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647bc21361fbfddc978595577f103b63
So one of the larger IDMs globally announced a product strategy that included chiplets is part of its product road map and really a reliance on more packaging technologies to bring together true bleeding edge elements of a system with trailing edge to best optimize its manufacturability and its capabilities. If that we...
Yes, Craig, I think we feel confident about our ability to capture. We feel confident about our market share opportunities and handling almost any kind of capability, we think will be good for us. But I think -- I got to say, I think we need to find out a little bit more about what drives some of these specific opportu...
intermediate
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B
895db7b16d84effd2fad333e5a717b9b
You expressed confidence in closing the cryogenic steel, which is encouraging, but can you just help us with some color on the factors that are giving the company confidence that will close here in the June quarter. And then as we look beyond that close, any thoughts on what we would expect, either with respect to oper...
Yeah, Craig, I wish we could give some more color. It's -- the process is confidential, but I can tell you that there's been a lot of good cooperation and we're going to wait now. We're in a waiting mode and again, both parties are fully engaged in when we were confident about our ability to move forward, but it's all ...
intermediate
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B
271a33ac6b10311a9bde3af51552ef78
Steve, maybe first off, in terms of the semiconductor business, you talked a little bit about second tier foundries and some of the opportunity there. I understand how leading edge will continue to be a driver for most of your semi business. But can you give a little color in terms of the trailing edge and some of the ...
Sure, Patrick. I think, first of all the things that Tier 1 foundries discovered about the benefits of contamination controls apply exactly to anybody going below 28-nanometer. And I'm not sure how to comment on specifically what they're putting through the foundry, but in general we see something that looks like a rep...
intermediate
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B
c91fab413c76b0fb0c50301d4c55ffd2
And maybe as my follow-up on the Life Sciences side, you got a good strong quarter coming out of the bat with GENEWIZ and you mentioned the number of customers. What I'm getting I guess on a quantitative basis, but maybe more qualitative, are you seeing any leverage yet between the existing customer bases on your sampl...
Patrick, we haven't seen leverage yet but it's between the sample management team and the GENEWIZ teams, they are developing strategies, exchanging leads, and I think there's a lot of energy behind it. So we are confident that we will begin to close opportunities here. And maybe even as early as this current Q3 but the...
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A
e1644fcef4ab8fd1d929b09d6a8262e7
In terms of the progress you've made on the Life Sciences' margin side, part of it is obviously due to GENEWIZ being a contributor, a higher gross margins. But what can you I guess specifically say on the sample management side, that's helped improve the overall Life Sciences' margin profile over the last few quarters ...
Yes, Patrick, it's a good question, and let me add some color on that. So as we've described in the past, we've had lagging margins on the store systems side and pretty good stability on the balance of the portfolio particularly driven by BioStorage services and sample management. So when you look at that in total, we ...
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A
d1cc00fde3b69911d700639422a3cb27
How do you frame your thoughts on the outlook for your Hip and Knee business in the back half, given the rise in COVID cases that we're seeing?
We're seeing a gradual increase throughout the year of a return of elective procedures. With the Delta variant, there are starting to be pockets of disruption, but hospitals are capable of dealing with this. Some markets like Latin America are actually improving. We've baked some disruption into our guidance, but feel ...
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A
37bc5c0572df027a6606e7e5cb1e0181
Can you comment on the acceleration in neurovascular? Was that market share gains? Was the strength in ischemic and hemorrhagic?
Neurovascular had an outstanding first quarter at 27% growth, and this quarter was 30%, so not a huge acceleration. We have a great product cycle across flow-diverting stents, ischemic stroke, hemorrhagic coils, and aspiration catheters. We're seeing fantastic growth globally, including in Asia Pacific. We expect to co...
intermediate
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B
767ab76cc68bc8b9a5cc9887f0814e4f
Can you give a sense of what the key drivers are in the MedSurg business, how the ProCuity bed launch is going, and what you're seeing in terms of capital equipment health?
We continue to see a stable capital environment. Medical has had strong sales, as has our Mako technology. Within Medical, we've seen strong performances from emergency care. For ProCuity beds specifically, we've gotten good awareness and customer engagement. We're seeing building momentum in orders and sales in the US...
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B
234ba2eb364e2952b18d262c155c0d5a
How are you thinking about the progression from second to third and third to fourth quarter? Are we already back to normal seasonality or when might we expect that?
Q3 tends to be seasonally our softest quarter. We expect this year's seasonality to be very similar to prior years. Talk about vacations potentially delaying procedures is likely just noise that could shift procedures within a quarter. We expect normal seasonality as seen in prior years.
intermediate
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B
2feb2db54080e5e87fe9749bf2de3378
Can you talk about what you're seeing in lower extremities for Wright Medical? How did that business do versus 2019?
The total ankle business did very well in Q2. The rest of foot and ankle is more discretionary, with podiatric volumes coming back. Q2 was better than Q1, but it is lagging a bit like spine and hips/knees as it's more elective. We're pleased with the sales force stability and leadership. As elective procedures return, ...
intermediate
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B
f8c0486f0cc92c80d068e4b77bd9bd02
Can you help size the bone cement headwinds in ortho and give a sense for what the Mako capital contribution looked like?
Mako continues to be very strong, so we haven't seen the same sequential improvement as other businesses. Bone cement has been declining and was impacted by the pandemic, so it will be a detractor for that category. We don't provide a specific breakout, but Mako continues to grow while bone cement declines.
intermediate
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B
f85eafd3d9695332fb3a9b1f000a294d
What are your expectations for Mako over the next 12-18 months with J&J launching Velys in the US?
We expect Mako to continue to do very well. Competitive entrants validate that robotics is here to stay in orthopedics. We have an outstanding solution delivering great results, which is why hospitals are buying multiple Makos. We welcome the comparison and like our chances, though it's early days for competitors.
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B
f94a37e19896e90af43799739ff8727f
First, will be helpful if you could talk about what impact, if any, you've seen in recent weeks as the pandemic has flared up here again in the US a bit. And then, secondly, Jeremy, hoping you could talk a bit more about your product initiatives in Multi-location specifically and Yelp Audiences.
Hi, Cory. It's Jeremy here. So, to kick things off now, I guess, obviously you're talking about Delta. I would say, it's too early to say what the impacts are. I think if you look back historically, obviously as people get more concerned about their safety, they tend to pull back. But how that will play out with a much...
intermediate
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B
69140139b04230db6a08a88dd4322aea
I just have a basic question on the guidance. It seems like the guidance was raised by about $10 million on the top line, but $25 million on EBITDA for the full year. And then, you had a big EBITDA beat in the current quarter. And so, it almost implies something happened on the expense side that was beneficial, but you...
Jason, thanks for the question. So, in the second quarter, we -- obviously we're pleased with our performance on adjusted EBITDA. Fundamentally, we do see this as a strong marker for the margin potential for the business, especially coming on top of the 26% adjusted EBITDA margin that we saw in the fourth quarter. That...
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B
6a4a042c7d05bd016f68a1ffed0ab185
First one, the average CPC being down 20% year-on-year, that's probably a bit noisy given the 2Q '20 comp dynamic. Could you maybe help us understand how CPC has trended Q-on-Q directionally and just how that's impacting the non-term budgets and retention? I think you'd flagged that as a benefit last quarter. And then...
Trevor, this is David. I will address the first and then I'll turn it over to Jeremy to address the second question. And just to step back for one moment, one of the things that continues to be fundamental to the strategy that we've set for ourselves is to deliver additional value to advertisers. That's something that ...
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0439dd63bbcd3658f4e6823fffc13c72
First, for David, you've made a lot of progress on margins over the past few months. As we get back to just kind of a normal world at some point here and we'll see what Delta brings. Would love to hear about how you think about just the balance between revenue growth and margin expansion going forward. So that's questi...
Justin, thanks for the question. I'll obviously tackle margins to begin with. And how do we think about revenue versus margin performance, and it starts for us with ROI. When we look at investment opportunities, and that's across product and engineering, sales and marketing, what we're always looking for and we do this...
intermediate
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B
7c075f5ae367462a47a31a2e8f583bce
How do you see the correlations between Self-serve and Home and Local segments recovering? And is the tight housing market creating any unique dynamics for your Home Services business?
I guess, I could try and tackle the question from a macro view, the housing market, how has that affected Home and Local Services. I mean, I think over the past year, we've seen pretty robust activity in the Home and Local Services segment. And in fact, Q2 here, Home and Local for Yelp was up 35% year-over-year and up ...
intermediate
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B
643bfdb6cc93fcc627e5144e07e06d56
Could you talk about how the federal vertical performed in the quarter? And do you see any benefits as Fed spending picks up?
Well, our big federal quarter is actually the coming quarter and so we have a lot of orders in the pipeline. But as always, the federal spending and last minute spend is still up for the grab. So we are looking for a good Fed quarter. And normally, Q1 is not a good Fed quarter, but Q2 is a good Fed quarter being the en...
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A
bdea0fd1f9db698cb479b62a19471cd9
Did you mention anything on software-only mix?
So the software, what we've been calling software-only, which is the transition of customers from hardware appliances to costs or to just buying software from us for the quarter was about 32%. It was 40% in Q1 of last year, which was predominantly due to the financials and government dynamics this quarter versus last q...
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A
8cbffaf5300b871a28aa08bca64ab4de
On the services revenue, it was down sequentially, a little bit more than I would have thought. Is that tied to -- is that just a lagging indicator tied to weak product sales a year ago?
Eric, there's a few things going on in there. One is there was a comparison -- a difficult compare of about $1 million where we had back maintenance in Q1 of last year. The other item is, as I mentioned in the script, service provider consolidation, where the largest -- one of the two largest carriers combined and they...
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A
8848c17e6d9a3ad4305e93a73c50cf5d
And then how should we think about it for the September quarter, is Q1 a base from which we grow?
I would say those dynamics continue at this point into Q2 and that there are programs in place that sales of wanting to reincentivize certain customers as well as just looking at other areas where they can improve the service revenue renewal focus. For the full year, it would appear at this point that we will probably ...
intermediate
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B
3bf91a869b810d4a95ab74b02ff55c10
So you guys called out enterprise security weakness. And obviously, we have been gaining the strength across the board given what's going on in the attack environment, much like what we had about seven years ago now and really some of the strongest budget in times we have actually come across in a long, long time. I gu...
James, let me just cover high level, and maybe Jean can add some commentary. So this one quarter is not the trend overall we think the service assurance -- as cyber security growth for the year will be close to twice the rate of service assurance growth in the year. So as we talked about single-digit overall growth, se...
intermediate
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B
fcbb389d4aa6a560b4557afcba09ca49
One of your networking peers actually called out earlier product orders due to supply chain shortages. And it does seem like you guys had some more net pull in effect this quarter, especially as you left guide unchanged despite the product upside here and eight-figure large deal that we were talking about, is it fair t...
Yes. I would say, it's not only to the supply chain. It is related to one of the Asian providers that had been rolling out their 4G network over a few years now, and they completed one of their projects involving our solution in this quarter rather than last quarter. And then -- I'm sorry, this quarter rather than next...
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A
aeec2d1091f773969e6a53d5124cb5e8
Just a quick follow-up on the security side of the business. You have talked in past quarters just about the ability to demo some of these newer solutions. Have you guys seen that start to open up much at all or is there still some risk to being able to trail and get that in front of customers?
Yes. So yes, Kevin, there is some risk into that. I just wanted to mention that what our cyber security line is 100% based on Arbor solution right now. So not only we expect to grow that area with some new ideas we have and new way of deploying the product, but we are also adding now non-DDoS security to our portfolio,...
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3bb9a912f92dc09c28528949a97c1538
Got it. I appreciated that [Phonetic]. And just one for Jean as well on the product gross margin side. I think you mentioned an inventory reserve taken. I was wondering if you could provide the size of that? And then maybe more generally, just talk to whether that was the primary factor and kind of the decline relative...
So this quarter's product margin is down due to about $1 million of discontinued products that we reserved. I would say the last half year -- last prior fiscal year was gross margin was probably a little more suppressed by the product mix, where we had more calibration revenue, which as you know is lower margin, lower ...
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A
17d42a6f6a9c3b4232667e07fa6a4f7d
Got it. And then just one last one. Just with respect to the Smart Edge monitoring solution that you guys introduced. I'm curious if that's something that your customers have been asking for a while or if there's more kind of an opportunity that you identified, given some of the hybrid work dynamics that's gone on sinc...
Yes. So Kevin, so we have announced our Smart Edge monitoring solution last year and for remote sites. And unfortunately, most of the remote site people went home because of pandemic. So we got a lot of input from our customers that they are looking for similar capability for work from home users. So this now the revis...
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08cb98d7b2e2b3961ca7b5326e82ba6c
Julie, I'm going to start with a number's question. I was hoping we go to the loss ratio. And could you spell out for us how much in dollars the favorable development was this quarter? And how much it was last third quarter?
So this quarter, we recognized about $300,000, the favorable development in the third quarter. And last year, it was slightly higher than that. I want to say it was about $350,000.
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A
1bb19de91595990dd9dcd8458e0b216b
And then, just more broadly, can you talk about what you're seeing in the loss cost environment? And particularly, I think in the past, you've commented a little about how COVID has been a benefit, but you've been waiting to see kind of how it plays out across the year. And if you could update us on your thoughts there...
I'll be happy to do that. Matt, this is Andy O'Brien, and thanks for joining the call. The story for us for COVID is really the same this quarter as we reported last quarter. We are still not seeing a lot of loss activity as respects COVID claims. Those that we do have, most have been either closing without payment or ...
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A
072178b122f8a6e1dc61bc64e6ea381c
OK, great. And then, maybe could you talk a little bit about just broader kind of economic activity and what you're seeing in your book? I mean, we know that you have a large California contractors exposure. What are you seeing in terms of maybe not the job they're on, but the next job, those sorts of things? Just any ...
So we do not have a lot of insight into what's happening specifically within the California economy. We are hearing that things are slowing in California. And of course, if that happens, that will have an impact on us. But so far, we haven't seen a lot of change associated with a change in the economy.
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929021a7f879650c9d0d3b4f47058bb2
OK, great. And then, last question, can you talk a bit about just the pipeline for -- you mentioned some of the partnerships that you, I think, had already announced and starting to come on board. How is that pipeline looking for continuing to add new partnerships going forward?
By way of just memory or just going back a bit. In the third quarter, when we talked last quarter, we talked about the fact that we had added four programs for the year through the second quarter, and that we were working on to up to five more in the second half. As respect to those five programs that we were working o...
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A
79abfbdec8c5b1fe03787ef42c2920de
Hi, good evening. I wanted to just talk about the expense ratio. So it came in at 25.1% this quarter. A little bit higher than where I was expecting. Julie, you mentioned you expected the expense ratio to run a little higher as you invest in the business. I guess, I'm just wondering what your outlook is for next year? ...
Right now, we are expecting that. It might tick up a little bit as we are retaining more business. One of the items that's included in our G&A expense is our commissions. So as we retain more business, our seating commission is reduced and that's a reduction to the commission expense. So you'll see our G&A will tick up...
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A
c487a27cd8486b12a21d3e443ff8b5be
Right. So the combo of those, you're still comfortable getting to like 21%, 22% for next year?
At this time, we are.
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A
224016f9340c4181ded11df991400b80
OK, great. And then, if I could just ask, Andy, just a follow-up on the workers' comp side, just on the -- what you're seeing from a claims frequency. And I know last quarter, you had indicated that you didn't let potential frequency benefits come through results some of your peers have. I'm just wondering, is that sti...
We have not recognized favorable development yet in our financial results other than the small number that Julie mentioned during her introductory comments. And so that is something that we are looking at this quarter, and we'll make a decision at the end of this Quarter 4.
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A
53850114ac4618cc02215dd26f68581d
OK, got it. And then, Andy, if I could just sneak one more in. Just wondering, just to get your comments on the workers' comp pricing environment, the rate environment. Whether you're seeing rate levels bottom out here start to improve, sort of what you saw in 3Q and what you're seeing so far and what your expectations...
Yes. We have not seen great levels drop appreciably so far in this quarter and really for the year. On the other hand, we haven't seen much of an increase either. So I hope that that means that we are bottoming out. We think that there's still a lot of competition for rate on larger accounts. And right now, we are disa...
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A
4425947099700d35b5952e317769c419
A lot of my questions were answered here. But a question on other revenue up quite a bit, I guess, above what you I think had initially expected. And is that just driven by the new program partners coming on? I mean, I think a lot of that's reinsurance brokerage, if I'm correct. But could you maybe just talk about that...
Yeah. So part of it was due to the new programs that we onboarded. And then, the rest of it is related to the new accounting standard. So you're recognizing the revenue on the effective date of the contract for reinsurance. And so that requires an estimation of what that premium is going to be. And so, and then, you're...
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A
7119ff0f5d80b09ebb9380d2a79bb1e2
OK. And then, just on the investment portfolio, just the cash and cash equivalents, obviously, are pretty high. Are you rolling those into fixed-income securities? Or how should we think about that?
We have not -- our investment portfolio is very conservative. We've always taken the position that we are primarily in the underwriting risk business. And therefore, we wanted to take our risk there rather than to be aggressive on the investment side. The investment returns are very disappointing right now. Interest ra...
intermediate
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B
e9eb28fdecc5ea8225bccab5f3e3ed37
Good morning, Ivan and Paul. Thank you for taking my question. It strikes me a lot of lot of positive things in your report, but it strikes me as if I had to pick one highlight in the quarter, it would be the Structured Business volume, $2.8 billion, took the portfolio up 16%. That wouldn't happen -- that business woul...
Sure. So clearly, the last CLO we did of $2 billion was very sizable, and it was important for us given the volume. I think if you look in the, I think, commercial observer or one of the rags, we actually -- there was a CLO that was just price. We really can't speak about it, but it's in there. We're an active issuer o...
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3d69a3a1b8640c18c525a75af8443bbd
OK. The average -- the spread there was LIBOR plus 181, and that was flat to the CLO 17. Do you expect that, that is where the market is today and will kind of remain in that near 180 basis point range on a weighted average?
No, not at all. The markets widened up considerably. In fact, we've raised our pricing to our consumers, I think, five times since December. So we've increased our pricing five times to match where the market is. And basically, each price is an eigth increase, and we've also adjusted our credit guidelines considerably ...
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A
82bc0486e9c2b872ccd6ce59480a4fe4
Great. And your SFR product and your BFR product, do I understand that you are putting those loans into the same CLO program that you do with your traditional bridge loans?
On the exit but not on the aggregation aspects. When it comes to the construction, what we'll do is that's done on a separate line. Some of the loans on the bridge side, once they're stabilized, they'll be going to our CLOs once they fit multifamily characteristics.
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A
e6b4974b87f18d88152a34be778263a9
Got it. But during the interim, because of the complexity of construction draws and everything, that's your take -- your CLOs, your takeout once you're past your development construction period.
Once they were to stabilize -- once they were stable -- once the units are up and running and get leased up, yes.
intermediate
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564bcd3255c01bcd32c1e067aebc3068
Hi, good morning. Ivan and Paul, you guys have both touched on this a number of quarters in a row and would love to get updated thoughts. And I think, Paul, you touched a little bit on your prepared remarks, but kind of early repayments been running pretty high the last few quarters. Kind of curious what you're seeing ...
Sure. So let me give you some numbers, Steve, and then I'll turn it to Ivan to the market color. You did mention, I should address some of that in my prepared remarks. It still continues to surprise me that -- the level of prepayments we're seeing. There's still a lot of sale activity in the market. Prices are still el...
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A
0b022fe679029ac6e346bea6fe263c34
Thanks. Good morning, everyone. My first one is on the originations trajectory in the Structured Business. I think last quarter, you were talking about $1 billion per month or a little bit less than that. So just curious if you could provide an update on what you're seeing currently and then also how that could impact ...
Sure. Well, clearly, we're the market leader on providing bridge debt in the multifamily sector. And even as we continue to raise our pricing, I think we had two price increases over the last 14 days. We're still seeing originations at that similar level of about $1 billion a quarter, which is where we're kind of manag...
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0c43c007239be0d21ec880c404a3ef36
Great. Thanks, Ivan and Paul. That's helpful. And then just one on gain on sale revenue. It seemed like it was significantly lower in the quarter sequentially. Can you speak to what drove that? Or if there are any noncore items there that's driving that or if there's just something that I'm missing there?
Sure. So let me take you through that. So first of all, you got to look at it as two line items, Crispin, on the P&L that you've got to combine a little bit, and we do it in distributable earnings to help you guys on a rec. So the gain on sale, fee-based services and gain on sale item did look really low, but then you ...
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4826db00e5cc54ce2d1bc9698769b242
Thank you very much. Volumes continue to remain extremely strong in the market. And at this point, do you think that's a function of investors rushing in to capture current interest rates before there's future increases or something else that's driving that?
I think the multifamily sector seems to be one of the most resilient sectors, and I think there's just a lot of investor demand in this sector. We're seeing that also in the build-to-rent sector as well. Those are just two sectors that continue to drive a lot of equity, and the sales from what I hear in the first quart...
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B
651c270d5f1e7f59c6265b78d0a65c3a
And in that gap, widening, do you expect there's going to be multifamily cap rate widening? Could you put some parameters perhaps around the magnitude that you're thinking about?
Yeah. Contrary to everybody else, we've been very much anticipating inflation and a potential recession, and we've underwritten cap rate expansion to about 50 basis points from where it is today, heavily criticized for, but that's our position. We believe that as rates widened and rent growth slows, you'll see a bit of...
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00f8ba42afaedc395495e70ec56bab49
Thank you. On the $500 million of runoff you saw in April, 35% of those went into agency. So those refinanced from a bridge product into a fixed rate product with longer-term duration. What does the other 65% do in your insight?
Yes. Most of it -- so you're right, 35%, and most of that 35% was a large deal that we had on the bridge side that we were able to take out in the agency side, which is great. The rest of that, for the most part, were sales that walked away. And so we didn't recapture the rest of that because it was mostly as a result ...
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be2565a72e4a31f33404a861417bcf27
Just a strategic question. The platform, the company overall has grown tremendously over the last multiple years. There's a cohort of mortgage REITs that you could argue are subscale in the market trading at discounts to net asset value or book value. Would acquisitions, M&A ever be something of interest? Or do you bel...
I think we've always had a history of M&A. We haven't done that much over the last couple of years only because we think the pricing in the market has really been a little bit inappropriate for -- to be accretive to the company. I think now as we go into a different cycle, there may be some opportunities to expand our ...
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458e96211153488e7c6984dc1ed9cbae
I have one with respect to the second Friedrich's Ataxia Phase 3 trial. Could you comment on how that study may potentially differ from MOXIe Part 2 and will the data and learnings from the delayed start analysis that you did for MOXIe Part 2 impact the design of the second FA Phase 3?
I think, yes, the prior MOXIe Part 2 data plus the delayed start analysis, as well as our baseline controlled study will inform the next design. And so we need to have discussions with FDA to determine specifically what we would need to do to fulfill the obligations in order to get the approval. And so I think we'll pr...
intermediate
[ "direct", "intermediate", "fully_evasive" ]
B
a42c4a50a33994a0271ec83c09133345
With respect to the increased enrollment in FALCON, can you just comment on whether that was an internal decision or was that the result of any FDA feedback or possibly seeing any of the pools and blinded data that would suggest that the variability is greater than you previously anticipated?
It wasn't in response to FDA feedback, it was directly in response to what we observed in variability in the year two of the CARDINAL study, and which, may be related to the pandemic environment that we're in. And so we felt it was simply prudent to increase the sample size to preserve the statistical power if we obser...
direct
[ "direct", "intermediate", "fully_evasive" ]
A
ffcf1d01e7fed8ddf90bf1eded79ad6f
First one is going to be Friedrich's Ataxia too. Just wondering if we can get a better sense of if you could still file for approval after the Type C meeting and prior to running -- and prior to running the second study. I guess, can you run through possible scenarios for outcomes from the Type C meeting?
Obviously, the position of an agency has been to date that we need to increase the persuasiveness statistically of the result or we need to provide additional data from the long-term extension or perform a second pivotal study. The purpose of the Type C meeting that we just requested, is to put that question directly t...
direct
[ "direct", "intermediate", "fully_evasive" ]
A
b5aef8070cc16e24ce3d7891597a7572
Just to clarify for the ongoing FALCON study, are you seeing anything with dose reductions, discontinuations, or anything else from the study that would also provide some reason to upsize that study?
There's no data that would suggest that we need to change our assumptions, or dropouts, treatment factor or anything else. It's solely based upon the variability from the CARDINAL trial, and Alport Syndrome. As Warren said, we noted a higher variability or standard deviation of change in an estimated GFR in year two of...
direct
[ "direct", "intermediate", "fully_evasive" ]
A
4a583eb08e9cb2a7eb3a00f1b8979b12
Can you talk about what specifically you're doing to address the discontinuation from the ASP and ALT in the ADPKD trial, it seems to be a big question among physicians to control the discontinuation? And then follow on Omav, what is it specifically, do you know that the FDA would be looking at to determine whether it ...
We believe that the analysis that they suggested is based on guidance that they've given for these type of analyses in the Alzheimer's setting. And basically, what you're looking for is to see that the patients that crossed over to the long term extension study from active basically maintained a benefit over time, vers...
direct
[ "direct", "intermediate", "fully_evasive" ]
A
2f215e617fa9a5cf57ba8c9a85564572
My question is really on sort of the differences across the different populations and how we could kind of think about the results from FALCON with the increase in enrollment size. We've seen in BEACON and we've seen in CARDINAL at least some sort of numerical benefits in terms of progression to end stage renal disease...
We predefined it in CARDINAL because we thought it'd be helpful to characterize the composite is now used in trials like our Japanese partners on the trial. And so we don't -- we're not changing the size so that can be power for that endpoint. But it would potentially increase our chances of showing statistical separat...
intermediate
[ "direct", "intermediate", "fully_evasive" ]
B
fb32a6f47d14a02fb06164fa6af31046
In terms of the Type C meeting, can you give us a little bit more color on that timing and would you wait for the meeting minutes to be able to disclose what you plan to do and I saw in your press release that you plan to start a second study in the second half, when do you think you could operationalize that, just a l...
We can't comment on the timing in fact we don't normally comment on the exact timing of the meetings but we have submitted the meeting request. And then what we say publicly after the meeting really depends on and how could we do that depends on what we hear. If something is obviously very material, then we generally r...
intermediate
[ "direct", "intermediate", "fully_evasive" ]
B
9f408e7094c76268d0330199e49acd30
I was wondering if you could talk about the patient inclusion methodology and criteria that you propose to the FDA for your proposed Alport indication in the NDA for bardoxolone? And how many patients with these characteristics would you estimate are addressable at the sites that you're targeting or focusing on for com...
We think that the label would likely, in general, reflect the patients that we enrolled in CARDINAL. And so there's a broad age and GFR range, the call that the eligibility criteria where age as low as 12 highest 70, eGFR 30 to 90, above 90 is basically normal. And we enroll patients with all genetic subtypes. And then...
intermediate
[ "direct", "intermediate", "fully_evasive" ]
B
ff3d194a740737ebc94a931340e8fe67
Wondered if you could give us more information in terms of your strategy with the launch of the MERLIN study and rapidly progressing patients with CKD. And in the context of your plans to initiate additional studies in other CKD indications which you studied before, in terms of IG nephropathy, Type 1 diabetes, and FSGS...
As we've demonstrated, you know, in Phoenix, and Cardinal elites observed activity in multiple forms of CKD, it's six or seven now. And we decided to pursue Phase 3 studies with two of those indications, obviously -- first and ADPKD second. When I actually think about how we progress further with development, there's r...
intermediate
[ "direct", "intermediate", "fully_evasive" ]
B
b49d74fd2ff3bb9128224f4fc5be73fa
First of all, on the cost-savings plan, can you talk some more about on the operations side? Are these sort of short-term emergency measures or more sustainable cost reductions? And how much of the pull-forward cost-reduction plans we already planned on? And on the capex side, what sort of capex we will previously look...
On the cost-savings side, we've been quite prudent about it. It's not something that's extremely aggressive. And we looked at both our capex and our opex. So an example, on the capex, cuts would be something would be like towers. We've already expanded all of LTE migration, and we save you know what, there's probably 1...
intermediate
[ "direct", "intermediate", "fully_evasive" ]
B
8dff625ffc45592c133f0a1a36e69a42
Just on the I guess we're all trying to gauge a sense as to where revenues are going. You were guiding to cash flow of USD150 million, and you're now sort of hoping for growth, which is a delta of maybe $150 million, and then you're looking at savings from capex and opex of $150 million. So is it right to think that pe...
I think everybody is going to try to do the backward math to get to our revenue numbers. We've modeled quite a few things. And I think it's not going to be that simple to model it back, one, because we really don't know how it's going to play out. We have I'll tell you internally, we have what we think is going to play...
intermediate
[ "direct", "intermediate", "fully_evasive" ]
B
2a07deeb296f2de345005938b459f5b4
I'm curious if you can kind of go back to the history that you've seen across your businesses. How does the unemployment rates in these different countries affect businesses and payments by those customers for your products, maybe just to get a sense of the sensitivity to the economy relative to the behavior? And then ...
On your first question on the unemployment rate, of course, unemployment will affect buying power, but this is how I would look at it. We the business that's probably more sensitive to that is our prepaid business. And prepaid, it's not a huge part of our revenue stream, but it's about 2/3 of our mobile revenue stream,...
direct
[ "direct", "intermediate", "fully_evasive" ]
A
3807f8924efdffffe901d19744e71f88
Firstly, you have some aggressive deal-making DNA with your most well-known shareholder, to say the least. And even right now, I mean, you're seeing dislocations of some of the blue-chip public companies, major holders of telecom assets in markets like Mexico. I mean, the stock prices are not even at the '98 Russian cr...
There's quite a few questions in there. Let me start with the M&A side. Of course, we are on the lookout for any dislocation and any opportunities. Ray Collins was closely with me and I work closely with him. We are on the lookout, and we talk to everybody, and I think anybody that has a good idea and know that they ca...
intermediate
[ "direct", "intermediate", "fully_evasive" ]
B
b04cf04fa61446bec997f3c22cd68c76
Governments throughout your footprint have taken different approaches to maintaining mobile and fixed service for those impacted by COVID. You mentioned lifeline in your prepared remarks, payment concessions. It seems there could be further regulatory or legislative actions in certain of your markets. Could you discuss...
Sure. John Winter, my General Counsel is with me here as well so maybe ask him to comment in a second. He's done, by the way, a great job in managing all these relationships and expectations with governments. And I think we've been very clear to them that we're here to support them. We're here for the economy. We're he...
direct
[ "direct", "intermediate", "fully_evasive" ]
A
b2c2b8d9ab2819a9c8baab5aafc26f42
So our question is, given COVID-19, how do you see the competition's response to this crisis in your market and especially in Panama and Jamaica, which were cited in the earnings release as markets where our competition has been affecting it at?
Sure. I'll ask Betzalel to also think through an answer for that. But so far, I think competition has been very rational across the board. You point at Jamaica. We compete with Digicel there. And Digicel, they've been very rational. They're going through some of their debt issues right now. But they I think they'll get...
direct
[ "direct", "intermediate", "fully_evasive" ]
A
f13c0251b6ec8ea2009faa9841cbc822
Hey. Good morning, guys. Appreciate all the comments on '22 and what you're seeing across your basins. I think we've just already seen a really robust start to the year in the Williston and you talked about the 110 to 120 in connects this year and the one to two rigs. I think just given the current pricing environment ...
Thanks for the question, Tristan, you raised an issue that we have been talking about daily over the last couple of weeks as we finalized our plan and presented it to the board. There's a fairly wide range on EBITDA and capital because we still haven't gotten our arms around all the third-party opportunities that are a...
intermediate
[ "direct", "intermediate", "fully_evasive" ]
B
629e957c8aabe488b32b58c2110c620e
I appreciate it. Thanks, Diaco. And then just a follow-up in the Delaware. You talked about significant growth in 2022. Could you talk about maybe near term and long-term road map for processing capacity for your JV in the Permian. Some of your peers have talked about a strategy to use third-party offload, but then oth...
Yeah. Thank you, Tristan. On the near-term side of things, we've got sufficient capacity to meet our customers' needs in the current year. We are already looking at offloads ourselves, and we've got some partners out there that are more than willing to consider our expanse of our footprint. We've got north of 100 close...
direct
[ "direct", "intermediate", "fully_evasive" ]
A
ea90a69f732d25523a5a50abf01f8383
Hi. Good morning, everyone. Maybe following up on the Williston first. You did highlight your planning for about 110 to 120 well connects. Can you provide any color on maybe the cadence of well connects or maybe exit volume year over year?
Yeah. Sure, Kyle. When you look at the Williston Basin, the Oasis footprint is fairly back-end loaded. There's some capital. The capital we're deploying there is actually extending the backbone to the West. So you'll see a bit of a second, third, fourth quarter, more third, fourth quarter ramp over there on all three p...
intermediate
[ "direct", "intermediate", "fully_evasive" ]
B
2a191619f9ac66fda438f376160f0a6c
Got it. OK, that's helpful. And maybe following up on that, I was looking through the slide deck, and it looks like on Page 11, it shows growth capital looks a little bit higher in the second quarter. So I guess my first question is, is the higher spend in 2Q? Is that building out to the West or is there something else...
Yeah. I'll take that one, first, and I think you hit the nail on the head. I think as we outlined our capital and in a couple of pages after that, you can see kind of the breakdown by basin. But a meaningful majority of this capital is being spent in our G&P North segment, predominantly in the Williston Basin to really...
direct
[ "direct", "intermediate", "fully_evasive" ]
A
433dd2c3b4850133893936f3e7c89fa8
Thanks, management, for taking my question. I have a question regarding your business model. So, can management elaborate a bit more on the synergy that you mentioned during your prepared remarks between the direct and the network partner models? Does the company have any preference between the two models during COVID ...
Thanks, Charlie. I will take this question. Our service network expansion has always been driven by both the direct and the network partner models. Historically, our direct operation model generally focused on the higher tier cities, while our network partner model focuses on the lower ones. For our direct model, we w...
intermediate
[ "direct", "intermediate", "fully_evasive" ]
B
f84be309c262a9c703ad30592d802663
Good evening, management. Thanks for taking my question. So, will management provide some color on the monthly performance in the second quarter? And by merchants categories, does management notice any of the recovery trends of different merchants, to say, such as catering, cinemas, and other spots?
Sure. Thanks for your question. The general environment has been challenging due to continuous impact of COVID on our operation both in first and second quarter of 2022. I have to say that the second quarter so far by end of May is even worse, compared to the first quarter. Most notably, the outbreak in Shanghai, beca...
intermediate
[ "direct", "intermediate", "fully_evasive" ]
B
d9962e9f6dac1dd51750576fe8bac4b8
Thank you. Hi, Mars, Maria, and Hansen. I asked that, can you give us more insight on the competitive environment in the first half of this year? And how do we anticipate the incentive fee rate going forward into the second half?
Thanks. I will take your questions. In terms of the competitive environment throughout 2021 and in 2022, we are seeing a general decline in competition int he direct model, as our peers within the industry continue to significantly scale down their direct operation personnel. We currently operate the largest and the mo...
intermediate
[ "direct", "intermediate", "fully_evasive" ]
B
89c74c72a2e661857de4d84ca1aaf26d
Hey, Jim. Thanks for taking my question. I guess I wanted to touch first a little bit on the commentary around macro here. The software product numbers are pretty good, you're still highlighting pretty solid product growth for the year. I guess just a lot of color on sort of what are you seeing from customers, is it EM...
Sure. So when we are -- when we're talking about the macro side, I mean, honestly I'm seeing or sensing, if you will, slowdown in the automotive industry globally for sure. We're not actually seeing an impact to the strength or pull for software actually out of that market. It's more a little bit of conservatism, but m...
intermediate
[ "direct", "intermediate", "fully_evasive" ]
B
cdc3fd5d75c6217682efc65dc845eb53
Hi, this is actually Francois on for Gal. We just had a question about the lowered guidance. Is there any way you could quantify or roughly speak about how much of the decrease is coming from each of the factors, the lowered currency, subscription transition and conservative views on manufacturing? And I just have one ...
We're -- the short answer is, we're more comfortable with kind of a collective view rather than pegging a dollar amount to each of those particular factors, but clearly, there is a significant element of each that we bake into the guidance, but I think it's important to note that notwithstanding the contributing factor...
intermediate
[ "direct", "intermediate", "fully_evasive" ]
B
7b415231567080d6bdeb5059d90992c4
Can you talk about the margin expectations for next year? In very general terms, what are the puts and takes assuming no further currency headwinds?
Yeah. So Martin, on a constant currency basis, we'd expect to be at the low end of our operating model which is 40% to 43%. On an actual results basis, it's going to look a lot closer to the guidance we provided for the fourth quarter, so mid 30s plus or minus around that I would think just given currently what's going...
direct
[ "direct", "intermediate", "fully_evasive" ]
A
2b791bacf8770bb369a722b9cec4f7ab
GoPro Mini, is there any early signals you can get versus from reviews, from maybe core customer feedback on the mini and whether or not mini's delay has any meaningful impact on your 4Q guidance?
On the guidance question, no. As we've talked I think on the last call, our expectation is that mini would be from a cellphone perspective in the fourth quarter I think number four in the lineup and HERO11 will be the best, HERO10 I think nine and then mini. So that's been our expectation and we expect that to hold. I'...
intermediate
[ "direct", "intermediate", "fully_evasive" ]
B
1bf772207be1b261a3152b8dafb838ef
You've been hearing about the electronic stores working down consumer electronics inventory levels. I know GoPro.com has been a great success, and you've been able to manage your inventories there a little better. Just wondering about your external inventory levels, how are they, what are you kind of hearing? And I'm s...
Yeah. Jim, this is Brian. Let me comment on big box retail. In the third quarter, they reduced their inventories along with weeks of supply on a year-over-year basis. Their on hand inventory declined about 25% year over year, so they're definitely bringing them down. And I mentioned that in my opening remarks that the...
direct
[ "direct", "intermediate", "fully_evasive" ]
A
c515c13b915a0071aa7019c11e97d3e9
And on your opening comments, Nick made some comments about of course focusing on cash flow. But what caught my ear was the increase in subscriptions and market share. To do that, does it take like more employees, more assessments, reshuffling? Are those bodies already in place, because you have seen great success with...
No. If you -- and Nick can comment maybe on top of me. We expect to be 2.2 million subscribers by the end of this year. That's up 40% over 2021. Another thing we pointed out is retention of our annual subscribers who make up 85% of the total subs has improved about 5%, actually better than 5% from this time last year ...
intermediate
[ "direct", "intermediate", "fully_evasive" ]
B
ff2091ecf7789609ab506a5333d3a2cf
Now that you've launched all of the new flagship and derivative cameras, can you maybe just elaborate on why you changed your strategy? Was it something in the data? Was it something that you thought was kind of low hanging fruit? I just love to kind of understand now that you can look back, what the driving force was ...
Well, what we learned before -- what we learned through customer research was that people -- what we thought before was people just broke into categories of different price sensitivity. You have your entry-level buyer, your value buyer who wants to buy last year's flagship at a discount, and then you have your tip of t...
intermediate
[ "direct", "intermediate", "fully_evasive" ]
B
8d44e9c4763c1e49cbcd494a852b4437
You've obviously alluded earlier in Q&A and in your prepared remarks to big box retailers reducing inventories and weeks of supply. I'm just curious if from your seat, is there more inventory reduction to come or have we seen most of it, and now it's just kind of waiting for whatever reorders might come? And then any o...
In our prepared remarks, I did comment that our sell-through in the month of October was right on track to where it needed to be. So that's been a positive. It's great for -- our demand planning team has been doing a heck of a job predicting what our demand levels would be. And again, they did it in Q3. We're able to ...
intermediate
[ "direct", "intermediate", "fully_evasive" ]
B
0c619f6a2bb6f212d339d6ce09b01a02
Apologize if I missed this, but did you comment on fourth-quarter bookings, how that came in relative to what you had in the last couple of quarters?
Yes. We did. As Jeff mentioned, it was our strongest fourth quarter ever.
direct
[ "direct", "intermediate", "fully_evasive" ]
A
f02498394117c4e3bc06a2f657128f95
How much did kind of virtual live events contribute to the bookings?
Yes. We don't really break it out on a product-by-product basis, but we had a good mix of virtual events, our Beacon products and then our legacy products with video conference.
fully_evasive
[ "direct", "intermediate", "fully_evasive" ]
C
a7977082001d2a174c4c6803ada643a1
As you think about growth this year, can you give any color on the relative contribution of, say, ARPU growth versus new customer adds? Any -- is it going to skew one way or another here?
Yes. We're not really optimizing for the customer count growth. So I think it's going to be a good combination of both as we head through the year, particularly in the back half of the year as we start seeing the benefits of our renewals business improvement.
intermediate
[ "direct", "intermediate", "fully_evasive" ]
B
ac28f5b51a95fc7ff71fc3a2c8ae5f95
You mentioned that the channel started to make a solid contribution, I believe. I guess can you give a little more color on channel contribution in the fourth quarter?
Yes. As we talked about on the call, it was about 20% of the bookings in the fourth quarter. And as we go forward, we're trying to get that into the 30% to 50% range in the future. We believe there's real opportunity with the channel to grow the business and reach markets that we might otherwise not with our direct sal...
direct
[ "direct", "intermediate", "fully_evasive" ]
A
47c4adc7a11339f0e58386cbf3be6dee
The largest customer is still about 2% of revenue?
Yes. That's right.
direct
[ "direct", "intermediate", "fully_evasive" ]
A
04ad2a831e3d57c82a3b623294809df7
Obviously, retention rate was surprisingly strong in the quarter after the cautious language you'd given the last couple of quarters. Could you give us some insight as to whether that was driven by some big upsells? Or what's the dynamic there that led to the outperformance? Or is it just a timing issue when the things...
There was some timings and just some mix and the ability of the team to upsell. But as I said, I'm not going to feel good about the predictability and the consistency of our renewals until we get into the second half of this year. That's when I believe we will have this under control.
intermediate
[ "direct", "intermediate", "fully_evasive" ]
B
5f336340d0c99a77a374a913dcb62f59
And a big step-up in ARPU, which was another thing that pops out in the quarter, is that driven by a couple of large deals in particular? Or is that just the way the team is executing now that these engagements are more meaningful than they were six months or nine months ago?
Yes. Steve, that's really driven by one large deal in the quarter. In the script, we talked about the $1.2 million of revenue in the quarter from a live event. And that's really what's pulling that ARPU up.
direct
[ "direct", "intermediate", "fully_evasive" ]
A
599f74548ed332e24ce4adf8e202dbc6
And then the Rule of 30, is that something you still desire to do by that March deadline that you have? Or do you think it takes you longer to get there?
Yes. It's a -- absolutely, it's our goal. I don't believe that we deserve the right to say we're a high-performing SaaS company until we cross that and then pursue the next target. I'm not going to put a date on it. But as I've said all along, we're treating that with the greatest level of urgency. We pay attention to ...
intermediate
[ "direct", "intermediate", "fully_evasive" ]
B
06e55d75ef3c0d4ac2f54e5214308909
Do you see any meaningful change in your mix between media and enterprise customers as we go through this year into next year? Or are you indifferent as to where the customer comes from?
Well, I don't -- I wouldn't call it indifferent. I love all our customers. And there's awesome opportunity in media as well as in enterprise. The power of media, and I think sometimes it gets a bad rap because there is a move in giant media to do more DIY. We've been living with that, and we're not out of the woods yet...
intermediate
[ "direct", "intermediate", "fully_evasive" ]
B
b0c18af9ae332b6baa46d4d7eae22e02
A question about your outlook for the pro services revenue. I've been modeling that at about $10 million a year. And it looks like, at least for Q1, we've got $3.7 million and then you're looking at $12.5 million for the year. Wondering if you could give me a little bit more detail on what's going on with pro services?
Yes. So two things. In the first quarter, it's really related to one large deal that we closed that's going to be delivered this quarter. And then as you think about professional services on a go-forward basis, while it's not the core component of what we do. We are a SaaS business, but we do believe that professional ...
intermediate
[ "direct", "intermediate", "fully_evasive" ]
B
670f61d4f7cd4a926022bf7804a08f8a
Curious to know if there was any change there. I think historically, you've talked about kind of shooting for a 10% on the pro services. And then I think it was 66% or a little higher on the software and services. What are you thinking about for the year-end gross margins?
Yes. So on the professional services side, we're thinking low to mid-teens from a margin standpoint, as we've talked about, that is an area that when Jeff and I started wasn't being run profitably, we are going to continue to run that profitably, but we don't see it as a huge margin driver. As I talked about, our purpo...
direct
[ "direct", "intermediate", "fully_evasive" ]
A
ed606699713726419144f2fb89db3aab
I just want to touch on your holding company cash of $1.7 billion. Do you anticipate the need to downstream part of that amount back to the operating companies? Or is that amount truly fungible? I did hear your comments about a positive credit trajectory.
Yes. So when you think about the $1.7 million of cash, that sits there and actually is for our use. When you think about the overall course of our capital plans for the year, as we talked about at year-end, everything is contemplated in that. What we would have said at year-end is that we would expect the year to end i...
direct
[ "direct", "intermediate", "fully_evasive" ]
A
63f37f054effb43186aa4e915c0988e6
Okay. So I guess my follow-up is also at that outlook meeting, you mentioned potentially having to hold some of that capital for upcoming C1 charges that were going to come in this year? I think it may be next year. So any update on that thinking?
We did talk about at the outlook meeting that, that was -- as we roll forward the year contemplated in that $1.5 billion roughly at year-end was a C1 factor change, which was in the range of $200 million. We're not sure if that will happen now. So you can still consider that to be part of those plans. But that number i...
intermediate
[ "direct", "intermediate", "fully_evasive" ]
B
4d78f05bf1536cad3df00786bef49a32
Can you talk about your assumed path to margin normalization across different product lines? It sounds like group life could have a little bit of a longer tail as the pandemic impact shift to a younger population. But what are you assuming for disability, critical illness, LTC, etc.? And are there any areas where you'r...
So that's a pretty broad question. So we'll start and dissect across a number of our lines. And what we're seeing, I mean, many of our lines are actually continuing to perform pretty well. So we see no change there. Certainly, some that we talked about, we -- we're going to see a reversion back here over the course of ...
direct
[ "direct", "intermediate", "fully_evasive" ]
A
9b744fb0ff14fee002f30dd6e655a5bd
Got it. And anything on the sort of voluntary products, where I think there may be some benefits from lower utilization on things like the accident policies or maybe even a little bit uncritical illness. Anything notable you're seeing there?
We're actually -- Erik, this is Tim. Thank you for the question. We're not really seeing anything different than what Mike and Steve described in our experience in the voluntary benefits lines. It's less pronounced in our -- in the voluntary benefits business, but we see the same trends developing over time.
direct
[ "direct", "intermediate", "fully_evasive" ]
A
6ee29ee4eb27dd56d975bd5eafdaa9b0
Thank you. And then maybe returning to sort of Tracy's question as well on kind of the excess capital. It sounds like something where you're thinking over the next quarter or two if -- I mean, we continue to see improvement in the environment that you may be in a position to start thinking about deploying that? And I g...
Yes. So Erik, I think it's a fair question. I think as we still are coming out of this pandemic period, we're going to evaluate all of our options that are in front of us. And I think as we've always said, we have good capital flexibility at our disposal. We're going to make sure we put that right back into our core op...
direct
[ "direct", "intermediate", "fully_evasive" ]
A
b83d6e9001e1d72eaf566cde3b31e91c
What was the -- let's start with the long-term agreement. What was the impact of the agreement to EBITDA and net income in the quarter? How does that $11.7 million kind of flow through?
So, we look at that as really flowing through at our average rates for the year. They'll be in line with that as the contract flows through the P&L.
intermediate
[ "direct", "intermediate", "fully_evasive" ]
B
ed6f3684c458b97576a8b85bbc55a8a9
But for the quarter, like, what did the $11.7 million contribute to EBITDA net income for the quarter?
Fairly low, fairly marginal impact. Again, the contract, as it flows through the year, will be at our average rates. But for the first quarter, where we get a little bit less profitability due to the fact that we're getting revenue on the work we perform through the process. But look, it's -- in the end, we see this do...
intermediate
[ "direct", "intermediate", "fully_evasive" ]
B
117e03e7a31bf6267aac2655dd2bd7c0
OK. Excellent. And then as you've gone through and conducted the lean diagnosis, are there common issues you're finding in the plans? Is there a low-hanging fruit in certain areas?
Absolutely, Matt. There's a wide range of operating opportunities in each of our sites. We -- last summer, or the first half of 2018, Jen led an assessment of all of our 15 operating -- 15 manufacturing sites. And there were absolutely themes that came through in that assessment. As you can imagine, some sites are more...
intermediate
[ "direct", "intermediate", "fully_evasive" ]
B
792599e67ba8749275c658682c12bc2c
OK. And then you've seen some deceleration in neuromodulation growth from some of your customers. Could you comment a little bit on what you guys are seeing? I mean, it was really interesting to hear that you're seeing increasingly strong revenue from early stage neuromodulation. Are you seeing some of the private guys...
Well, first, let me start with we're obviously watching and hearing all the results for the first quarter. And our view, I, think is quite consistent with everything we -- you've heard from our customers, in that the long-term prospects for neuromodulation remain very positive. No one's view has changed on that. There'...
intermediate
[ "direct", "intermediate", "fully_evasive" ]
B
005fd3dba7f6de7188d98512e10a55ad
All right, that's very helpful. And then last one, and then I'll jump back in the queue. You were talking a little bit about M&A last quarter. What does the pipeline look like for M&A? And how active are you in that at this point?
It's incredibly active, and it's a long list of opportunities. I'll just reiterate what we talked about on the last call. We are not looking for revenue. We are not acquiring to get scale. We're looking for very specific targeted technologies and capability that will allow us to accelerate the penetration into the fast...
direct
[ "direct", "intermediate", "fully_evasive" ]
A
d4631e559385f5977163e234c043e53f
Great. Great. So, back to the signing of the agreement and that $11 million boost in the quarter. Will that impact your second, third, and fourth quarters? Should those numbers come down a little because you recognized that revenue in the first quarter?
No, Jim. That lumpiness is what we saw -- the lumpiness we saw in the first quarter is really the transition to this new contract, and we don't expect any meaningful variation to the future quarters as related to that.
direct
[ "direct", "intermediate", "fully_evasive" ]
A
5b78c51f16b16ee72b03201e6db9744c
OK. And then one more on that. I saw your accounts receivable kind of ticked up a little bit. Is that import due to the -- recognizing of that net revenue?
No, actually, we classified that in prepaid, so that's there. I mean, we've got several things going on with AR, but I mentioned it on -- just a minute ago that if you look at our first quarter, we ended up with a dynamic where we started off a little bit slow and we ended up with a lot of sales in the back half. And s...
direct
[ "direct", "intermediate", "fully_evasive" ]
A