mCloud Technologies Corp

XTSX:MCLD

Earnings Call Transcript 2022-Q3

[Operator]

Good morning, everyone, and welcome to the conference call. I will now hand the call over to Wayne Andrews.

[Wayne Andrews, executive]

Good morning, and welcome to the mCloud Technologies' Fiscal 2022 Third Quarter Earnings Conference Call. Today, the company will discuss the unaudited results for the 3 months ended September 30, 2022. Presenting from mCloud are Russ McMeekin, our Chief Executive Officer; and Chantal Schutz, our Chief Financial Officer. Before we proceed further, please note that remarks made on this conference call may contain forward-looking statements about mCloud Technologies' current and future plans, expectations, intentions, results, levels of activity, performance, goals, achievements or any other future events or developments. Forward-looking statements are based on information currently available to management and on investments and assumptions based on factors that management believes are appropriate and reasonable in the circumstances. However, there can be no assurance that such estimates and assumptions will prove to be correct.Many factors could cause actual results, levels of activity, performance, achievements, future events or developments to differ materially from those expressed or implied by the forward-looking statements. As a result, mCloud Technologies cannot guarantee that any forward-looking statements will materialize, and you are cautioned not to place undue reliance on any forward-looking statements. Except as may be required by law, mCloud Technologies has no obligation to update or revise any forward-looking statements as a result of new information, future events or otherwise. For additional information on these assumptions and risks, please consult the cautionary statement regarding forward-looking information contained in the company's most recent MD&A available on sedar.com.At this time, I'll turn the call over to Russ McMeekin, Chief Executive Officer of mCloud. Go ahead, Russ.

[Russel McMeekin, executive]

Thank you, Wayne. Good morning, everyone back in North America. I'm here in Dammam, Saudi Arabia it's night time here, a lot of actions going on here in Saudi. I may kick off the call here with some key updates from the last call. First and foremost, what we've been really busy on since the last call, and that is rationalizing things within inside the company and integrating to the Google Cloud for things that are customer-facing technology components. And I'll get into a lot more detail on that as well as go through the various geographies and applications of focus and the progress we've made. The key components of AssetCare migration to Google Cloud, obviously, to the cloud, integration with Google Earth Engine, we featured it at the COP27 -- still featured in COP27 here this week in Aramco and many parts of Saudi Arabia, I've been here for 2 weeks now. It is very well received, being able to get aerial data connected to AI, connected to 3D assets and be able to go from aerial view, call from [indiscernible] to tackle the methane problem that is a big ambitions here in the Kingdom. And then last but not least, leveraging the natural AI engines of Google so that we can put all this data out into mobile wearable devices so that we can take action out in the field. The adoption here are wearable devices is probably further ahead than most parts of the industrial world for many reasons.So these applications will fit very well -- do fit very well on the Google platform for customers like Aramco and others. Thirdly, as I mentioned, COP27 was an opportunity for us to highlight some of the joint things we did with Google that was very well received. We were very fortunate that our new director, she's in fact in COP27, she attended with a number of high-ranking officials from Saudi Arabia. And so the feedback has been phenomenal. And so having that Google, Aramco, having Dina on the team and representing us all at COP27 has been super.Some of the specific items around the Google strategy. Obviously, I just touched on the technology component. The next part is the go-to-market. So in every region here in Saudi, in the U.S., in Canada and U.K., we have not only regional approaches, but we have specific named accounts together. We're chasing accounts. There are big names. Obviously, Aramco is a big one. Obviously, Mercedes is a big one. Big auto dealers like Google is bringing to the mix, but there are others.So there are large customers, mid-sized customers, those who fit that profile that Google and we are going after around sustainability and the applications we're bringing to market. There is also a marketing machine, an amazing marketing machine at Google. We were reasonably well prepared for COP27. So we've got some things done, but we're going to be much better prepared in 2023 for some of these bigger events where we jointly market and the marketing machine at Google is amazing. So we intend to leverage that also in automotives with EV. It's a big push of theirs marketing there as well as other parts of sustainability.Next component is customer contracts, billings and collections that will be wherever practical, and that's pretty much everywhere. Customer contracts, billings and collections will be done through Google, through that channel. Here in Saudi Arabia that fits perfectly. And so that has a lot of efficiencies and a number of good reasons for doing that. And at the last call, I discussed how we were going to be launching things here in the Kingdom. I didn't say what it was, but now we now have a pretty good -- I think on our website, our team has put up a brief demo of what we've been showing here that shows, again, from [indiscernible] concepts or not concepts actually, we're actually connected to real assets, doing real things. So that's quite exciting.The 3 areas of focus that we have, obviously, oil and gas, where we look at methane from an aerial perspective, where we have 3D digital twins of the assets, we can get right down, we can do a digital LDAR, which is leak detection and repair, which is a standard in oil and gas adopted globally. And there's a lot of activity there and having that fully digitized. If you do that, by definition, you will greatly reduce methane in the oil and gas industry. The second area of focus is around wind energy and what we do there specifically is we use the weather data from Google Earth. We feed the AI models. This was tried by others, by operators in Europe before we came on the scene. We've since adopted some of those concepts. We have different models on how we look at each of the power curves of these various wind turbine types.So the combination of what we get from Google Earth, the models we have already. Obviously, we do blade inspection, that data also goes into the AI model. We absolutely believe between we and Google, that is -- there's no other solution like it for optimizing win. And when you have 2, 3 megawatt wind turbines, if you make 1% or 2% changes in capacity factor, that is a significant amount of kilowatt hours per day that we can tackle with this combined application. And third is around commercial buildings, those who have solar on top of them, which is our EV customers and look at Bank of America, they may not have EV, but they certainly have solar.If you have radiant models from Google Earth tied to our AI models, you can, first of all, predict when to optimally produce solar power, if we're doing what we're doing in EV, and that is balancing from the grid versus storage versus from solar production, you're able to optimize that. And then if you're getting credit you can take true radiant, be able to convert that to what it should have been in terms of solar produced versus purchase from the grid for audit purposes. So those are the 3 big apps that we're driving with Google. The customers that we've presented this to, these are big, big customer brands, very well received, and we intend to scale this globally and be a pure-play SaaS company with this.Those of you who have the slides or cannot go to our website and see the demo, you can see you at COP27 again, you see the aerial images. There's data that goes into Google Cloud that shows your carbon monoxide that shows your methane, it's color-coded. You can determine in real-time where the problem sites are. You take it to the next level, and that is you get into the 3D digital twin, obviously, it implies that you're a customer of mCloud that has a 3D digital model that drives a lot of demand for wanting to have 3D digital models because it puts a lot of efficiencies around being able to tag and track for methane purposes, which is becoming more and more mandated. It's certainly being mandated here in the Kingdom. And a lot of these asset owners or operators here are reporting monthly LDAR, which in most parts of the world are doing it annually. So that is going to be totally automated, that drives a lot of demand for us. But the focus here is to be able to report back to the central government, central people who want to have the before and after in terms of methane mitigation and leak reduction. These create digital reports or accurate reports that are very quick and easy to create.Again, I mentioned in my opening remarks that Dina al-Nahdi joined the Board of Directors. She's a highly regarded person here in the Kingdom. She advises, I think, a minister that a lot of you guys on the call probably know about, Prince Abdulaziz bin Salman, unfortunately know him for not wanting to produce more oil to satisfy the world wishes around oil production, but he's also very keen on sustainable oil. He's very big on decarbonizing oil production and Dina is a key adviser in that ministry. He's a very, very wonderful guy. His team are very, very smart, and they drive a lot of the policies here in the Kingdom. So we come, not only with her being extremely brilliant, well-educated and well connected here, but she also has a lot of influence on policymaking and adoption here in the Kingdom. So having her on our Board is just absolutely a great privilege, and we're very excited and working closely with -- she's pretty fun actually.So on that note, I'm going to turn it over to another fun person, that's Chantal. Turn it over to you.

[Chantal Schutz, executive]

Thanks so much, Russ and just a really warm welcome to Dina. It is a pleasure to have her on our Board and also thanks to everyone who was here to join us this morning. As highlighted in our earnings press release, we did note a decline in our Q3 revenue of this year to $2.9 million from $7.4 million in the same period last year. This decline was highly attributable to 2 very specific things: The first of those are actions we took in Q3 to rationalize the business; and our pause in activities to allow for the integration efforts and various activities with Google Cloud to become our primary delivery platform. The second item I wanted to discuss here was the completion of the Agnity transaction on July 29, that was announced on August 2. We draw readers of the financial statements to Note 15, the deconsolidation of subsidiary included in our other income on the face of the P&L for the period is $3.4 million related to the fair value adjustment of that royalty receivable, very specific to Agnity. During this quarter, the company took all the necessary steps to exit our Technical Project Services to focus entirely on the sale of AssetCare, a lot of that Russ has explained in his talk so far this morning. Additionally, we've had a variety of low-value contracts that we decided to either retire or not renew as we carry forward with our new strategy. We do have an expected 25% plus improvement to our cost structure. Those will begin to materialize in Q4. Certain measures that we've already untaken in Q3 included headcount reduction, I would say, approximately 20% on office-based rationalization and sunsetting of legacy space as well as the sunsetting of legacy non-Google technical infrastructure.In particular, included in our Q3 salaries, wages and benefits line is $1 million in costs related to headcount reductions that will bring our quarter 3 2022 and quarter 3 2021, more aligned with each other. Additionally, as a result of our decision to rationalize our office space, we've taken a $2.1 million charge for impairment related to our Calgary, Edmonton and Vancouver offices. This allows us to rightsize the headcount while still preserving a world-class customer and technology center for this market. These are both onetime charges that we don't expect to see again in future periods. And in regards to our measures in sunsetting of non-Google technical infrastructure, there's a reduction in R&D of approximately $300,000 as well as some modest cost reductions in our cost of goods sold.I will now turn the call back to Russ.

[Russel McMeekin, executive]

Thanks, Chantal. So the last part of the presentation here will be to walk you through region-by-region activities that are going on, specifically with Google. And then I received quite a few questions by e-mail and by text and so on. So I've taken kind of a cluster of them and put them together in -- go for about 10 questions here that I will address that cover most of what I received here in the last week and then the last couple of hours. So I'll address those here in my remarks. So now looking at the regions in the U.S., work is underway to all the auto dealer contracts to have them -- and I don't think we've had any push back on having all those contracts to be on Google -- in the Google marketplace on Google contract paper. The strength here, one is Google looks like the automotive space as very strategic. They've been selling Workspace -- Google Workspace into that market. you probably can go and look and see that they've signed some very large deals with the largest North American auto producers -- automakers, all around EV or a lot of it around EV. So that's a very key focus area. Before we were very focused on New York State, in California because we like the low-hanging incentives. But with Google, we're going to look way beyond just those 2 states because it's not just from their perspective, incentive-driven, but selling SaaS, selling cloud and getting all the benefits of all the applications we can provide. So a lot of upselling base as well on top of just simply doing EV optimization.Carbon Royalty, we have a great working relationship with them. We're going to continue to leverage that from a trading of carbon credits as those are accumulated. We are going to -- we are working closely with Google to make sure that inside of AssetCare, we have all the tracking tools to automate all these things. And I'm learning here in Saudi, not only from an EV perspective, but from an oil and gas perspective, the tools we're looking for are very common. So we're going to be able to bring that to market as one common carbon tracking for offset trading purposes. So that relationship with Carbon Royalty will move more strategic to tracking these things, trading these things, using the Google platform to be able to have an audit trail and move out of just pure or not purely, but of being a heavy-duty financing arm, we'll buy out over time in the next several quarters, buy out the -- using the contracts to repay them what we borrowed from them to get these early sites up and running. And that will all be bundled together as part of our strategic growth forward plan.In Canada, we have great customer position with a lot of great operators in Alberta, in Northern BC. We're going to leverage that. Google has got a nice -- actually literally 2 blocks from our office operation in Calgary. We want to use that working together to go after. We have about a dozen named accounts that we have very good relationship, and they have very good relationship. They're primarily in oil and gas. We're going to use the sustainability and methane tracking versus back office functions as our primary push. Early customer reception has been very good, and we'll be talking a lot more about that in future calls.Saudi Arabia, I think I've kind of said it in my opening remarks, going back to where this all started in July of 2021, the introduction of mCloud meet Google for sustainability and vice versa started here in the Kingdom back in July 2021. So Saudi has been an early adopter of this concept. They came up with a lot of very strategic things around Google Earth data so that we could start doing some things here in advance of Google Cloud having even being operational here in the Kingdom. So strategically, we're doing a lot of the validation of these Google mCloud things here in Kingdom Saudi Arabia. So that's well received here. They feel ownership from the strategy. It's also very well received. It's a massive market. So that's quite well.U.K. and Europe, Mercedes-Benz is our big -- we're going live here in the fourth quarter at Brackley. There's a lot of solar capability going in at Bradley. They see Google Earth and Google Cloud as being strategic and making sure we optimize that. There's a significant amount of EV going in there. So it's a massive reference center in the U.K. and then into Europe. Asia Pacific, we're going to be very targeted in Japan. I don't want to divulge at this point who that is, but it's a major or the largest operators in Japan. Similarly, in Malaysia, the national oil company, Petronas is a -- Google setting up -- has set up a data center in Malaysia. We already have Petronas as a customer, but now there's a much more strategic move here, and we'll be talking about that more in likely middle of next year.Now moving to questions that I received, one I received a lot, the most popular one is when did the relationship with Google start? As I said, it started here in Saudi Arabia, actually literally here in Dammam in July 2021. I was one of the first foreign visitors here after COVID's restriction was lifted literally the day after. And so those discussions started then. And then when we signed the digitization and decarbonization agreement with Aramco, it was predicated on we would definitely be moving a number of these applications quickly to the Google Cloud, knowing that the data center wouldn't be ready here in the Kingdom and Eastern province till middle of next year.Aramco owns our a big investor in a company called V2. They use that for rapid prototyping and still have a lot of use cases for V2, so we're flexible. We can run them both and are running in V2 today. In fact, a lot of the things we're working on today is in V2. And then by August, we then take it from just Saudi-only to Google came to the conclusion that this makes sense not only for Saudi Arabia, but on a global basis, the 3 applications we -- I just outlined in my earlier discussion fits the framework globally in the stack that they want to bring to market around sustainability. And so we finalized everything by August, and here we are with all this in the public domain now.Next question is how quickly can this scale? Well, some of the early customers are massive, Aramco, Mercedes. There are a couple other auto names that I haven't mentioned by name, but they come from the Google side. They're also massive that have the same kind of scale, similarly in big wind. So first area how it's going to scale is the first initial customers are massive customers. But we have about 100 named accounts that are not necessarily Fortune 50s but are big customers that we are going after. We have an excellent account management structure. We have an excellent regional subject matter structure. So you combine account management with subject matter expertise to go after these other named accounts. And so we're not only going to scale with the big guy -- big name customers, but also there's a lot of mid-sized companies that are being pursued as we speak.Third question was around Carbon Royalty. I think I kind of addressed that earlier. The only thing I would say is by using the Google contract paper and they do the billing and collection and so on, that gives us a lot of flexibility with these 10-plus year contracts. And those of you who follow SolarCity or Tesla will know that the early days of Solar City that uses an identical model to what we use in EV charging from how we capitalize and how we do manage contracts is Google was the early tax credit partner in SolarCity. So I was in the Valley, and there was a -- they kind of perfected that model. So the similar people and same people that we're working with here at Google, were very experienced around what they did with SolarCity. So there's a lot of things that are coming down the pipe today is not the right time to talk about it, but there's a lot of things that alleviates what we're doing with Carbon Royalty and focuses us on more strategic things and less around financial engineering.One another question is, what does this mean for Bank of America? Well, Bank of America remains a very loyal customer, and we remain a very loyal supplier, but they have a number of the facilities actually several not far from my place in Arizona, where they have rooftop solar, again, optimizing rooftop solar at the time of day is an important thing. So we intend to go back to them as a combined Google Cloud solution and talk to them about other things than just rooftop HVAC.The other question I have is Brackley in the U.K., is that up and running? It is on its way to being up and running. Brackley now is pretty famous, having one this weekend race in Brazil. I think everybody at the campus in Brackley were using it as a party zone. But yes, it's definitely up and running. It will be up and running. I think the team has it set for some time in early December, Phase 1 to be fully functional.Next question is Europe wind, how is that coming along? Europe wind's coming along quite nicely. We went to speak to a number of them before announcing Google to discuss what I've just talked about here earlier. That's very well received. In fact, some of the early applications that were used by Google Earth around wind are in Europe and I'll let you go see that in the public domain. Seven, what other major accounts are coming with Google? As I said, in Canada, U.S.A., Japan and Malaysia, we got a very precise account management structure where we've identified for 2023 key targets. These are TCV targets for all of our people to go and chase and meet those targets.Next question is what is Google going to represent for you in China? Well, we don't do business in China. Today, to us, China is pretty small. We will continue to opportunistically react to China as it comes our way, but as it relates to Google mCloud, there is no activity in China.One more question is around metrics since we're not using asset count as a cube measurement, there's a couple of reasons: One is confidentiality on these contracts; secondly, there's a lot of application sales that are going into these contracts that have -- are not tied on a per asset basis. There are forms, reports, there's a head-mounted display applications. We're selling a whole litany of things that don't fit the fee per month per asset or per person model, but that we see the revenue from. So it's over time, would just skew how we track things.So there's a confidentiality angle, but there's also a practical angle. But to answer your specific question, average monthly MRRs, so if we take the quarter divided by 3, our MRR on a monthly basis, that trend after we get through, call it, the 2022 noises of transition from what we had to where we are, it should be your standard SaaS metrics of MRR, average monthly MRR. And then we should compare that to the customer acquisition costs in our case, that's salaries, benefits and marketing expenses. So MRR to CAC ratio should move from a negative position where we are now to a positive position where MRR exceeds CAC, and that's the metric we're going to focus on. And then the slope of that curve to be more SaaS, Google-like slope of curve. So that's the focus there.Last but not least is the F1 to pay off the convertible note? Where are we at with the SEC? Chantal, after this call, will provide exactly what the SEC asked for last week, and that is update our financial statements. There's nothing exotic in these. There's no Agnity, there's anything like that. It will be very simple. And we should be off to the races here pretty quickly.So in summary, we couldn't be more happy with the Google alignment globally, literally, it's being absorbed into a world-class organization, and that is Google. And we see it every day. We live it every day. It's amazing. Being -- having Aramco as a validating massive customer is amazing. And within Saudi Arabia, it's not only Aramco, there are large authorities that we work with now within Saudi Arabia that have adopted Google Cloud and the applications and are focused on exactly the same thing. They're just managed as separate authorities here in the Kingdom. But decarbonization is a top focus. Mercedes-Benz as part of this kind of go-to-market strategy has been nominal. So we're well aligned. We're soon going to have the balance sheet for the strategic alignment to go and chase this market on a global basis. So we're moving into 2023 on a positive note. We got work to do to get the convertible note done, get the balance sheet finally fixed and then we walk on.So I'll now turn the call back to the operator.

[Operator]

[Operator Instructions] The first question comes from Brian Kinstlinger of Alliance Global Partners.

[Brian Kinstlinger, analyst]

Just first, can you help us understand the buckets that are in the year-over-year decline of 60% revenue, the first bucket being rationalization, second bucket being Agnity, and the third, any other factors and what they were?

[Russel McMeekin, executive]

Yes. So let's go in reverse order, Brian. Call it, seizing of contracts that are the $6, $7, $8 per month MRR or a bunch of the Michaels Stores, there's lots of them. Those were -- that's one in the third bucket. Then there's Agnity. And I think if you go look in the footnotes in the financial statements, you'll see the precise number, what that is, and it's about $7 million year-on-year. And then it's project services, but some of our contracts in Alberta were bundled project services and with AssetCare, so you'd see it only in one line, if you look on a project services, you got to take out some of the AssetCare is not going to be renewed because when you pull out the projects from what was categorized under AssetCare or recurring AssetCare, the value that they create per asset is pretty low, so we rationalize those. So that's the sum of the bucket. I would look at it in the reverse order the way --

[Brian Kinstlinger, analyst]

So I take Agnity, $7 million and divide by 4, and that's the quarterly year-over-year drop and then rationalization, you're saying is the other major factor or no or it's --

[Russel McMeekin, executive]

Yes, yes definitely, like something -- yes. Keep going.

[Brian Kinstlinger, analyst]

And then while you're not going to provide, and I get it assets connected further, it's our basis for understanding right now. So did you cut off half the assets? Did you cut off more than half that were at these low price? Can you just help us contextualize how that played out?

[Russel McMeekin, executive]

So about half would be the right number and they're blended average value of about $11.

[Brian Kinstlinger, analyst]

Okay. And then just so I understand, I understand going forward, you're going to use the Google platform that's going to be your platform. But what was the cost to support these roughly half legacy connected assets that made it in the best interest to rationalize them, given they're at least helping scale and probably marginally reduce the cash burn?

[Russel McMeekin, executive]

Yes I not sure I'd agree with marginally reducing the cash burn. But I think Chantal gave you a precise number of what we charged out. The other is headcount, right? There are people supporting -- in the headcount reduction, some of them were supporting in our -- these lower value per asset contract. So headcount reduction, Chantal, I think gave quite specific numbers around it. And then yes.

[Brian Kinstlinger, analyst]

Okay. And then lastly, for a while, we've talked about the consulting and professional services expenses, it hasn't really changed much. I thought over time, it would go away or get reduced to nominal. Is that more on the financing side? I mean why have you not seen that? And what will we expect to that going forward?

[Russel McMeekin, executive]

Yes. So once we've done F1s and financing, we're in like refinancing or financing mode, right? So yes, we look to not have audits. And every time you do an update to a filing statement around the F1, it requires a lot of professional services, outside services, lawyers, accountants, blah, blah, blah. So once all of this, call it, balance sheet activity is done, these types of services should go or will go away, but that's the primary spend in those categories.

[Brian Kinstlinger, analyst]

Okay. And then lastly, you made a comment that the revenue growth will exceed the rationalization. Just help us understand, does that mean going forward, anything that's rationalized or grow faster than so you're going to grow from this bottom point? Does that mean what's already been launched, you're going to start to recoup very quickly? Just help us understand, given the cash burn, you burned $23 million in the first -- from operations in the first 3 quarters, how will this impact that over the next, say, 12 months?

[Russel McMeekin, executive]

Headcount reduction, obviously, impacts the reduction in spend. The value per, call it, customer will improve considerably, right, the contract value. So the customer acquisition cost required for these customer types, the way we're doing going to market now, the productivity of customer acquisition cost is significantly better than where we were before. And you got another component to your question, I want to make sure I answer.

[Brian Kinstlinger, analyst]

No, that's okay. I'll see if others you have question, that's okay.

[Operator]

The next question comes from Jack Vander Aarde of Maxim Group.

[Jack Vander Aarde, analyst]

A couple of follow-up questions. Russ, you mentioned you guys have retired some legacy assets. I think you said maybe about half of the connected assets were retired were lower value, $11 assets or so on average. How many -- did you retire all the assets -- all the legacy assets that you expect to have retired -- have they retired or are there more to come and how long might we expect retirements?

[Russel McMeekin, executive]

Yes no more retirement to answer your question, but are there still some lower-value assets? I'm not going to get into Bank of America's pricing, but they obviously got a sweetheart deal. So that's the only leftover, lower value asset, and we intend to upsell them with what I'd mentioned before with the Google platform and optimizing where they have solar in the various branches and so on. But putting that aside, that's the only thing left and we don't intend to rationalize those.

[Jack Vander Aarde, analyst]

Okay. Great. So you plan to maintain those Bank of America assets then?

[Russel McMeekin, executive]

Totally and upsell them other things working with Google. Correct.

[Jack Vander Aarde, analyst]

Got you. Okay. That's helpful. And then just following up, just for clarity, with Aramco, which obviously would be a huge opportunity. It is a huge opportunity. Just wondering, have you generated revenue from Aramco? If not, why? And what do you kind of expect in 2023 from Aramco?

[Russel McMeekin, executive]

So generated -- do we have contracts? The answer is yes. Have we recognized revenue yet? No because it's to be running on the Google platform. So we will recognize revenue on Google platform. I'm not going to give any specific guidance for 2023, but it is a significant -- it is big reason why I'm here a lot and why we and I and Google -- we and Google are very focused on Saudi Arabia and Aramco is for 2023 and beyond, for sure.

[Jack Vander Aarde, analyst]

Okay. Great. And then I don't know, is there anything overlooking in terms of -- anything since last quarter we talked about potential areas of upside in terms of your revenue growth that you're maybe more excited about you weren't as or thinking about as much as maybe popped up as opportunities in the near term since we last spoke?

[Russel McMeekin, executive]

Every day, we look at accounts with Google, there's more things we hadn't thought about, right? So you're talking about the world's highest performing cloud company that opens up doors every day. So every day, we wake up to this opportunity that we didn't even dream about this time last year. So I think if we just focus on harvesting the opportunities that are ahead of us with Google, on a global basis, each accounts we're pursuing, only good things can come from it, Jack.

[Operator]

There are no further questions at this time. I will turn the call back to Russ McMeekin for closing remarks.

[Russel McMeekin, executive]

Okay. Well, thank you, everyone, and have a great day.

[Operator]

Ladies and gentlemen, this does conclude the conference call for today. We thank you for your participation and ask that you please disconnect your lines.