Yubico AB

STO:YUBICO

Earnings Call Transcript 2024-Q1

[Operator]

Welcome to Yubico Q1 2024 Report Presentation. For the first part of the presentation, participants will be in listen-only mode. During the questions and answer session [Operator instructions]. Now I will hand the conference over to CEO, Mattias Danielson; and CFO, Camilla Oberg. Please go ahead.

[Mattias Danielsson, executive]

Good morning, everybody. Sorry for the delay. Welcome to the Q1 report presentation for Yubico. And as mentioned, it will be me Mattias and my colleague Camilla, Unique CFO presenting today. We'll start with a recap and an overview for those who are new to the company, talking a little bit about Yubico and our business, and then we'll get into the updates for the quarter. So several of you will recognize this, but at least we've updated the numbers, so some of this will be news. What hasn't changed is that Yubico is the proud supplier of YubiKeys, solving one of the major threats in the cybersecurity landscape by providing a strong multi-factor authentication, phishing-resistant multifactor authentication. Our core product is the YubiKey, so we're a hardware-based company. And in spite of being hardware, a lot of our focus is, of course, on the software provider on the key and connected systems, and because of that, we've been able to maintain healthy margins historically. Camilla will talk a little bit more about how the margin definition has changed according to IFRS, but as you can see on this slide, we are at about 80% gross margin. The last 12 months, we posted approximately SEK 1.9 billion in revenue. And what we are most proud of is, of course, the fact that we address a major security problem. Those of our customers that have implemented the modern protocols that the YubiKey have experienced exactly 0 account takeovers. We'll talk a little bit about our products shortly. And the second thing that I'd like to highlight is that we have a -- excellent set of customers, loyal customers, we've sold our solution to more than 4,500 enterprises and government customers. We have deployed a little bit more than sold and deployed abit more than 30 million YubiKeys, and we boast some 30% of the Fortune 500, 500 as our customers. So there is a clear focus in our market -- go-to-market on larger enterprises and government agencies. And today, Yubico has a little bit more than 400 employees, I think we ended the quarter with 438 employees. So let's do a little bit of a deep dive on the part about our customers. On the next slide, you can see a subset of our customers. And if you look at these brands that have agreed to us to being a public references, we started out with a very heavy focus on high-tech companies working with some of the industry leaders [done]. The fastest-growing sectors today are financial services and government -- different government agencies across the world. So we have a very broad set of customers, but with a focus on large enterprises and some of the major household brands that you're all familiar with. And if we move on to the next slide, we've been able to expand our footprint continuously, if you take -- I talked earlier about the Fortune 500, if you instead look at the Global 2000, [Indiscernible] 2,000 of the largest public companies, we already work with a little more than 1/4 of those. However, in most cases, we only work on a very limited use case. So our average penetration among the customer base is relatively low. We only have a subset of those who have deployed YubiKeys to more than half of their employees. So there's definitely a lot of upselling potential within our existing customer base. And we do have very loyal customers. This is one of the updated numbers in the presentation. If you look over a 5-year perspective and look at our major biggest customers in 2018, you could see that the annual average repurchase rate is a full 119%. This means that if a customer had bought 10,000 YubiKeys in 2018, the average customer bought 11,900 in 2019, another 11,900 in 2020. So that's how we should interpret that number. And this customer loyalty exists on both of our business models. The majority of our sales, some 80% of our sales is still in perpetual mode, i.e., that we sell a YubiKey with a perpetual license to use it but about 20% of our customers buy it on a subscription basis, which kind of by default means that there's a recurring revenue, but we see a lot of repurchases also from our perpetual customers. And as I mentioned, we started out with a very heavy focus on tech working on the leading players in that industry since then we've expanded both across industries and geographically and now cover a much broader set of customers. So that's what we're very proud of when it comes to customers. The second thing I'd like to highlight on the next slide is, of course, our product and problem that it solves. Fundamentally, what we're selling is a key. There needs to be a lot at the other end, and we've invested a lot in making sure that our key unlocks all the relevant locks in an enterprise use case, more than 1,000 different applications today to support YubiKeys. Initially with us reaching out to individual applications and making adoptions so that it would fit into all these different blocks. To an increasing extent, it's instead we learn after the fact that different applications have now provided support for you YubiKeys because their customers want to be able to authenticate in the same system in most convenient way. So this is really a key to our success that we have a Swiss Army type key that fits into all the relevant locks for an enterprise environment. That's the short recap on some of the highlights of our company. And if we start to look at the highlights for the quarter, we, of course, are -- Camilla will explain in more detail -- go into details of the numbers but of course, we're very happy about the growth that we're seeing in bookings. We saw order booking growth of about 65% year-over-year in Q1, and it came from a wide set of customers across different industries and geographies. So no individual orders really stood out, but it was a large set of mid- and large-size customer orders. We keep having a high profile, as an industry innovator, we highlighted already on the previous call that we got recognition [Indiscernible] and other magazines and then received another recognition there by being recognized by Fast Magazine as an industry innovator, fast-growing company. Another thing which is worth noticing when we look at the report is the conversion for IFRS accounting. I won't go into detail, sir, but I'm sure Camilla will provide more details. Another thing which doesn't really relate to the company's performance, but it's worth noting that during the quarter, specifically March 18, we had a lockup expiration for the previous shareholders in Yubico AB, as you remember, [Indiscernible] [Audio Gap] and the first lockup expired at the 6 months, approximately March 18, which means that there is more liquidity in the trade. And the final lockup expires on September 18 this year. After the quarter end, which is, of course, after this quarter, but 2 other things that I'd like to highlight is that we -- we released an upgraded firmware. We announced it on May 6, and it will be available at the end of this month, which means that there is additional features and making sure that we stay one step ahead of the competition, of course, most importantly, that we provide the best protection there is for our customers. So that's important for our long-term sales growth, of course. On a more practical note, today marks the day of the first AGM for Yubico as a publicly credit company. So please feel free to join at the -- well, I think you need to preregister but we're going to be meeting with shareholders who have preregistered today this afternoon. Yes. And with that, I'll hand it over to Camilla, who will talk a little bit more about the financial numbers.

[Camilla Oberg, executive]

Thank you, Mattias. Yes. So the quarter, we think it was a quite good quarter Mattias commented on the order bookings, we have a very good growth. Looking at the net sales, we see a growth of 20.4% and this quarter, we have a very low impact from local currencies when we measure the growth, so 20.5% in local currencies. Looking at the gross profit, we have grown the gross profit a little bit more than the net sales, so thereby, also we are improving our gross margin a little bit. Gross margin of 80.9% versus the 80.1%. To note here, the gross margin is then that as we have changed our P&L format into a functional-based format, that means that we are excluding up the P&L on cost of sales, R&D, sales and marketing and administration. And thereby, we now in our gross margin have also allocated the indirect costs related to supply chain, manufacturing and so forth. So that has impacted the gross margin of around 55% -- sorry, 5%. So if you recognize this as a below number compared to our previous reports about the fact. In the report on that note, -- so in the report, you find the full details about the conversion, both on the IFRS transition and also this functional P&L change. Just a short comment on this transition. So they are just commenting on the office leases, which is something that, I guess, most of you expect to see effects from. So that is implemented, and it's very, very small effect on the P&L. You find lease liabilities and assets in the balance sheet, but on the P&L is very low. The other IFRS, which you can think should affect is the capitalization of R&D. We have done a thorough analysis of that and of course, it will affect. But historically or where we are now, we haven't found any development projects that are actually fulfilling the requirements for capitalization. And that's not that we're doing things but depending on where in phases we are and where -- what we are actually doing, we are spending quite much on continuous upgrades, maintenance and things like that, but then it's more exploratory and early phases when it comes to R&D. So right now, we don't have any impact, this does not mean that we will not have any impact in the future. That will probably become projects that will be capitalized in the future. So that would -- as I walk on the IFRS, but there are other gross profit [Indiscernible] here, so it's stable. And then looking at our profitability. We are satisfied with seeing that we have a positive effect in the profit. The EBIT margin is going up from 17.6% to 18%, small steps towards our long-term target. On the ARR side, we have been growing the ARR year-over-year with 26%. So now running on a portfolio of SEK 277 million. We will deepen into that later in the presentation. So a quick deep dive in the bookings, where you noted that we have a very good growth of 65% in the quarter to SEK 579 million. And this growth comes from a good spread of customers and both on geographies and on different segments. So we continue to widen the customer group, which gives us a very good foundation going forward. Notable is that we have a long-term financial services contract for subscription. It's actually a 5-year subscription, which is affecting the order bookings now in Q1, but will affect the ARR in Q2 because the contract is actually starting in Q2. And yes, subscription bookings, I said, is then corresponding to 18% of the bookings is very much higher than last year, 7.7% of the bookings. Looking then at the net sales development. We're continuing a good journey here, notable is when you read the report you will see that Americas -- the region Americas looks like it has been growing very much compared to the first quarter last year. I would rather say that the Q1 last year, Americas was unusually weak or slow. And the split we have between the regions in this quarter is more representative and also more in line what you saw full year 2023. So this is more normal. On the ARR side, you see here the dip we had in Q1, and this relates to a large renewal we contracted in December but is starting to affect ARR in January this year. But we already see, as I said, that we have good order bookings on the subscription. So this ARR development will turn upwards again when we see Q2 coming out. And we see also -- we generally see a good interest for our subscription offering, and we'll see that this will continue with a positive trend in the future. On the profit side, we -- as I said, we have -- when you look at the P&L, you will find this new format where it's functional-based instead of cost by nature. We think we are developing well, of course, as I said, despite that we actually had quite high costs ready to commission. As we commented in Q4, if you recall that, we had -- also when we had high order bookings, we have high commission costs. This is also the fact in Q1 as we're taking the commission costs when we close the deal. And for those large -- larger orders that we get we will see that the revenue is coming through and thereby also the profit coming through during a much longer time. So we will see effects from the order bookings here now in Q4 and Q1, also being visible in the net sales and in EBIT, both in Q2, but also during the second half.We also had another realized currency effect of plus SEK 13 million here, that is related to that Yubico AB has quite much U.S. dollar in the balance sheet. And as you have noted, we have a quite good cash position, which is also then contributing to this as we keep quite much in U.S. dollar. Short on that and then looking at the cash flow. So we had an operating cash flow on SEK 33 million positive in Q1. Last year, if you remember, we had a super boost in the first quarter related to large amount of invoicing in Q4 2022. That is why it was super high. This is more normal, but we also continue to see the buildup in the inventory, so we invested SEK 67 million more in the inventory. We see now that this will flatten out so that we are -- the growth we have in net sales will be more balanced towards the levels we have in the inventories. But it's important for us to have good levels here, as you know, both for secure our ability to deliver towards the customers and the high demand we see and also securing the availability of components, but we are there in a good position. We also had a strong ending of the quarter and thereby also having strong billing. So that is also contributing to a negative change in the working capital. We have a good cash position, cash and cash equivalents to -- of SEK 577 million and a net cash of SEK 541 million. At the end of the quarter, we have a small loan of SEK 35 million, something towards a credit institution, but here, you see also the effects of the IFRS conversion. So in interest-bearing liabilities, we now also have the liabilities of the office leases, as you see here, so half of what we have approximately in that item is related to the offices and not then a real debt, so to speak. Yes. So that's on the numbers note, Matthias. So leaving over to you.

[Mattias Danielsson, executive]

Thank you, Camilla. And as always, there will be an opportunity to ask questions at the end of the presentation. Something that I would want to highlight as we talk about market conditions is that, as I think you're all aware, there is a very high level of fiber threats out there. Recently, a report was released by the International Monetary Fund highlighting the importance of cybersecurity for financial institutions. And this is really what we're seeing translating in a high level of interest and strong sales growth to financial services actively because there is both on the individual actor level -- sorry, on individual bank and financial institution level, there's, of course, risk associated with the fact that there is a high pressure of phishing attempts and other cyber attacks trying to access individual customer funds and information. But also on a systemic level, there is a threat because lot, -- as you know, there are -- in several markets, very high concentration, some cases, oligopolies effectively on the bank side which means that if you see a major cyber attack on a financial institution it has systemic effects, which is actually a threat at the macro level or to society. And because of this, IMF is issuing recommendations on updating cyber security policies and ensuring that we have good governance and of course, that you have a solid stance when it comes to ensuring that you'll invest in cybersecurity measures to counter the attacks. And this is driving a lot of our growth. Another indication of the importance -- the growing importance of cybersecurity for financial institutions is a recent directive issued by the White House, very much echoing the conclusions that IMF has shown the importance of keeping a high stance when it comes to cybersecurity within this important secretary. So I think there's plenty of room for growth in the sector and others. You could to some extent, say that if the initial targets were government and tech companies, the second wave now is very much heading the financial institutions at a very high level. With that said, I think we are in a good position to continue on our journey. As is mentioned in the report, we reiterate our long-term financial guidance, but we feel that we have strong momentum. Importance of cybersecurity, of course, and the fact that we offer a world-leading solution, which is addressing the biggest attack vector, i.e., compromised long credentials. We've built, as I [Indiscernible], a little bit about in the -- at the start of the call, we built a unique position where we have a -- built a strong product which addresses the customer needs, and we've built an excellent set of customers to grow from both within those customers and using that as a bridge out to winning new customers. We have a solid sales performance for the quarter and similar to the situation in Q4, it's not just one individual order or one customer that stands out, it's actually from a very wide set of customers, industries and geographies. As I also mentioned, the vast majority of our sales is to existing customers and we're able to scale that business and build partnership, long-term partnership with major customers, which is important, of course. And part of our efforts is, of course, making sure that this is high on the agenda of policymakers working proactively with regulators and policymakers in the U.N. and U.S. to establish proper cybersecurity, a proper cybersecurity stance. So a lot of tailwind on the market and it's up to us to execute on this, and we feel that we're off to a good start to the year. Unless Camilla has any final remarks, we'll open up the floor for questions.

[Operator]

If you wish to ask a question, [Operator instructions]. The next question comes from Erik Lindholm-Rojestal from SEB.

[Erik Lindholm-Rojestal, analyst]

Camilla, a couple of questions from me, if I may. So starting on the exceptionally strong order growth here in Q1. As you said, this is driven by a wide set of customers, geographies and industries. What have you seen here as part of Q2, is it fair to say that this broad strength is continuing? And yes, how should we think about the remainder of the year? I'll start there.

[Mattias Danielsson, executive]

Thanks, Eric. It's a great question and as you know, we don't issue forecasts for individual quarters. We remain committed to our long-term financial targets, but what is encouraging, as I mentioned, is that we're seeing a strong sales momentum and it's not just one customer, one industry or one geography. It's across the board. And I think that's reflecting the importance of both the cybersecurity trap and also the product is very relevant for this market. So yes, I think I'll [Indiscernible] that relevant position for future growth.

[Erik Lindholm-Rojestal, analyst]

All right. Perfect. And then secondly, I think you said that the vast amount of sales is driven by existing customers, but is it possible to quantify sort of how much of the order growth that we're seeing here is driven by existing customers, upselling and how much is driven by intake of new customers?

[Mattias Danielsson, executive]

I mean, what we typically see is that over a full year, some 80% to 90% is from existing customers. As we enter a year, we know that some 80% to 90% of our sales going to be to existing customers during the next 12 months. That swings individual quarters, I think in this quarter, we saw a higher degree originating from new customers, that could partly be driven from the fact that there's a lot of attacks going on and that typically leads to a quicker deployment and perhaps a bigger initial deployment than we've seen in the past. But there are no -- it's too early to talk about trend there, really.

[Erik Lindholm-Rojestal, analyst]

Yes. Perfect. And I think Camilla you explain the dynamics on ARR there, but it was down slightly sequentially, as you said. Is it possible to quantify the impact of the renewal of the large contract at lower volumes and also thinking in general of the renewals that you have seen so far? Have this been at lower volumes in general or have they been at higher volumes in general?

[Camilla Oberg, executive]

In general, I would say they have been on higher volumes of the same values. This is not -- the effect we see from this renewal is not the normal, but it's going down. So it's a good opportunity for us to upsell and increase scope, of course, for all renewals coming up. I would not comment more on the ARR developments and we know already now that from the bookings of Q1, the ARR for Q2 will come up in a positive [Indiscernible].

[Operator]

The next question comes from Joachim Gunell from DNB Markets.

[Joachim Gunell, analyst]

It seems like you just said encouraging to see the breadth into those bookings number. But can you just discuss the eventual convergence between bookings and the net sales? I think that the main deviation here was the strength on the subscription side, and that obviously will be recognized over a longer period of time. But the larger perpetual bills were they won late in the quarter and then basically just what this implies for Q2 acceleration of net sales?

[Camilla Oberg, executive]

I would say that the good order bookings that we have on the perpetual deals, both from Q4 and in Q1 are set up for longer delivery and you will see impact from them, both in Q2 but also in Q3 and Q4 this year.

[Joachim Gunell, analyst]

Understood. Perfect, and raising the line of sight a bit here. So there's been some several severe cyberattack here targeting, for instance, U.S. medical infrastructure here in Q1. Can you say anything whether these high-profile breaches were customers of Yubico or have they become customers of you after the breach where you were recognized and ultimately, how you see this opportunity to translate for Yubico?

[Mattias Danielsson, executive]

Yes. We, of course, want to avoid being ambulance chasers, but we've noticed on a number of occasions during the quarter that the ambulances are calling us, let's put like that. Yes, I mean sometimes, customer conversations really get highlighted and prioritized based on that there has been a recent high-profile breach. And then because of our -- at this stage, relatively good brand recognition, we do see quite a lot of incoming traffic from that. Of course, you typically don't change your authentication solution at the flick of the switch. So it does take some time from that initial call until we have a significant rollout in most cases. But yes, definitely, you see some reaction when cybersecurity threats are realized, and then you have a live hack.

[Joachim Gunell, analyst]

Understood. And perhaps on that similar topic, about this new SEC ruling or regulation, have you seen that disclosure rule driving new business for you? Can you just add some color here? But we are seeing some customers -- I mean some hacker groups are using this as a -- basically weaponizing this disclosure rule to highlight this. So has this translated into new business for you yet?

[Mattias Danielsson, executive]

I have only anecdotal evidence that this is driving business and it has come up, but I can talk about whether it's that particular regulation or requirement for public companies to disclose hacks that is the main driver for this [Indiscernible]. I think it's really kind of the overall threat landscape, which is generally because it's hard to single out that as the biggest contributor. But there has been some anecdotal evidence of that.

[Joachim Gunell, analyst]

Great. And then just finally, we have seen how some of the larger cybersecurity players out there are increasingly driving a debate about, or around platformization. So can you say anything about how you envision that, call it, platformization strategy as opposed to your more best-of-[Indiscernible] type of core strategy unfold for you over the coming years?

[Mattias Danielsson, executive]

That's a great question. I mean we have historically had 2 approaches. One is that we want to have one key that fits into all relevant locks and also that we want to be a 'love all serve all', i.e. that we want to work across all platforms. Of course, sometimes, we work in partnerships with other suppliers to make sure that we have more of a turnkey solution, but we don't want that to come at the expense of working across all platforms. I think -- I definitely see that trend in some cases, and you even see kind of buildup, especially within the PE sector that they're requiring different components in providing a fully fledged solution. I still think that our approach of working across all platforms and loving all serving all is the one that enables us to address the biggest market. So yes, we're going to continue being best that we -- what we do. And I think that really is so far paying off.

[Operator]

The next question comes from Predrag Savinovic from Carnegie.

[Predrag Savinovic, analyst]

Again, congrats encouraging results. Very nice to see. Some follow-up questions on the financial sector. You called this out in Q4, you're calling it out again as a driver in Q1. Is it possible to quantify this a little bit more now that you're seeing orders coming through? And you spoke -- you spoke about the regulation that's coming through on U.S. banks' security, and we know a lot of banks are also using very old systems. There's a security liability potentially somewhere in every one of these systems, talking about the systemic risk on paper it appears as there should be a big opportunity here and it accelerates from the fourth quarter. So can you give us more detail on this opportunity, if possible?

[Mattias Danielsson, executive]

I'll try to, first, as I mentioned earlier on, historically, our biggest industry vertical has been high tech. I think given the performance today, it looks like that's going to be eclipsed by financial services this year. That doesn't mean that Hi-Tech isn't growing, but financial services is growing in importance. And of course, it takes some time before you kind of get to critical mass in our industry. And I feel now that we've at the cusp of that within financial services, which is very promising. The other part, which is, again, something that we've spoken a little bit about in the past is that it's important to note that the vast majority of our deployment within financial services so far has been for internal enterprise use. It's only in a very limited set of cases that we are providing that extra security to the end users. That presents a huge opportunity. It's partly up to us to -- well, it's up to us to realize that because I think we're in a -- the fact that people are within banks are using our -- is using our product internally, at least should validate it as we enter into discussions about protecting the end users, which is, of course, very close to the best interest of both the banks and its customers. So I -- even if we're seeing good traction, I think there's so much more potential within the sector and so far, a very limited part of our business, but we're going to have to change that.

[Predrag Savinovic, analyst]

That sounds interesting. And let me rephrase the question you got earlier in terms of new customers. If we think of new customers you gained over the last 6 months, could you give some color on how much they are driving sales this quarter or percentage of the net sales in this quarter?

[Mattias Danielsson, executive]

Without disclosing a specific number because we don't report that, I would say, point to one thing, which is interesting. We've seen an additional -- an increasing number of customers that actually go for a bigger deployment day 1, i.e. that they go not from the typical land expand that we've seen in the past where they deployed with a small subset, say, previous access management users and then expand from there. We've seen an increasing number of customers that go big or early on when they're using our subscription offering because that lends itself to a planned rollout where we sign up a commitment for typically a 3-year period and start with a small deployment but already know what the end game looks like. So that business model actually lends itself to a bigger initial deal, which means that more of the revenue will come from new customers, i.e, that we don't -- we're able to scale customers more quickly with the subscription model. Sorry, from being -- not being more precise on that, but that's actually from my perspective, an interesting trend.

[Predrag Savinovic, analyst]

Okay. Okay. Very good. And then, I think, finally, on the margin, which I think is quite good in the quarter. And it kind of suggests that your scalability of the business can be quite a bit better than where you're trending currently and at the same time, you have reiterated your financial targets. So maybe some debate around the OpEx development going forward, what kind of R&D plans to have because you have [Indiscernible] there are certain investments that could be interest. Any plans on hiring more salespeople and so on?

[Mattias Danielsson, executive]

So as Camilla mentioned, short term, this will be -- this Q1, I should say, not this quarter, but the report quarter, Q1 was one where we saw a bigger increase in order bookings than in net sales and that means that the commission cost would be higher because we take that cost at booking with some modifications for subscription, but a larger part of the booking before the net sales actually in our books. So that means that the margins are depressed when you see a stronger order bookings growth compared to net sales growth. So this means that we -- there is a short-term effect there, we should sell straight over time. Long term, the reason why we reiterate our financial guidance is, of course, we could go more into harvest mode if that was deemed appropriate. However, given all the market dynamics, we think that it does make sense to invest and continue to invest our free cash flow in primarily 2 areas. One is, of course, developers, making sure that we have a more rich product and that we stay ahead of the game and secondly, developing our sales motion, hiring more salespeople, but also being a little bit more leveraged in our go-to-market effort. So that's why we reiterate. You're right, we could have more -- I mean the business does lend itself to scale quite nicely, but we're still investing in building this market and providing our solution to a broader set of customers. The next questions that I can see are written questions that we got. I'll start with the first one. And that's -- I don't know if I should read it out loud to make it visible. Congratulations for a strong Q1 with the growing identity market in Europe in the EU, particularly driven by new upcoming regulation as Yubico planning to complement its offering with software solutions for identity verification, IDV or ID proofing, IDP with the various EID scheme currently in development across Europe? Hardware walls could complement this new software offering [Indiscernible] ARR. Thank you. That's a great question. You clearly know a lot about this industry. We talked in earlier reports about the fact that we're engaged in the EUIV wallet project. Again, that's an open standard. So we want to make sure that our hardware solution fits into that lock, too, so to speak, even if we're talking about it [Indiscernible] here. Again, it comes down to a question of we want to make sure that we don't lock ourselves to a solution, which only serves a subset of the market. We want to make sure that what we're offering is relevant in this particular case across the landscape, both in terms of applications and countries. So I can't give you a straight answer there. To us, it's very important that we offer a solution based on the YubiKey that covers all the relevant markets. And there's lots to be done there. It's still an early stage, and this is not a sprint, this is a marathon. This is a massively complex project, but we're engaged heavily there, and we want to make sure that we can support this effort, both, because we want to sell more because, of course, but it's also very well aligned with our company's mission to make the Internet safety for everyone. And to do so, we need to support identity and use it [Indiscernible] -- safe way across different services. More to come there, but we definitely see this as a very interesting market development. I think we had -- okay, that was it. Okay. We'll leave the floor open then if there are any final oral or written questions. Otherwise, well, thank you, everybody, for attending this call. Please feel free to reach out to us with any additional questions. Alexandra, our IR person, Camilla and I will be happy to take any questions. And also hope to meet many of you at today's AGM. Thanks, everybody.