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6ec732207ccaa729dbec4fea6da4ae52
Yeah. This is Ryan Leonard on for Manav, and also wishing you the best, Sally. Just in terms of the long-term targets, I was wondering if you could just help us out -- I mean, we've -- this mid-single-digit has been thrown out there before. So I'm just wondering if you can break that down at all in terms of -- is that ...
I mean I'll start and then you can add. I mean in terms of where does mid-single-digit growth come from, I think we talked about the opportunities within value-based pricing over time. The initiatives are focused on improving the show. So we would expect volume growth within shows over the longer term. And we have a nu...
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3a8585935ebd02b38ba1be14487a40ec
Got it. And then just on that diversification, is that really focused on existing shows that exist today? Or do you think there is a need to diversify the current portfolio of shows?
The current outlook right now is we're looking at how we can diversify revenue in all of our existing shows, wherever those opportunities arise. And then as we contemplate new launches that may happen in the future. Of course, we'll be looking to contemplate how those types of bundles are built into them from the day o...
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A
f9b8029a9a0c0157d22c255e8c3f82fd
Got it. And then finally for me, just on the cost management side and the growing at a profitable margin, is it safe to say that if revenue growth is mid-single-digit, EBITDA growth should be in line with that, if not better?
So I think that's a good question because, ultimately what matters is EBITDA growth. That's our primary focus. And I think, obviously, revenue growth is key. Margin plays a role. But when you're looking at revenue -- at EBITDA growth over time, getting the growth rates, I would suggest, is probably slightly more import...
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113af2191fec659fc17bbf0ee598593a
Thank you. So based on this value-based pricing, I mean, how should we think about price increases for like the total show portfolio in '20 and '21? I know that it's not really being implemented until 2021, but just thoughts over the next two years would be helpful.
Yes. So the overall effect, you're right, aren't really going to bear out until 2021 based upon the cyclicality of the way the shows run, whereas I mentioned earlier, introducing the value-based pricing modeling across a handful of our shows at this very moment. Can't do everything at once. So we're doing this in batch...
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c76e0edc5a6e0696be691e7782027d79
OK. Great. That's helpful. And then just given the current assessment of the portfolio, just any update on potentially discontinuing any shows?
We're always looking at what makes the most sense for our portfolio. At this point, we don't see anything that makes sense to discontinue. At the same time, it's always an open question. And as we continue to analyze and go and continue to look for proof points about the effectiveness of the tactics we're employing, th...
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cdb1f7dfd2dcd168a06b53ffbe20776b
Got it. OK. And just last one, just quick housekeeping. What was organic growth for the three segments?
I don't have the supplemental materials right in front of me right now, but it's on the website, the breakdown between trade shows, other events and other marketing services.
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98242770238a774aa7bdb9647d448455
Great. And Sally, best wishes on the road to recovery. In terms of the revenue, kind of the non-booth revenue at an accelerated rate, Sally, any sense of -- what's been your experience there? And then within the context of that, what does the revenue look like on the non-booth versus booth? And does it change the seaso...
So we're in the process of running pilots right now and in 2020. Those pilots will help us size the opportunity and help us see which of the various things we could pursue will be most effective at what shows because there will be some variability. So I think that the opportunity is considerable over time because for E...
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9eb746b2aafcbc3736fca496edee9d23
And what would be a more traditional mix?
Hard to say because I'm not privy to the exact details. But certainly, my model from what it should look like in future years would be that we continue to grow our booth revenue, but decrease our dependence on it. So I could see us in a place where our booth revenue is 50% of our total revenue. And the other half comes...
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c6a6678abdec4fea5e7ef153c5eaeaeb
Got it. And then would you -- Sally, theoretically, would there be similar revenue growth contribution? And would you expect that non-booth obviously would grow faster?
It's really hard to predict at this point until our pilots are done. So if we do it right, there's -- obviously, we're in changing markets where things like education matter. And it's hard to predict how much growth we'll see where. But we're confident that it's there and that we can gather it over time.
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2b604568625b94204fa984e7ed236024
Thanks for taking my question. And Sally, best wishes for speedy recovery as well. Just a question on New York NOW, just -- if you can provide some color on the expectations for revenues, how much revenue could decline in -- for the Feb show? And when should we start to see the turnaround for the New York NOW? Is summe...
It's Phil, I'll try this and then Sally, you can come in. I mean, we have a new leader over the show. So -- and as we said in the prepared remarks, we're really taking some time to look at what we've got and what we need to do. We believe in the long-term growth opportunities of this franchise. It's really difficult to...
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a40a791d56f7e7c7a73f5a286c31e7c4
That's really helpful, Sally. And maybe -- again, thanks for providing the details on the strategic initiatives. My question was some of these including value-based pricing or integrated customer solution, does that require exhibitors -- may require exhibitors to spend more money and just some thoughts around that, jus...
So I'm going to ask Brian to address that. My only remark is that it's all about ROI. Yes. And so it's really about, again, the value that the exhibitor gets in the package that that company purchases. We've seen in the past as we've rolled these out before in a variety of different sectors that as long as there's tran...
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2a7e98db34c7a9f0ef76eadb249555c4
Hey, good morning. This is Gunnar Hansen in for Seth. And again, best wishes to you, Sally, on your recovery. Brian, I guess, just with the value-based pricing to follow-on that, are there certain sectors or categories or even show sizes that are best suited and positioned to benefit from value-based pricing? Is it -- ...
It should be fairly beneficial across the portfolio. That said, there may be shows that are extremely small, mostly ones that are conference-led or educational-led, where there isn't a large trade show type of component to it, where a value-based pricing model wouldn't make a whole lot of sense, where we spend most of ...
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7afd6c00ff825b9c9bfa6fc6d246dd8d
OK. Fair enough. And I guess, is this going to require you guys to kind of retrain kind of your sales staff in some of the commission plans that you guys have in place? I mean, how easily or quickly can some of the existing salespeople kind of communicate a different, more dynamic message regarding the value-based pric...
Yes. That's a good question. And that's part of the reason why it's not a light switch where you don't turn it on overnight. Right? There's the cyclicality of the events piece of it, which is one component. The other part is that the actual -- the design of the floor plan, the messaging around how to communicate value ...
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09aaa4901c7a0cfa92317e61f9e0cae7
Hi. Good morning. On RPO, you had a really nice improvement in backlog. I'm curious if you could just comment on what's driving that backlog. And maybe as a follow-up for Shyam, just as you look at the go-to-market on commercial. Can you give us an update on the direct sales build-out and partnership opportunities ther...
Hey, Brent. Thanks for the question. Great Q3, we're having a great year with our Q4 guide. We're expecting to do 40% revenue growth for the full year. And this is driven by continued product innovation, also more efficiencies in distribution like account-based sales, distribution channels. And we're very excited about...
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9ddf3df96429ab2f6245a81634542ef7
Thank you for taking the questions. This is for Keith Weiss. There was a really nice performance across commercial and government was strong as well. And sort of with the new administration sort of taking in place in terms of the velocity of those deals and getting those deals signed, any change that you've seen thus f...
No meaningful change there. I mean the government is moving at pace. I think what's really out there is the near-peer threat, and that's become the real pace setter for not only the US but allied countries as well because there's a lot of focus, a lot of speed. We've worked under four administrations, and have seen con...
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7d4843f77c282d9cce2bf6c690066063
Wonderful. Thanks so much for taking my questions, and nice to see continued strength on the commercial side. Just maybe high level, can you help us understand how the land and expand and go-to-market motion on the commercial side has differed from government in your experience and especially so far this year? And mayb...
Great, yes. We talked earlier about modules. That was a big thing a year ago that really changed how we went to market. The modules have been very successful. Just this quarter, we discussed the carbon emissions management module and Foundry for Crypto. But if we go back a little bit, what we can see is the real succes...
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cfba19355319abfeddc3e9eb0f2dab53
Hi. Good morning. Thanks for the question. I have a multipart one. So you talked about the recently launched Foundry module around crypto, and I'm just wondering there wasn't really a press release around that. The modules kind of appeared. So finding new use case is great, but I was curious if you could talk about the...
Thanks, Mark. Yes. The focus on module is to really meet the customer where they are. Where do we see repeatable challenges that we can create an offering that is very fast to deploy? Last quarter, I talked about how we deployed AML at the largest European retail bank in less than two days. This gives you kind of an in...
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70ac2fbd4523b41c571f0542d60a1fa6
Hey, guys. This is Alex Zukin from Wolfe Research. I just had maybe two quick numbers, questions. Roughly, if we think about Q4 guidance, how much revenue do you expect to come from commercial contracts with investment arrangements in the quarter? And then if it is possible to get what percentage of the total RPO would...
So on the investment program, we're really excited about the opportunity here. Just to repeat some numbers and get some context with our Q4 guide, we're expecting 40% revenue growth for the year in 2021. That's over one and a half billion for the year. We raised our cash flow guidance to an excess of $400 million. We'v...
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8a91e4bd9417c39e921937fbadd3a361
I had two questions on, I guess, recent Texas or not so recent Texas freeze. I was hoping first that you could walk you through the timing. Like if that impacts contingents, does that impact this year or next year? And the second question is, what you're seeing in response in terms to increased shopping, following what...
Yes. I guess, first, on contingents, Meyer. This is Mark Colby. It's still really too early to tell. What we do know about the Texas storm is that it was considered a catastrophic event, which helps us with contingencies, but again, it's a little bit too early to tell. As far as the shopping experience for a lot of tho...
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94f2b25362c0744407e7ba8d58ef45cb
Okay. Perfect. No, I appreciate the clarification. One related question. I guess, when you've got that level of activity, does that impact the expenses associated with servicing claims?
No. No, it doesn't at all. We were able to, especially with our service center in Henderson, Nevada, we have a load balancing capability with our workforce management, and it's just a matter of how we're prioritizing service work. So it does not increase the cost of delivering service. The clients seem to feel good ab...
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3534401b35c022fe8ecbd2425b19a994
I guess, in the course of your discussion, I think you made fairly clear that you're prepared to focus on growth, and you're investing heavily in the business at this point is understandable. I guess what I'm trying to get my arms around is, are you messaging that there will not, in fact, be any margin improvement this...
Yes. I think, again, long term, we feel that margins can be over 40%. We don't guide to margins for a reason because we want to keep that flexibility, and again, 2020 was a record year for contingencies. So all that kind of has to keep in mind with how you look at us for 2021 and beyond.
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47cb18e2943d3af42e0b4c08b1d8c0b8
Okay. On the direct consumer product that you've been working on, is there any time line related to the rollout of that? Or is that still kind of work in progress?
Mark, this is Mike. Yes, as we said, it's a 3Q deliverable this year for us. And as I mentioned, we'll be scheduling a broadcasted demonstration of the product before launch. So excited for you all to see the new interface, the technology. There is truly nothing like it on the market. It is a effortless, transparent ex...
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0d2416acba6ef6954a11a057a1e3397f
Apart from the cost, you've obviously been incurring to build and ramp. Will there be any particular incremental costs in the third quarter such as advertising or anything like that, that will be associated with the launch?
Yes. I think you're starting to see that already with the hiring of [Indecipherable] as our CMO, and as you mentioned, a lot of the developer time. So we've already started to make those investments. Really, I mean going to the SEO route, things like that, trying to compete with those $1 billion ad budgets is not our p...
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0351e758ddcd5066d11eb15d73d14b5f
Okay. And then related to -- I mean, it sounds like -- I mean, you've continued to expand on the corporate channel. As you listed out the number of new or potential offices, it seems like a somewhat longer list than the last one I recall hearing. Is there is a roadmap in terms of how many kind of corporate offices or c...
As we've said in the past, the corporate channel is -- we invest there to drive growth in the franchise channel to drive success with our franchise partners. So where we're strategically placing infrastructure is in markets where we're growing that agent footprint rapidly. We know that agents who are closer in proximit...
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c4ddbda0034851b381a883e897d25113
I'm hoping you can provide some additional color for us around franchise productivity. Tenured agents in Texas last year had productivity of about $120,000 of new business, which is impressive, being that it's almost close to the level of corporate agent productivity. However, we've noticed that the tenured corporate a...
Yes. I mean, if you look at agents who are exclusively focused on sales activity, we have not seen a peak in productivity. In fact, our most tenured agent, 14-year corporate agent, has seen productivity increases over the recent years until we moved him into a franchise -- full-time franchise support capacity. So we ha...
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f17007b353b2cf5d03148bf804767dad
Got you. Got you. My next question is about mortgage originations. What's your best estimate of what your mortgage rate market share in Texas is?
I don't believe we disclosed that, do we? I think we own, but we can -- I mean -- yes. I think we've said in the past, it's -- in any given year between 13% and 14%, and it's been holding steady at that rate for the past two years. Yes. And not that we haven't been growing in the state of Texas, but the mortgage mark...
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b5c488192b7db4cee71ab411c9b900b2
I think your credit facility comes due later this year. What are the thoughts there? Is the plan to put a new one in place, extend the existing one? Can you give us a little color on that?
Sure. I guess the main thing, Bryan, is to point out that we still have some flexibility. We do have two six-month extension options. So we have enough -- over a month to decide on whether to exercise those options or not. But as you can imagine, we have started talking to our banks about the facility, and we'll likely...
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6cc8ce523b9f07b7592d6dfe402ba2be
The thought process, I think, when you guys originally spun out was to have a couple of years go by and then maybe seek an investment-grade rating. But I think I recall Adam saying recently that the bond market is such that there's so much demand for just below investment-grade rating that it didn't seem as profoundly ...
Yes. I think shortly after the IPO, I think that was the direction we were headed, seeking to get investment-grade rating. But I think what we've seen is that there is a disconnect in valuation between the private and public markets and we've been able to raise fairly attractively priced equity capital through using JV...
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8d17d19460a4839e988a47613834ba0d
I believe the new acquisition you made in Memphis has 3.6 years left on those leases. When you acquired the property, I mean, what were the thoughts there with respect to renewing those? Do the current tenants -- are they planning to renew in place? Is the location so good, you're just not worried about it? Can you giv...
I think it's a little bit of a combination of all of those things. Two of the larger tenants both have below-market rents in relatively short remaining lease term. I think one of the larger tenants, their rents are about 13% below market. The second largest is about 6% below market. We also feel Memphis is a strong ind...
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675ed2b0071a992d306cee941fd101c9
I think John in the prepared remarks mentioned some potential disposition opportunities. I was just looking for some additional color around that, maybe what markets you guys would be interested in selling out of and what type of valuations you would expect.
I did stumble over a couple of words in the middle of my prepared remarks. But I think you may have misheard me. We're not currently looking at dispositions. We've -- we made the Memphis portfolio acquisition. We continue to look at a pretty good pipeline. So we're focused on growth. We sold the property earlier in the...
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7802be891db59ea5d9bfd9664680564e
How should we think about funding? I know you guys do have some additional buffer here before you get to the low end of that leverage target. But if you guys are active making investments, how should we think about that more longer term? What are the types of sources of capital? And how comfortable would you be leverag...
I'll let Rick fill in behind me on this one. But I think we're comfortable with leverage ticking up, as Rick indicated earlier, and using a little bit more leverage than where we had brought it down to. We do have an off-balance sheet joint venture. Our joint venture partners, being sovereign wealth fund-type investors...
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81992ffe62e6768c6cd72aecd34ca3a3
So maybe if you could talk a little bit about -- I appreciate the color on growth by sort of major business as you think about '21. If you could maybe provide any similar color on runway for growth in the physician's office and what that looks like maybe in terms of round numbers or directionally magnitude of growth? A...
Thanks, Matt. Thanks for the question, and I appreciate your comments. So we don't really provide direct guidance on sales channel. Our stated goals for the office was to be at about 50% of our Advanced Wound Care revenue, and we're moving quite nicely toward that goal. But we do expect to see strong growth in the offi...
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09108bad05989fa27fe33a31b750958c
And I'm sure some other folks have a follow-up on those trends and topics you just mentioned, but I'll just ask one question, if I could, around EBITDA. And you sort of delivered, obviously, a very strong top line growth in the back half. And I'm sure that was a contributor to some of the very strong 23%, 24% second ha...
Yes. So we're not breaking it down by quarter. But I will say, you're absolutely right. What we saw in the back half of the year was very, very strong growth, 57%, Q3. 43% in the fourth quarter. So obviously, that growth has generated a lot of flow through. And so our expectation, we tried to give you some guidance on ...
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2dd627e249cfc5d2eaa0883b6077d3e2
Is it -- if I could just ask, is that mean you sort of -- as you see continued strong growth here in the front half, maybe is it the right way to think about if expenses catch up, investment maybe catches up to some of the momentum here in the front half. And then as you mentioned, back half, you're facing tougher comp...
Yes. Again, I mean, I think we don't want to be providing quarterly guidance at this point. But I would say that your expectations around growth are correct given the comps that we saw in the back half of last year versus the comps from the first half.
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d55ed60d07acec5a8128260ebbc717a0
I guess the big question I think many are asking is around the guidance. And I appreciate all the color you gave, but particularly around PuraPly guidance and the expectation for that to grow kind of in the mid-single-digit range in spite of what you did in the fourth quarter. I mean when we think about kind of the lin...
Well, sure. So I think our Q4 performance, which was really strong. And obviously, Q4 is our strongest quarter, generally. And PuraPly benefited from some of the disruption we had in our amnion manufacturing. So it's a tough comp. Going forward, we do expect unit growth for sure with PuraPly. We have three months of he...
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aa055003f4a0f9ba2b41d7cf3530782f
And as far as the enforcement discretion, will we hear about that potentially before that would go into effect? Or help us understand maybe what the range of outcomes could be. I appreciate the conservatism to take it out of guidance for 2021 particularly in the back half. But maybe just the range of potential outcomes...
Yes. So number one, we will not take the product off the market unless directed. So that's the first, I think, important thing. I think the FDA, and though I'm not an expert in the FDA. But the FDA cannot give you authority directly to keep selling because they're requiring all of these products to have a BLA license s...
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c2bb4da38cc3a49c92c98bfdfc7550a4
ReNu, I understand, I appreciate the enforcement discretion impact from that. But bigger picture, where are we at in the process for ReNu? Remind us kind of where you are as it relates to a potential BLA. And when do you think you could have that on the market more broadly with the proper reimbursement in place. And po...
Sure. So we expect to complete the enrollment in the first half of 2022. We expect to complete the study in the first half of 2023. And then submit in 2023 our filing and then the FDA would have that probably for at least a year, which takes you out to 2024. And this obviously assumes that we're only having to do one t...
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B
7b6ea0fc0d64717356edd90203d8d01e
Starting with Affinity, Gary, you've said in the past that demand has outstripped your ability to supply that product. Can you maybe just give us an update on where you are on capacity and manufacturing there. Are you able to satisfy all the demand that's in the marketplace as of this quarter? Or how should we be think...
Sure. So the answer is we're not able to support all of the existing demand today. We did increase our capacity in Q4 last year. That capacity improvement didn't come until the end of December. We were hoping to get it earlier. So we are enjoying that additional capacity in Q1 this year. And we're in the process of get...
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649611ed61e183c90e9fd8887d39690a
Got it. And then on ReNu, I think you have said in the past that you're expecting a data readout for the 12-month Phase II trial. One, is that still on track? How will we hear about that? Will we hear about that and what form?
Yes. That 200-patient study was published -- if you're talking about the 200-patient study.
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5fc0ec424972b7d9b222bad4f75e757d
Yes. With the 12 months, is that going to -- OK. So that -- what data are we expecting in 2021 from the Phase II or any additional data?
Sure. So just recently, the 12-month data was published just recently. Obviously, as you know, the six-month data was already published though that 12-month data was just recently published. We expect, by the end of this year to getting close to completing our interim analysis of 50% of the patients. And we'd probably ...
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cc5346c504127e7b56c36ccb26137cb3
OK. That's helpful. And just on ReNu, can you help us size -- or help us think through the way you're thinking about the market opportunity. How, once available, you would potentially commercialize and what the target market would be and the opportunity there.
So we see the market, which is primarily hyaluronic acid today, of being about a $2.4 billion market. So our 200-patient study that we have completed, and as just mentioned, the 12-month data was just published, was a 3-arm study. One comparing it to one of the market leaders in hyaluronic acid. And obviously, we demon...
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d1ddb7d174140888222cee183699cf5e
I wanted to ask on the amnion business. The guidance for 2021 speaks for itself. I'm wondering what you are seeing competitively. How you're feeling relative to competitive efforts. And are we seeing just also a significant expansion, again, in the overall use of amnions in the marketplace, given the strong guide that ...
Well, we certainly see an expansion of amnion technology. It continues to be the largest growth technology in the skin subspace. We even see that same growth in the auto biologics space in our Surgical & Sports Medicine business. So amnions are clearly expanding the market and growing. Our product, Affinity, is the onl...
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ab0a99ee65dacdf50bd17de248106cb5
And then just as a follow-up for the pipeline. I apologize if I missed this. But on Novachor, can you talk a little bit more about expectations there and what that adds through your amnion portfolio?
It's a significant product for us. We believe it will be a significant product for us. Its impact this year will not be material. We're expecting to launch that product at the very end of this year. So the revenue impact won't be until 2022. And just to remind everyone that it's the same manufacturer that makes Affinit...
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8ce256964c350cd8e82c739ccad5c1fe
I guess, Scott, if we could go back to your discussions about the engagements with your customers and the delays or maybe it sounds like almost tabling of some of your efforts. I guess, how direct have those customers been, have they given you any quantification? Has it been just kind of an engineer to engineer thing i...
Yeah, Cody. So, far there has been no pausing or tabling of our efforts with customers. What's happened is, if we have a customer that we are in phase three with and we're running wafers with them and the wafers are already in the fab, typically this -- those are -- they haven't really changed in priority and will get ...
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aff7a56c672f863b3131086e7974af0c
You had shifted your attention from new customer acquisition to monetization of your customer program, so are you seeing a material -- you said you're talking about slight impacts of your existing customers or are you counting on those customers to increase engagements and that maybe solidify their interest?
Yeah. The most important thing for us with existing customers is to get programs that we're working on now push to completion and get into production. Although it's great to start new programs with existing customers because generally you can get started faster, there's lower barriers, you don't have to go through all ...
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8389e4168b5b3f75c0a391493afa6a65
You said you put more on your blog about your MST developments, you've not mentioned a thinner layer. Can you expand on that at all here?
Sure. So, our MST is quite thin. I think we say in our annual report that it's on the order of 100 angstroms or less. That's quite small. 10 nanometers or less but now the new -- the newest process nodes are talking about coming along at three nanometers or some fraction of that. So, even though MST is very, very thin ...
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A
110f582ca09370d04c14937199266c93
And then lastly for me, just the process, the recipe that you mentioned in the press release that you were able to deliver, knowing that every customer is different what has been the -- I guess, what have you learned from the delivery of that recipe that you can port to other customers or is that not a tailored process...
No. In this case we're delivering our -- really in many ways the company's crown jewels is our recipe for how you actually build the film in an epi tool. Even if you look at all of our patents and they talk about how the film is constructed, it's very, very hard to build. There's a lot of know-how involved in it, so th...
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c41fa3e35287854e2c991d1760365754
Based on Cody's question, I'm probably going to broach what he was talking about a little bit here. But it sounds like you're seeing some limits to the pace of progress given that most of the fabs out there are so full that there is not much room to run any test wafers here, is that a fair description of what you're se...
Yeah, I was telling Cody that we are still able to run test wafers that were in progress but getting new wafers especially for new projects started is becoming more challenging. And I would say on my last update call, which was in early February, we were not seeing that. It's just been something that -- and we are watc...
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e4e02ca765f8f2d84903021ec054e514
Are you able to run wafers on projects that have already been started and your customers are very interested like your phase four customer, as an example? Is there any limits to doing that or can you push those through on the original time frames that you're expecting?
So far, we haven't heard about any delays on any of those programs.
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f098b628c313600834cba9ac22582b78
Are you worried about that, is that giving you some pause, or you feel pretty confident your customers are going to show your wafers to run on schedule?
Yeah, I mean, we've lived through this before. I think there were some delays but to the extent that we were able to make people excited about it is they continue pushing it forward with some delays. I think the fact is, we're not super focused on bringing on new customers right now and if we did then that would be a b...
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3739619b8b046e469fe9876605073bee
Anything that Atomera can do to make progress particularly at the customers who were far all along the pipe. I know that you've talked I think for this a couple of quarters about focusing more on those and less so on adding new customers at the early phases here, is anything else you can do or encourage your customers,...
Yeah. One of the things that has been very helpful to us along those lines is our MST CAD. A lot of the phases that we talk about when we talk about working with customers are designed around physically processing wafers and moving wafers through toward production. But you can do a lot of that with MST CAD just through...
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8cc25fd1c75265a1d6915a661c6f6186
With your phase four customer that is, as of today, is on announced in terms of name. Is there any thoughts on when this customer might be announced in terms of Phase or what Phase to enter getting to production or anything like that? Trying to get a sense of when we might figure out who they are.
This customer is extremely sensitive about confidentiality and I'm not sure when they would actually start to loosen some of that up considering the amount of focus that they've had on that. At some point when we do go to production, I think it will become intuitively obvious, but for now, I don't think they're going t...
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a4f8748cbd05717bcaac75fe14aac53c
If MST CAD is gaining traction with the customers, and is it accelerating the conversation then moving customers along the pipeline?
Yeah. As a matter of fact, I'll tell you one of the interesting things that's happening is -- it used to be we would go to customers and we'd have our first conversations, we get into kind of deep discussions about physics and how MST works and how it can be integrated in their product. And then, we would start working...
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5174c1ad8a1515dacc626c93ec41bd5b
We've had a number of questions on the Epi tool. Is it qualified, where is it, is it going to be used by your JDA partner and the timeline on that?
OK. So, our Epi tool is located at the Arizona State MacroTechnology Works center in Tempe, Arizona. It's a world-class semiconductor facility used to be owned by Motorola, who I believe transferred it to Arizona state years ago. Beautiful state-of-the-art facility. Now, why in Tempe, which is just outside of Phoenix? ...
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e8e38672f58b5c49247707984ffb3d4d
Do you see any federal government agencies that you're working with to help you advance your goal or is that not on the radar at this point?
Yes, we don't -- we haven't really approached government agencies regarding that. We are -- there's other reasons why we might be talking to government agencies about our technology for our use in various applications, but for -- to help solve the current capacity expansion that hasn't been something that we have done ...
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7dcef22401d85c5c2ddeb18b646358a2
Jim, I was hoping you could just talk about how you see the sort of macro outlook one quarter later into COVID. I don't want to put words in your mouth, but it sounds like you have a little bit better feel for how the business is going to fare under COVID. The software renewals sound like they're coming as expected. An...
Yes, obviously, we're a quarter into this and probably through the worst of it. It's been eye-opening, right? We weren't really sure how things would proceed. For the most part, our customers are continuing to do their business. The engineers in R&D that we work with are continuing to be very productive, as you see in ...
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A
01398363dd0d048ff8f6472a2f8128dc
And then wondering if you can talk a little bit about the Altair Units business model. Is that intended to facilitate kind of cloud-hosted usage of your products? And in general, are you seeing more hosted usage of your products during COVID? And if so, how does that affect the business model from a growth or profitabi...
So the Altair Units is intended to address a few different things. We've created, if you will, these suites with different price points. And so it gives us the ability to go into different accounts where they may not want access to all of the products, just a portion of the products and going a little more aggressive p...
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508ebe0388486562bf810939e5c2e7f7
I want to touch a little bit on renewals. Last quarter, you mentioned some elongated sales cycles around auto and aero. I guess, first, how have these conversations progressed sort of June, July? Have you seen any improvement in sentiment? It feels like you have and I know I'm sort of echoing the previous question, but...
So on some of the larger deals where we see there's an expansion opportunity, we do see them going a tiny bit slower. We had one that actually should have gone in Q2, for example, pretty large one that we've already closed, and it's a very nice addition for us to the business. But it did delay a bit. So there is some o...
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1e2d41076b9b8e55045212368f9a8276
You obviously have the simulation product, probably that is SIMSOLID or SOLIDSIM, I said, I would get wrong. But I was wondering how uptake of that product is going, given we're pretty excited about what it's going to do in the simulation-driven design space? Something you usually comment on that and you didn't comment...
Yes. So I mean SIMSOLID is continuing to drive usage for us. It also drives a lot of interest for us, which brings the opportunity to sell the other products as well. We integrated it inside of Inspire. The Inspire platform is our simulation-driven design platform. It got a lot of different simulation capabilities insi...
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8423d0db95ed1eb06af19a485c2c9643
Jim, just a real quick question to follow up on Altair One. I caught that you said that will be out shortly. What kind of costs are associated with preparing for that launch? And I guess I just wanted to maybe get a better understanding of, particularly as you provide scalable computing resources for users on the platf...
No. All of what we're doing is on third-party infrastructure. You may have seen a big deal that we announced with Oracle. And but we can move those workloads to any platform and if customers want to actually take the entire Altair One solution set, they're going to be able to run it within enterprise as well. All that ...
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e8ee6ed1b9e17b28e1a0e55575a6a0a8
Howard, just to follow up on you noted in your prepared remarks, progress with data analytics. Maybe could you provide an update with regard to Datawatch and the progress with that business, particularly with regard to migration over to unit-based pricing. Is that pretty much done? And have we kind of lapped the runoff...
Yes. No, terrific progress there in terms of the conversion of the business model away from what was legacy paid-up, perpetual type business. So I would say, by and large, lapped, there's still, I would say, a little bit to go over the balance of this year relative to the prior year. But the positioning of the product ...
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A
d2382d6041ae43aa63238e19e29d0ae5
I just wanted to quickly touch base on the software renewal comments of how it's coming in as expected. I just wondered if you saw an increase in churn and how that may be a trend trended over the quarter end through June. And then separately, how did that new business essentially develop both new and existing customer...
So as far as churn, churn is really not I won't say it's not part of our vocabulary, but it's just really not fundamentally part of our business or our business model. As a reminder, our customers use on average something in the neighborhood of 20 different applications over the course of a cycle. So we typically don't...
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6634a17a6c56286f586a8b618a1741cc
Howard, maybe on the guide for the year. I was just wondering how does what does this imply for Q3 and Q4 in terms of linearity?
So the movement in terms of the top line per se, when we reduce the top line, was really just our view on being conservative and in particular, on the services side of our business, which you can see the results in Q2 here with software-related services and CES. And the shift upward on our range on software products is...
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cdf8ef5b9f4472720afacf0c62c49a01
Just a quick follow-up on the Altair Units model. I guess, first, do the suite still allow for tinkering with other tools outside of maybe just the products that are within that particular suite? And then second, has the suite centered around a physics discipline? Do you have a CFD suite? Or is it end markets like you ...
So to answer the last question first. There's not an aero suite or an auto suite. That's not how we did it. We have basically, industrial designers, mechanical designers, concept engineers, mechanical engineers, mechatronics engineers, data analysts and enterprise and the enterprise suite. So that's how we've organized...
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d1261222b7503a2b66482d94e5883be0
A quick follow-up on a lot of discussion on renewals and net new, and it's great to hear that the renewals are holding up. I'm just curious, is it possible that renewals are also holding up at your competitors? And so that may be impacting your ability to take share because in August 2020 may not be the best time for a...
So first of all, I always like to say that the market that we play in and that our competitors play in is actually a pretty darn good market. So I think all the ships are rising. Let me say it that way. And you're right that there are certain teams that are going to say: this is not the time for change. But we, frankly...
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cacb9b8cba3d3c907c8c30c349cd11f1
Jim, I realize that your SMB business is relatively small at this stage. But it is something that is an initiative at the company. Are you seeing any more buying hesitation with smaller customers than you already with your larger customers in that market?
Probably, I have to admit that I'm not I maybe not as informed as I should be. We are more and more going indirect to the very small customers, much more so than we were doing before. And so for us, it's a new space. And so we're actually seeing probably more activity than we were seeing before because we've been somew...
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bb0e0e71b53c1b16341ef25cd63e62c7
And then with respect to what you saw in different geographies, could you just talk a little bit more about where you're seeing weakness and where you're seeing strength?
Yes. I was looking at the numbers this morning, just to because I thought somebody might ask this question. And actually, the growth or the flatness to the business is pretty consistent across the board actually, between the Americas, EMEA and APAC. So in general, I think we're seeing things somewhat equivalently. The ...
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fe844a0be7c9ce5192a4d7573e4d7bec
Maybe I wanted to just start with one. I know, Steve, that you mentioned that the ARR decline in Q1 was slightly larger than expected. I'm wondering if you can maybe give us a view of linearity in the quarter. I know there's the differences between the seasoned cohorts and the first-time renewal cohorts. But as you loo...
Let me take that, and Steve can jump in. So from a linearity point of view, there are two parts of this. One is the new ARR, and second is the churn ARR. When you look at the churn, Arjun, I think what we had guided was that we saw rationalization from a handful of larger accounts early that hit us -- that was going to...
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ed98eb1f561c364957ea879042fecdbc
Just as we reopen here and folks return to in-person events and in-person meetings, can you just give us a sense of what your customers are asking for from in-person and hybrid solutions and maybe where you are in being able to deliver on that with some of your newer capabilities across the in-person and hybrid landsca...
Yeah. Let me answer that, Arjun. First of all, what we have seen on our platform is extremely telling. The attendee engagement on our platform as measured by the length of attendance and the engagement tool interactions reached a record high in Q1. I mean the longest attendee spend for people on the platform. So we did...
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f460093e15dfef8c8db30ae145fbad2b
Great. This is John Godin on for Scott Berg. And thank you, guys, for taking my questions. First, just looking at the revenue guide, the operating loss guide, just curious where are you taking out from the current incremental cost in the model. Do you see it as more of a permanent reorientation of the cost structure or...
Yeah, this is Steve. Let me talk about the puts and takes on the revenue guidance, which is -- and you were breaking up a little bit there, but I think that's what you were asking me. So the midpoint of the revised guidance, it is 195 -- I'm sorry, $193 million. That's compared to the midpoint of $202 million, which we...
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8b3a469701d60bbd3778cb3b8ddb2be7
Great. Thank you. And Sharat, you mentioned your customers are changing how they're using the platform a bit. I'm wondering if they can present a little bit more and maybe provide some color on how some of your new products are resonating here. Thank you.
Yeah. So for the longest time, we had the live experience with the Elite platform, the Engagement Hub that took all that content and made it always on and then we had the personalized product. Then we also had a managed services virtual conference product and everything feeding the first-person data. But as we listened...
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7086d449453af008e2103886df60c76d
Hey, thanks for taking my question, Sharat and Steve. Pardon me for my bad throat. It's a follow-up to the earlier questions. If possible, could you please break down the top line guide or just kind of parse it out a bit to elaborate on the underlying factors? I know in terms of relative impact, still provided a good l...
So I think you talk about two things. The sales cycle was the second question. The first question seems to be what we are seeing in terms of rationalization and others. So let me provide a high-level feedback. As we previously had talked about, I mean, we talked about Q1 being the trough. The rationalization from the h...
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b05d185657554a3a748c5aeabd13f8f9
Got it. Got it. Thanks a lot, Sharat. Really helpful. Just one other quick follow-up. Sharat, on the multiproduct and new product adoption trends, I know it's early in the product life cycle. As you mentioned, you guys closed a number of these deals. Kind of seen one of the fastest rounds, as you said, regarding the ne...
Shrenik, I just want to make one clarification. I think the multiproduct adoption was not mid-20s last quarter. It was -- it stayed about the same, approximately the same. I just wanted to make that clarification that I heard that right. I can't immediately comment on what it will be in the immediate term, but I am inc...
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8a0b5245df6497e802904efed0fca250
Hi, guys. This is Hannah Rudoff on for Brent today. Thank you for taking my question. First one is just that glad that you're seeing that positive feedback on the new products you've introduced the last few quarters. I guess, how long until Forums and Go Live become meaningful drivers of revenue? And what does that pat...
Yeah. So just to provide perspective, Forums was just launched, and it's currently in very -- we've got trials going on. And as you know, Go Live we launched at the end of last year to get into kind of enterprise level of quality, took us about 60 to 90 days. It's early that's why we have not factored in these new prod...
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7daee24b454fd3ccb57afab7092de68f
Yeah, that's great. That makes a lot of sense. And then second question. We're now over a month into Q2. I guess can you talk about what you're seeing in terms of pipeline build and demand generation so far this quarter?
Yeah. We are seeing good additions to our pipeline, especially for the new products that we talked about that we've seen one of the fastest start. And personally, you asked, because ON24X, which is our flagship event, user conference is happening tomorrow, and thousands of customers and partners and prospects and partn...
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63c728f18ce433c3466a4bfd24dad889
Can you talk about the IPO? You referenced the conclusion to the elections. And at that point, you sit down and evaluate the pros and cons of hitting that. So that gets previously targeted end of your window. What are the puts and takes for you, one of the things that you're going to consider at that point? And then ju...
So, I think, with respect to the IPO, as you know, India is the largest democracy in the world. And these are last elections and you have to get votes out of 1.3 billion people. So, as the elections come to a conclusion, we expect that whole process to get over by the beginning of June, depending on which, whether it's...
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ab28f1f8eb91709176719af6197ce8e5
The US business, you've said last quarter, you were looking for that 5% to 8% growth, and I think you took it a few steps forward -- further this quarter and said you expect growth there going forward in the coming quarters. Can you just take a second and talk about the third -- the TPA EHAE side of the business and th...
Look, I think, once the revenue decline has happened to a level that it becomes meaningless it does bottom out. That's how I look at it. But having said that, the consulting business has kind of bottomed out. When you look at the overall revenue numbers that we have, we have already seen the momentum. We're trying to -...
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4dae74bcf71bdae60bddb75929ee6397
Back to India for a second. The BOC relationship obviously was announced sometime back, and I realized it takes a lot of regulatory approvals with respect to insurance and the sort of go-to-market that you were proposing there. We haven't seen an announcement, maybe just an update on the BOC, how you expect that to pla...
Thanks, Jeff. So just that's a very large opportunity, as you know. And what we're trying to do is, it's clearly an example of a paradigm shift. And when you try to do something which involved a paradigm shift, then you have to go to the regulators, you have to make sure that the regulators also have to think and rethi...
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f9703815811997f4c9cdbc5b144e9c42
Can you remind us what borrowing capacity you still have remaining?
That's correct. It's just under $15 million under our current arrangement. We do have a capacity to extend the accordion to, I think, another $50 million over and above that. It's a great question, purely because I got asked, are we feeling any pressure in terms of money and so on? And the answer to that is no. First ...
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0bd37c9a23be3a4741c7c0fa81a2dd00
In terms of your aspirational goal of $800 million in quarterly annualized revenue by 4Q of 2019, could you give us a sense of what that number might be if no new acquisitions that haven't been announced yet were not included in it?
Well, look, I think, first of all, I've spent above $800 million, so this $800 million could be $850 million, could be $830 million, could be anything, right? I just said, above $800 million is an aspirational goal. Now having said that, at this point, I think we would be including at least one acquisition in this goal...
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cb4d2ed0eb7d51755841d4845464ce81
Do you think you've done a very good job keeping your margins high? Is it -- do you think it's a good way to think of kind of maintaining them at around 30% for the next year or two is probably a reasonable way to look at things?
Look, I think what -- we need to be very careful with -- we need to be very pragmatic about our margin. I think, in the -- I clearly feel that the company needs to be focused on 30% or more in operating margin. At the same time, as we get in into some of these new adventures, we might have one-time costs associated wit...
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2e2ed0eec62b2014575a3bc3abfc53c0
First of all, you took a lot of cost out of the business obviously last year. And you retroactively increased the salaries, I guess, and the bonuses, and that was all in the fourth quarter, so that was like a true-up? Or I'm just trying to get a sense of how much of the reinstatement of the salaries, what would that me...
Hey, Michael. Yes, that was a true-up payment. So what we did was everyone who took a pay cut back on April 15, we went back in December and did the math on how much they had given up and we turned around and cut them a check for the difference in December. That was a total onetime payment of approximately $2 million. ...
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420b28efe18ee6b4f141994bda5fb890
And then can you just kind of give me a sense of what did Cisneros do in revenues year over year and the quarter on a stand-alone basis? So what was the rate of growth that they experienced? And then embedded in your Q1 pacings, could you just kind of give us a sense of how much Cisneros is growing? And then, I guess, ...
Sure. Well, I'll cover the numbers and maybe Walter will chime in on the other platforms. So this -- at fourth quarter of 2019, Cisneros did about $42.8 million of revenue. And in 2020, just remember, we acquired them on October 13. So you've got a stub period of 12 days that's not on our books. But just a portion tha...
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b2db4dcdddb65567189885d7ea0cd97f
And then what's -- in terms of -- I haven't done the math here, Chris. But if you factored out Cisneros in the first quarter, what would be -- what would your digital revenues be then in terms of pacing?
I don't have that broken out. You know what, I'll -- let me come up with that number and get back to you on that.
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53ccdfa3f991c491f4d3819f2f6c62c7
And then maybe if you could just talk a little bit about the M&A environment right now. I know that it sounds like you would love to be able to make more digital acquisitions. Walter, in the past, you've made some comments about what you would like to see in terms of the contributions from digital in terms of the total...
Well, I'll just make a couple of comments, Michael. And thank you for your questions. Our total digital revenue was about 60% of total revenue in Q4, and we expect that trend to continue in 2021. We also are looking to grow our digital portfolio and then identify, I'll call it, accretive, complementary assets to our di...
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d668cb79c90db9757740ea7137ef498e
And Walter, do you have any thoughts in terms of what you would like to see your digital contributions be in terms of total company revenues in the next couple of years?
I won't make a comment on that more than what I've said already. I mean it's already 60% of total revenue. We expect that to continue this year in 2021. As we add more digital businesses to the portfolio, it will increase. But to what level, I don't know. But we're certainly -- one of the great, I'll call it, benefits...
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d69ef142904aba85c47c4d79fe6cc34d
Regarding M&A coming up in 2021, are we likely to -- how -- is it more likely to see small acquisitions, a number of small acquisitions, or do you think you might be making another large one? What's the environment out there? What kind of assets are available?
Well Lisa, we continue to look for like I said assets that are complementary and assets that are accretive, so -- to the business. We're just constantly looking for opportunities that might be -- might help the business grow. Certainly, growth has been one of our No. 1 goals, to not only to achieve the growth we have t...
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205f0357d439bda4bf8ce7af9e6cbc7b
OK, thank you. And my next question concerns the dividend. What factors would have to fall into place for a restoration of the dividend to the former level?
Well, it's tough to define the factors per se. It's an issue that's going to be looked at by the board accordingly for the balance of the year. And all I can say to that is stay tuned.
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49a7c9ffd69373d4a2db18b28b22f0f1
Thank you. Just a couple of quick follow-ups. On the TV side of the business, a 1% retransmission revenue growth is kind of anemic, it seems, relative to the industry. I was wondering if you could give some thoughts about what we're likely to see in 2021. And then in terms of your core pacing down -- being down 4%, it...
Sure, Michael. On the retrans front, our deal with Univision is basically locked in at high single-digit rate increases year over year. I think we're at $0.27 for 2021. $0.26? $0.26, I just got corrected. But the problem therein is that the subscriber counts keep offsetting those rate increases. So we saw subs decline...
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ea60c5a56d66493f59e3be46ae3ba089
Could you please characterize the current near-term demand environment for your vehicles? These are obviously unusual times. I think back in Q1, you had indicated record backlog, I guess, at the beginning of this past quarter. I haven't seen any specific comments about new orders or backlog in the release today. So can...
Demand is not a problem, definitely not. We do have some production supply chain challenges we're trying to slow right now. For example, the Model Y, we're body casting, obviously, because it's new technology. It's been tricky to maintain rates and keep growing the rate for Model Y casting, which is -- it's a two-piece...
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efeff8c5e4cffbe33d2093da15eca72b
As Teekay Corp. continues this transition, right, you've done the TGP IDR buyout, it's basically just a holding company with daughter shares and two FPSOs on their way out like we saw some slides on that in the presentation. Along those notes, we asked last quarter, but just to check up again, what is the G&A that's no...
Hi, J. This is Vince. Yes, the second-quarter G&A of the parent was higher than normal because of some onetime factors. We had some fees related to the IDR transaction that was completed in May, and we also had stock-based grants that were issued in June. So if you look at the first half G&A for the parent on a more n...
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d6097149fd04fccac93e19dff6478f27
OK. Thanks, Vince. That's very helpful. So $6 million to $7 million annualized. And is that reasonable to say that would be going forward for '21 and beyond or is that a little bit elevated because of the FPSOs?
No. The G&A related to the FPSO is separate in the FPSO line item. So the $6 million to $7 million is good in terms of the corporate level.
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24b435aacaca00aae1d5b372c6e6cb15
OK. Thanks, Vince. Turning to the FPSOs, you talked about the Banff, it has a $44 million asset retirement obligation that's been disclosed for a while. I realize you've kind of -- you accounted for that in the income statement. The first part of that is, how does that impact your cash balances? How much of that is al...
Yes. We have a -- first of all, we have a fairly strong liquidity position at the parent. It was about $170 million as of June 30th. And when we complete the refinancing of the existing revolver, that should go up to close to $200 million. So we have a good strong liquidity position at the parent. As you mentioned, th...
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B
989d854db452c9a2470a4033bf47dfa5
OK. We'll have to check in next quarter and see where that goes. And along those lines, you have a very sufficient liquidity balance, as you mentioned. You have the revolver rolled. You have a very high cost of debt remaining on the company outside of that revolver, right? You have the 9.25% secured bonds and you also...
Yes. As you know, in the past few years, we have been chipping away at that and reduced our expense of debt considerably over the past few years, and that's -- that continues to be our goal. We recognize that we need to reduce our cost of capital over the long term, and so that is our goal. We have the maturity on thes...
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a8abe5cd029e88e7e411d00c8e5d80c1
Hi. Good morning, everyone. Maybe just to follow up on the previous question about the debt obligations at the parent. Maybe can you just talk big picture, is your goal for the parent to be a -- like, a debt-free type entity or -- by monetizing some of the asset value you have in the company or do you see yourself stil...
Yes, it's Kenneth. It's, obviously, a stated target for us to reduce our debt obs there. I don't think we have a stated target per se of reducing it to zero. I think what we are, as we touched on, on the previous questions, what we're focused on right now is that with the significant and growing asset coverage that we ...
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6a1031b3e1335a9a99b80ce522842e6b
OK. And just one last one from me. The revolver, good news that you were able to extend that for two years. When the time comes for the potential refinancing of debt at the parent, are you allowed to borrow under the revolver and use those proceeds to refinance the current debt obligations or is that only for general c...
No, we're allowed to use those funds. So we can draw on the revolver for refinancing purposes as well. As you know, right now, that entire revolver is undrawn, and we're sitting on about $70 million of cash, so we don't really need to draw on the revolver in the near term but it is available for other reasons.
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7ea1d8c9820215b3e9853ffe6df25c56
Hey, good afternoon, this is Thomas Kelliher, on for Sean. Thanks for taking the questions. So starting off on bookings and congrats to the commercial team on another strong quarter. It still doesn't appear that you are being materially impacted by a slowdown in biotech funding. Is this an accurate assessment? Or have ...
This is Matt. I'll take that. We're seeing a little bit of a blip in the summer, but I think the positive around that is it's actually a higher rate of issuance versus prior year. So I guess, to answer the question in a typical summer slowdown, but improved performance over prior years. I think, we're encouraged really...
intermediate
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B
06ddbf81610a8b6db281678a9731cbec
OK. That's helpful. And then, can you guys talk a little bit about the visibility you have on the fiscal 2023 guidance? I know you reiterated the revenue. Have there been any changes in terms of quarterly cadence or maybe mix of revenue coming out of backlog versus your initial outlook?
Yeah, I think, backlog, frankly, is the -- sorry, the outlook for the full year remains pretty much where we were last quarter or at the beginning of this financial year. Obviously, we've had a good start to the year, which is not totally uncommon. We've seen, I think, as I just heard Matt a good uptick in comparison w...
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c0afdf4748de2a83823cb3be8e79f24e
Maybe a question on the cell and gene therapy side. With the PD lab there now online, when you started thinking about the CGMP manufacturing coming online next year, kind of maybe -- one kind of latest thoughts on business development trends, now that the PD lab is open. And number two, kind of any thoughts around the ...
Yeah, Jacob, it's, obviously, a brand-new business for us. And we literally brought on the AD and PD capacity, literally a few weeks ago. And I am delighted to say that we actually have already signed our first client. So that's -- I think, in any new business, finding your first client is always the hardest. And we've...
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b1841da3de3f44253a8788adadb30788
Got it. Thanks, Nick. And then, just to follow up, on the expense side of things, Nick, you mentioned you're continuing to hire and continuing to add to headcount. Yeah, as we think about that, certainly, some of that headcount is going to go to the actual manufacturing facilities, and I think, impact gross margins. Bu...
Yeah, I mean, I'll hand it over to Dan in a second but -- if he wants to add anything. But I mean, very simply, we're bringing on quite a significant amount of capacity, the analytical development and process development we just talked about in gene cell therapy. Obviously, in order to attract the client, having an emp...
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