bank partners needs. We will continue our disciplined approach with regards to sales and marketing investment. We will increase our investment in sales and marketing as opportunities and economics dictate. On the bottom line, we expect to report a non-GAAP net loss in the range of six point eight to five point eight billion and a non-GAAP loss of eight to seven cents on a per share basis based on a share count of approximately eighty one point two million basic weighted average shares for Q2. In addition, we expect stock based compensation expenses of approximately 11 to 12 million in Q2 of fiscal 2021 and capital expenditures for our new headquarters and other requirements to be approximately eight to nine million in Q2 of fiscal 2021. In closing on the guidance topic, we expect near-term economic uncertainty to persist. We're very excited about the long term opportunity and we will continue to invest and innovate to support As and BS while remaining diligent and agile about the need to respond quickly to changes in the macro environment. Now, Renee and I will open up the call for your questions.
[00:24:24] Operator, ladies and gentlemen, at this time, if you would like to ask a question, please, press star followed by one on your telephone keypad. Again, that is star one to ask a question. We will pause for just a moment to compile the Q&A roster. Your first question is on the line of Brad Mills with Bank of America.
[00:24:52] Great. Thanks so much, guys. Congratulations on a nice quarter. I wanted to ask about the transaction business. It looks like a nice move in to take. Great. You know, we calculated and you called out virtual card as an area of strength. I wanted to just ask about that. You know, it cross-border, I know is also ramping. I wanted to, you know, any color you can provide on on those to the offerings and how they track during the quarter.
[00:25:21] Thanks, Brad. Good to hear your voice. You know, a big part of the quarter for the transaction growth was the fact that TV just rebounded really nicely. The small businesses we talked about this last quarter, you know, are resilient. And, you know, we saw 31 percent year over year growth on the TV. And so given the monetization to card and international payments, we were able to obviously take advantage of those businesses to drive revenue growth in the transaction part. You know, in particular, one of the things that we have done on the virtual card business is we did talk. Aveling suppliers on our own and pulling that in-house, and we expected that would take us, you know, more time to kind of figure out exactly what we need to do. And we were able to pull that into this quarter. And we did see, you know, good growth from that. So, you know, we feel good about that part of the business on the international side. We mentioned this in the last quarter that we were going to be, you know, letting vendors that were international enter their own bank account information to identify that they wanted local currency versus U.S. dollars. And that has started to roll out. And, you know, the success there is that, you know, we have 137 countries that we make payments to and just around 100 now have vendors that are, you know, adding bank account information directly to so they can get local currency. So those things are, you know, what's driving the growth is something that we're happy about. We have a lot more to do when we look at the growth opportunities, you know, across international and CA, there's just lots more work for us to do and we're going to keep doing it.
[00:27:00] That's great. That's great, thanks, Rene. And then one more, if I may, just on that same topic on Cross Border, I think you were you were clear last quarter that you see over time the virtual card business potentially reaching five to 10 percent of transactions. Are there any targets or thoughts on where cross-border could ramp to over the longer term?
[00:27:18] There's two components to the cross-border payment, right? One is the dollars that are just flowing through our system. And then the second part is how much of that is going as a local currency union, eFax. And so I think the guidance that we provided is that we think the transaction percentage on the network, on the payment volume is somewhere between 10 and 20 percent. But that we also think and this is the more important driver of the revenue, that the long term opportunity is for us to get the tax revenue in the 40 to 50 percent range. Now, that's the long term. I think at the annual guidance that we gave last quarter was that we were right around 25 percent. So we have plenty of work to do to get there. And that's not something we see obviously in the next quarter, something that we're going to work towards.
[00:28:07] That's great, thanks so much, Renee. Thank you.
[00:28:12] Your next question comes from the line of Josh Beck with KeyBanc.
[00:28:18] Thank you, Jeanne, good to hear your voice as well. You know, I know it was a very challenging environment to come up with guidance and just kind of curious as you went through the quarter and maybe in particular the months. I'm just curious about maybe how the help of the SBA played out relative to your expectations and, you know, any any surprises out there.
[00:28:47] There are a couple of components that obviously drive that as there is new customer acquisition and there's the payment volume that goes across to the platform. And, you know, we did have a good, healthy ads in the quarter. And and we still think that's part of the carryover from the pandemic and the immediacy of people saying and now got to operate my business, you know, across, you know, the ether, if you will. And so, you know, the new revenue from those customers, you know, isn't as impactful. So it really is, you know, the TV rebounding that really drove the transaction revenue. And so what we saw was that I think with the opening up and unfortunately, you know, across the country, we also did see increased cases in the summer. But as the economy opened up, we did see people saying, OK, you know, the stimulus package kept me in business during the closed months and now I can kind of open up and find a way to make it work. And so, you know, we did see the rebound, that type of per transaction that's still lower than it was prior to the pain. But the overall TV rebounded. And so it was it was good to see. And I think on the in the August call, we'd started to see that, which is why we missed the message that there is resilience there. But it continued, obviously. And I would say, you know, we feel good about where business is now, though there is obviously a lot of uncertainty. And now with cases of cases at the highest level they've ever been, it's you know, it's hard to know what that means going into the winter months.
[00:30:17] Ok, that that's good to hear. Very helpful. I also wanted to ask about the instant transfer product. You've been in pilot mode for a couple of months. I know it's very early, but I'm just kind of curious about maybe where you could see that getting into the product portfolio, maybe what some of the escape early use cases that you are with, Steve.
[00:30:42] Yeah, our mission is to make it simple, to connect and do business, and that's why I started the company 14 years ago, was to focus on just really eliminating all the hassle that businesses have, whether it's tracking their documents, their workflow or their payments. And when we think about, you know, Internet, the instant payments, it's the opportunity for vendors, suppliers to get paid on the terms that they want to get paid. If they need the money today and they don't want to wait, then we want to enable that. And, you know, where we are at with it is making sure that we have a way to obviously support the rails. That was probably, you know, the beginning of the quarter. And then now we're in the phase of kind of rolling out and understanding, you know, how is it that suppliers want to use that? What are they willing to pay for that? What are all the different, you know, systems that we need to track to make sure that we're honoring our commitment to both sides? So it is early, but when I think about, you know, the long term goal of it is, you know, we're going to pay people via EPS, we're going to pay people via people via international wire the facts, and we're going to pay people the chance to transfer, which is the real time payments. And it's the the completeness of all those options that actually makes our platform so valuable. And something that, you know, we focus on first and foremost is eliminating paper and making payments electronic. And so I think the opportunity here is giving suppliers who are going to get, you know, a face payment or a check in a few days and a week or whenever. The opportunity to get that money today that's going to, you know, we think drive more happiness and satisfaction across the network and ultimately drive business results because there will be, you know, a business model attached to the payment since there is an opportunity for us to to take risk. And we're going to manage that risk appropriately, but also have a revenue model from it.
[00:32:34] Really helpful thing to do. Thank you. Just.
[00:32:39] Your next question is from the line of Brant Breslin with Piper Sandler.
[00:32:44] I thank you and good afternoon will stick on the topic of instant transfer, ask one question and one follow up on the instant transfer kind of opportunity. Renee, you talked about not using the last two and a half million to supplier network. More broadly, is the primary way going to be a essentially the supplier will pay you in order to kind of get that, you know, real time payment? And so they're willing to pay a slight fee? Or is there some sort of, like, subscription angle here? Just trying to think through the mind of the specific monetization of those two and a half million suppliers into the buyers have to pay as well any any additional color on kind of how how you're monetizing that would be helpful.
[00:33:32] Yeah, the way the business works is very we collect money into our account and then we pay out to the suppliers on the app side, if it was receivables, that would be in our account and then out to our customer. But let's just take the payables example. So once the money comes in and they make a payment decision, there is a small transaction fee, 29 cents a dollar, 49. What we will be doing on real time payments on a transaction, for example, we will let the supplier know that a payment is coming. It's scheduled and it will arrive on a specific day sometime the next week. Depends on the transaction. What you know, what date is that? We get it and the price of all those things. But we manage all that risk to make sure that we're going to be whole on the funds. And so when they find out that, OK, it's coming, let's say, some initial payment on today, let's say it's Thursday, and we tell them that you're going to get paid in your account next Wednesday if you'd like to have it today. There is an ad model that we have built in that we're building it and learning about. Right. And so if you look at, you know, the other folks that are doing instant payments, you know, whether it's a square or a PayPal's Venmo, there is typically kind of a risk fee, if you will, that goes to the supplier if they want the money now. And that's the way we're thinking about it. But like, you know, it is early days for us on this. We also are very focused on making sure that this increases the simplicity across our platform. And so it is early for us to say exactly what the business model is. But we are going to focus on driving value for the business because of the speed and ease that we're able to do with money.
[00:35:15] The money right away certainly makes a lot of sense and very, very helpful color there follow up for me, I guess, John, maybe is just non-linearity. You talked about the small business recovery is reaccelerated the 31 percent month over month that every month get better or did it snap back in kind of July and then stabilized? Just trying to understand how much volatility month to month you're still seeing given, you know, we're still kind of in a global pandemic. So any color there you could provide on just the linearity month to month you're seeing on the volume recovery here.
[00:35:55] Yeah, good question. There's nothing that jumps out at us. It's a it's, as you know, a pretty stable business with the vast majority of transactions that we execute on behalf of customers being repeat transactions. So they're running their business. They're doing the same kind of things every month. We did see improvements in the number of transactions. And you can see we went from kind of one percent, you know, year over year growth last quarter when we felt like there certainly this pandemic was having an impact on our customers and were scaling back to be held a little bit better. But both those metrics improved this quarter, which I think is just a sign to us of improving activity that was generally throughout the quarter. There is a small bit of nuance to the transactions based on, you know, the business days in in a in a month or so. You know, we tend not to get, you know, too focused on month to month changes. And there was no, no, no material throughout the quarter. Just generally things going in the right direction.
[00:37:01] Kind of super helpful. Thank you. Thank you.
[00:37:06] Your next question is from the line of Brian Schwartz with Oppenheimer and Company.
[00:37:12] Yeah, hi. Thanks for taking my questions this afternoon, John and Renee. Renee, start start with you. I just wanted to follow up maybe more near-term on what you're seeing on the demand environment you talked about over the medium term. You know, it clearly seems that the modernization for digitizing payments is becoming a bigger priority here. But how about right now? And, you know, you know, how is that modernization being prioritized, say, relative to, you know, PreK over the past years? And then I have a follow up.
[00:37:52] Brian, good to hear your voice. So with the with a pandemic, like I said before, there was definitely an initial kind of, you know, just desire, need, capability that needed to happen for businesses. And so we did see increased demand, you know, in Q3, Q4 and in Q1 on on the unit growth. When we when we look forward in general, I would say that we would we've seen kind of, you know, increase conversion across, you know, our customer base, but lower that softer demand at the top of the funnel. And so, you know, I think that's, you know, part of this uncertainty that everybody's having in the economy right now is just understanding are we really going back to work for good or is the Kovik case increase going to force more shutdowns and people not wanting to kind of, you know, change too much when they're they're dealing with, you know, that uncertainty? We do think that the increase in conversion is an example of how, you know, this is a tailwind for for us. You know, long term, it's going to continue to help us, you know, get more and more customers. And so, you know, when we look at, you know, demand over the next few quarters, we're anticipating, you know, customer growth just below, you know, 25 percent year over year. And that's, you know, because of a number of things that we think, you know, are some are good and some, you know, are a little bit softer. And it's all something that we are, you know, obviously focused on every day.
[00:39:19] Thank you, Renee. I want to follow up question on that commentary, that 25 percent growth. Is that your assumption? You know, assuming that we do get some stimulus in the early part of next year or or just assuming no stimulus at this point?
[00:39:35] Yeah, I'll take that, Bryan. Well, I don't think we you know, we have specific assumptions around the direct impact of stimulus that's sort of beyond what what we can model. I think there's just a number of factors in the near term that lead to our expectations for slightly lower, you know, net new customer adds, including our increasing focus on on larger customers, where we have better unit economics and in larger lifetime value, we tend to get fewer of those. But financially, they're they're beneficial for us as well as the investments that we're making in and supporting our new financial institution partners. We know that those aren't really going to ramp for a few quarters. So there's there's sort of a you know, in between now and there, we have, you know, slightly lower expectations than we've had, particularly coming out of Q4 where we saw a pretty significant, you know, pretty significant spike because of the early days of the pandemic. And just generally speaking, with our strategy for monetization, which is increasingly leaning towards transactions, it's probably fair to say that just the absolute customer numbers on a quarterly basis probably become slightly less meaningful.
[00:40:52] That's really helpful, John. One question I wanted to just ask you on. On margins, on operating margins. I guess if I look at the last two quarters there, you know, the improvement is up about three points compared to the same period from the prior year. And that's with much less of that flow revenue that's in, you know, essentially 100 percent margin. So, you know, as we think about the margin structure of the business heading into the next calendar year here, you know, how should we think about the potential to continually improve the margins on a year over year basis? You know, can you talk about the puts and takes that that we could be thinking about?
[00:41:32] Thank you, sir. So we talked about this a little bit on on our last call. Our bias continues to be to invest for long term growth. We were a little bit cautious in our fourth quarter just given the early stages of the pandemic. As you can see in our in our OpEx trends, quarter to quarter, we ramped investment in R&D as we as we said we would in support of a financial institution, partners. And we're continuing to look at opportunities to increase investment in sales and marketing. So I think it's fair to say that we're we're going to invest where we where we think the return is good and where it helps us with long term sustainable growth. So and that may may well translate into an increased investment level and less, you know, improvement in operating margin in the near term. But we're obviously very confident that long term we will transition to, you know, a profitable business.
[00:42:35] Your next question is from the line of Samad Samana with Jefferies.
[00:42:40] Hi, this is Nathan Marin on for Surmont, thanks for taking questions. So can you talk a little bit more about your first cardplayer efforts in-house? But what are you actually doing to get these suppliers set up on your card program? And how far along are you in these efforts? And then can this ultimately lead you to getting your more long term targets hard, faster?
[00:43:04] I think the effort that we did first starts with A.I., so, you know, we have a massive fire network, two and a half million, and we're using machine learning to analyze the data and match that with the MasterCard data network that is accepting cards that we process our rails through. And so the first part was, let's make sure that we understand and use A.I. But then quickly, we wanted to pair that with human involvement to do some calling out to the suppliers to get them onboard and help them understand what the process is to handle the transactions from us. And so it is that kind of that teamwork that happens very quickly between the A.I. matching that our team is able to do and the supplier enablement with people that is allowing us that allows us to actually bring supplier, you know, engagement at a higher level than we expected. And I think, you know, there is it is to your question, like, is this part of how we get to the long term model? It is absolutely part of how we get the long term model. And I think right now what we're saying is what we were able to do is bring in what we saw happening. You know, we were just starting this what we thought was going to happen in a quarter. We able to bring that into the current quarter. And so, you know, now we have to go back and figure out what else are we going to do to kind of continue that growth. And there's lots of ideas, but all of those get tested and then before we invest aggressively behind it. So, you know, we feel good about, you know, what we've learned and the opportunity to, again, the A.I. capabilities and the data that we have with the human touch, you know, connecting with the suppliers real time.
[00:44:39] Ok. Thank you. And then on the relationship, how's the new agreement progressing here? Any initial feedback to provide on the transition up market towards the KBIO advanced customers?
[00:44:53] Yes, we're excited. We know they're excited. We know this is one of the top five bets that the company has to focus on advance. You know, they picked a handful of partners to go to market with. We've just kind of kicked this off. You know, it is on the App Store as one of the preferred partners for advance. So there is, you know, customer activity. But we're just in the beginning of understanding with Intuit about how we're going to go to market. You know, what are the right touch points maybe in the product, the right touch points outside of probably the right sales touch points and their company and our company. There's just a lot of work that has to get done. And, you know, I would say the most important thing is the excitement that both teams have about the opportunity in front of us. And, you know, it really comes down to kind of the monetization opportunity and the fact that these businesses need help. I mean, we have just a data point that might be helpful, because Advance has been out there for a couple of years and we have multiple channels outside of exactly how we you know, we're working with Intuit on this particular partnership. We have thousands of customers that are on advanced using our platform. And that's how we're able to say with confidence that the market is significantly higher. And it is part of that customer learning and history that allows us to work with Intuit on figuring out how do we actually make the most of this opportunity. This is a you know, one of the big that said Intuit has it's not going to be a six month that this is a multi-year bet that they have that we have around how to actually grow the Quickflix online advanced customer base from 75000 to something much bigger than that. And this is something that we're excited about.
[00:46:31] Thanks for that. Thank you.
[00:46:35] Your next question is from the line of Scott Berg with Needham.
[00:46:41] Kiran and John, congrats on a great quarter and thanks for taking my question. I actually only have one, but Renee, I wanted to go kind of revisit your comment on or maybe mischance comment on customer growth normalizing and maybe slowing a little bit the next couple quarters until you start ramping customers from the new relationships. I guess as you look at the implementations that are now complete with those new relationships like Wells is what is your expectation around customer additions on the new F.I. relationships versus the existing ones? Maybe it's Bank of America or Morgan Chase that you've had. Well, thank you, Scott.
[00:47:19] The five relationships obviously depend on their customer base and and kind of the target customer they have. And so, you know, the example with Wells is it is their commercial customers. So this is their their larger customers. This is the 10 to hundred million dollar revenue range customers. You know, KeyBank is both the small business and the commercial is primarily the existing business we have with the top banks in the country is the commercial. So it's not a lot of units that you're going to see through. It does help the TV. And so, you know, as we look at the TV growth year over year, that's something that we think is going to be important for us to continue to obviously have success. The you know, what I can tell you is that, again, the early, early days, you know, with any of the bank partners, it's all about just like with Intuit figuring out the right go to market plan, the right strategy. I know that the Wells team, for example, is excited about what they've been able to see from their customer base so far. But at this point, it's still early for us to be kind of projecting some numbers that look like because there's obviously a big customer base and we can, you know, figure that out as we roll.
[00:48:29] I apologies and if I were for that, Rene, you know, given the complexity of the well's relationship, it has some differences and it wasn't just having PR as a component of the platform that those customers can adopt. Do you think that changes kind of the viewpoint on those customer adoption areas? Because it is a slightly different maybe a different product offering at that point versus someone just finally outside of the solution?
[00:48:58] Yeah, I think, you know, offering a complete package of both apps are does create a different different sales message. And, you know, we do have, you know, a partner, you know, a large bank. And I can't remember if we're allowed to say their name. So I want at this point, but it's a large bank that does the both app and they are and they have great success leading with. And so, you know, we look to that. We share that learning. We help others understand how you can lead with both. And we think that's, you know, an opportunity. So I think, Scott, you're right. Think that that's an opportunity for us. And, you know, when we look at the you know, the top three bank that we are, we're in the process of rolling out into the small business space as well as obviously we have the commercial, you know, that opportunity to kind of serve both appraisers. It's going to be a real opportunity for us.
[00:49:50] Great, congrats on a great quarter again. Thank you.
[00:49:52] Thank you, Scott.
[00:49:55] Your next question is from the line of Chris Merwin with the Goldman Sachs.
[00:50:01] Hi, thank you for taking my question, and I just wanted to ask about the mid-market sales force hiring plans and that they should build out a broader suite of independent products and improve the functionality of the platform. I'm sure it's more and more relevant to larger customers. Anything you can share about hiring or doing there to accelerate the direct sales outreach to some of your customers? Thanks.
[00:50:28] Yeah, the first hiring, you know, that I did was we mentioned the CIA and that was in part to really create, you know, alignment across all the different ways we were measuring and acquiring customers. So, you know, marketing, sales and partnerships and and the focus there was to be able to understand the trade offs that naturally inherently happen across each acquisition vehicles that we have. And, you know, I think as we as time comes up to speed and ends up, you know, coming up with his game plan, I think part of that will be an opportunity to say how do we invest more in any of those, you know, channels to drive the growth that we we want to see. So, you know, at this point, you know, what we've seen with mid-market is it continues to resonate well with customers and to invest and and lead growth as well as sales growth. And we feel good about the opportunity. There is real the complexity is is definitely real for businesses without our solution and the simplicity that we have across every type of armored vehicle out there really does resonate with customers.
[00:51:34] Ok, great. Thanks so much. That's all for me.
[00:51:36] OK, thanks, Chris.
[00:51:39] Your next question is from the line of kids and healthcare with autonomous research.
[00:51:46] Hey, Renee and John, good afternoon. Hope you're okay. Well, thanks for taking my question. I was just wondering if you could talk about the virtual card acceptance. Are you seeing greater virtual card adoption across certain types of suppliers, either by size or industry, or are there certain suppliers where you're seeing a lower acceptance in terms of that virtual card?
[00:52:11] We are I would say, you know, still, you know, learning on that front, if you will, right? I mean, that's part of the automation and the supplier enablement that we just talked about, the teams or that's why we wanted to bring it in-house, because there is a you know, I guess, you know, connective tissue that needs to happen between understanding our data and connecting with suppliers, understanding what suppliers want. And we want to be in the position to kind of, you know, obviously accelerate the business and deliver delightful experience for both supplier. So, you know, at this point, we've not seen anything that would say, oh, we should not talk to these suppliers or we should talk to these suppliers. You know, we are seeing that suppliers want to get paid as quickly as and when you make it easy for them, they're comfortable doing that. And, you know, there's opportunities for us to continue to enhance that is now there are some suppliers that, you know, from time to time will say that's not the right fit for them. And so that's that's OK. And that's that's why we have these other payment vehicles that we do.
[00:53:14] Thank you, that's really helpful. And then just for my follow up, I think you mentioned that you're going to see your quick books, simple bill pay customers. So it's curious why Bill Dotcom wouldn't be able to go up market with Intuit while maintaining the historical level of simple bill paying that adds any any color. That would be really helpful. Thanks.
[00:53:37] Yeah, the arm, yeah, understanding in our experience with the simple delight customers that these are the micro businesses, they're rather small, a few transactions, they're not paying subscription revenue. And as you know, our business is the kind of combination of revenue and transaction revenue that really drives our success. And so having a business model, you know, that was that had us less focus on, you know, being there versus the online and as customers as we've, you know, managed to acquire those customers. You know, outside of the specific partnership we just started, we saw that the revenue opportunity, the business opportunity was significant and much stronger than on the simple bill. So that's that's why we focus on that with Intuit. That's why we, you know, spent our time talking with them, helping them understand that. And they saw it, too. I mean, they didn't need us. They could see it in their data as well. So I think it's really just what's the right thing for the business to grow the business? And we think this is obviously the best growth opportunity is to go after the advanced customers.
[00:54:43] Really helpful. Thanks. Thank you.
[00:54:48] Your next question is from the line of Bob Napoli with William Blair.
[00:54:53] Thank you. Thanks. Good evening. John Timoney, nice quarter. Just wanted to dig a little deeper into the distribution success, like the accounting firm, the mix. Did you see anything different in the mix of customer ads today? Did you get more traction from their size this quarter? Will we see that, you know, further down the line?
[00:55:18] Yeah, you know what we know, what we saw was, you know, accounts were obviously busy with the tax deadline in July, but then they kind of came back. And one of the things I think we mentioned in the press release was just as you know, some accounts actually get involved with wealth management. And so we saw some get up tick, you know, from that part of the business as well. So I would say that there was no one channel that kind of came in strong. You know, I do think accounts were the reason I bring up the accounts is because we mentioned that they were going to be a little bit slow in July and they were. But then they you know, they came back and had a good quarter overall. So, you know, lots of good demand across the quarter, across all of the channels and nothing specific. The kind of call out and on the on the new banks, it is, you know, kind of early, right? I mean, Wells Fargo is now in pilot and Key Bank, just went live this week in Geet. So it's you know, I think I think we'll know more obviously in the next quarter to be able to tell you direction about how we're thinking about it. And then anything on the distribution strategy, anything new. I mean, it seems to me like like partnerships with some of the bank tech companies, like a cheetah or an alchemy or FISA or tighter. You know, it seems like your product would fit really well with their corporate customers. And it seems like yeah, yeah, there's a lot of opportunities on distribution, nothing that, you know, we're going to, you know, share today. But what I can say is that first and foremost, important thing for us to do in the company is to focus on, you know, the incredible distribution opportunities that we have with Wells Fargo, Key Bank. And and, you know, the third you know, the largest small business bank in the country, one of the top three small businesses. The country getting that right. Like, that's all new, obviously, our existing part. So I think we have a lot of distribution, you know, I guess. Well, to go to and and I'm asking the team to focus on, you know, that we are obviously talking to plenty of people that nothing that we can share at this point.
[00:57:24] And then is there anything. Last question on the product pipeline. I know you talked about supply chain finance at one point. Was there anything? You know what? I'm obviously working on a number of different things. I was wondering if you could give us any color on. What's most important, this idea I talked about tonight, all right.
[00:57:45] I mean, you know, one of the things that I was really psyched about in this quarter is that we cross 100000 customers. And, you know, that is a significant milestone. And it's something that, you know, I know it's an elite group of businesses that serve that many other small businesses. And so in our focus and you know this, the market is just massive in front of us. Our focus is how do we get from 100000 to something much bigger? And so the distribution deals that we have, which we just talked about, is a big part of that. And another big part of that is the simplicity across the platform. And so, you know, the biggest thing we can do on our product is to continue to simplify the experience from beginning to end, from buyers to suppliers. And we are doing that. There's a number of things that actually the instant transfer, the real time payments for doing is a really good example of simplifying the experience for the supplier. And so we have lots of things that we're doing on that front. There are new product opportunities that we are looking at, but it's nothing to disclose at this time.
[00:58:43] Thank you. Really appreciate it. Thank you, Bob.
[00:58:48] Your next question is from the line of Matt VanVleet with BTIG.
[00:58:54] Hi, guys, thanks for taking my question. The struggle in the quarter, I guess, is kind of a follow up to the last couple of questions. But as you think about, you know, pursuing and getting into discussions with other financial institutions and you know what what that might mean, what's kind of the longer term mindset around, you know, looking to to broaden the horizons of the institutions you're working with versus investing in, you know, deeper capabilities and working more closely with the three big ones in particular that you talked about in expanding there. And just kind of the broader mindset around that, you know.
[00:59:33] There is a tremendous amount of opportunity with financial institutions and all the and that goes both for adding more banks, right? You know, we now have five of the top 10 and there's an opportunity for us to continue to get more of the top 10, as well as to get other super regional and regional banks. And so there's lots of opportunity to bring more banks on and there's lots of opportunity with our existing bank partners to extend into other parts of their business, you know, the small business side of the bank. And so I think the you know, the really powerful part of the model that we have is that, you know, we go in and we we do what we say we're going to do with our bank partners. And then they have an opportunity to say, let's do more together. And that's that's what we've seen in general and something that we're, you know, going to keep doing. So I can't say that we're going to just do one or the other is that both need to have a great product strategy with a lot of simplicity, because, you know, this is going into the you know, the early majority, majority part of the market. And it's just we recognize and understand it's going to be a little bit different than what it was to get here.
[01:00:41] And then looking at the overall product portfolio, what you might do, you know, whether that's mimicking what some some of the competitors in the enterprise are doing for a broader set of capabilities with their customers. But what's what's kind of the mindset between build versus buy and kind of what the overall M&A pipeline might look like? Understanding that, you know, there's a little more cash on the balance sheet because there was not stronger.
[01:01:11] Yeah, and it's not just the cash rate, one of the reasons that I wanted to go public was to have a currency in addition to the capital, to be able to be opportunistic about how we could extend the platform. And we've got a very, you know, strong platform that was purpose built from the ground up to serve and automate financial processes for SMEs. And, you know, those processes that we built from the ground up or AP and are now there's opportunities to extend that platform and add other things onto the platform. And were you know, we definitely are aware of lots of opportunities. We would say that kind of expense spend management is an area that we think is interesting to think about. We would say that HRR and payroll's an area that could be interesting to think about. You know, we would say that, you know, there's an opportunity for us to, you know, continue to look at, you know, working capital efficiency for snob's. And so, you know, none of that is is something that that we're going to do right now. But when you ask the broad question about how do you think about it, I would probably say right now we're you know, we're going to stay focused on how do we extend the platform of our most closely and go from there.
[01:02:25] We have time for one more analyst, your final question from the line of Jeff Kentwell with Guggenheim.
[01:02:33] You've got to take my question on this here, and thanks for allowing me to join this, cause I appreciate it. On the political front, a question from earlier and ask you about what you're seeing with your customer base and payment transactions. So right now you're at one hundred and 3000 customers is almost 140000 customers transactions with six point five million. Those numbers were ahead of where we were for the quarter. So you're growing faster and transactions are expanding nicely. So I just wanted to ask you if we can drill down a little bit on the characteristics of your customer base right now. You expand very quickly. And if you're broadening out your product line up, are you seeing new customers that are more likely to be users of these newer products, that virtual card or cross-border? You know, your new ads, the kind that will will lean into these higher value products, I guess, is one way of asking. Can you just talk a little bit about that? Because that will help us get a better sense of how to get out, you know, call it 12 to 18 months from now. Thanks very much.
[01:03:33] Thank you. Thanks, Jeff. The on the virtual car business, just for a little bit of clarity at this point, we do all the matching and we out a payment to a car supplier that accepts a virtual card so our customers don't have a choice in that matter. We go to the fastest method of payment so that our customers can know that their vendor supplier has been paid quickly and efficiently and it's reconciled. So, so on. That customers that's not something that is that they're making a decision on the on the international payments. We have seen, I would say, in the mid-market companies that we that we bring on that international payments can be something that, you know, they're interested in and want to make sure that we have a solution for. And, you know, our our simplicity and in the cleanliness of how we provide that solution is, you know, sometimes a reason as to why we acquire merchant customer. So all in all, you know, I would say what we already knew from our business before we entered either business was that the transactions across our platform, there were international transactions that businesses were doing, that they were going outside to back on, and there were virtual card transactions that were happening that could have happened or aren't doing. And so, you know, we have, you know, a real, you know, opportunity to kind of enable that, you know, for, you know, our our customers. And what we've seen is that that's it's not something it ends up being additive when they're, you know, especially international payments when they're considering our solution.
[01:05:14] Appreciate. And if I could ask you a quick follow up on, you know, you have been in this business, you know, for for a long time. And I guess the question is, you know, as we're watching, you know, this will unfold with small businesses. You know what what can you leave us with in terms of what's new? What are small businesses doing right now that's different or new? Or maybe it's just a little change in the behavior, you know, that will help us understand customer, you know, customer growth over time and why will flow through to your platform. I'm just curious if you can kind of give us the broad, you know, the broad picture of what you're seeing over the past three to six months. You know, I hear that's just sort of emerging from the lockdown's and and trying to, you know, go through this all pinned on it. Thanks much.
[01:06:02] Yeah, yeah. It's a great question. I think one of the things that that we all have, you know, come to appreciate as much as we want to be in the office with people is the efficiency and the ability to be remote. And so what's an example? What's new? The SNB is need is, you know, they needed ability to do more mobile stuff. We talked about the mobile data on, you know, in my script where we talked about that, you know, great growth in the last year. And some of that is us doing great product placement and really encouraging suppliers to come on board and be able to do a mobile transaction. But we think when you ask that question, that's the first thing that came to mind, is that, you know, as we come out, more and more is going to get done from a remote business perspective. And mobile will be continue to be a part of that and a stronger part of that.
[01:06:50] Okay.
[01:06:55] Well, I just want to say thanks, everyone, for joining today's call, and we really appreciate your ongoing support as shareholders and stakeholders in our business. So thank you.
[01:07:06] Businesses to build dotcoms, first quarter of fiscal 2021 earnings conference call, thank you for your participation. You may now disconnect.