Bioventus Inc — Earnings Call Q3 2026

Operator: Good afternoon, and welcome to the Bioventus Third Quarter 26 Earnings Conference Call. All participants will be in listen-only mode. Please signal a conference specialist by pressing *0 on your telephone keypad. After today's presentation, there will be an opportunity to ask questions. To withdraw your question, please press *2. Please note this event is being recorded. I would now like to turn the conference over to David Crawford, Vice President Investor Relations and Treasurer. Please go ahead. David Crawford: Thanks, Jerome. Good afternoon, everyone, and thanks for joining us. My pleasure to welcome you to the Bioventus 26 third quarter earnings conference call. With me this afternoon are Robert Claypoole, President and CEO; Mark Singleton, senior vice president and CFO. Robert will provide an update on our 2026 priorities, and the third quarter highlights, and then Mark will review the third quarter results and discuss the update to our 2026 financial guidance. We will finish the call with Q&A. A presentation for today's call is available on the Investors section of our website, bioventus.com. Before we begin, I would like to remind everyone that our remarks today contain forward looking statements that are based on the current expectations of management and involve inherent risks and uncertainties that could cause actual results to differ materially from those indicated. Including the risks and uncertainties described in the company's filings with the Securities and Exchange Commission. Including Item 1A Risk Factors of the company's Form 10-Ks for the year ended December 31, 2025. As such, factors may be updated from time to time in the company's other filings made with the Securities and Exchange Commission. You are cautioned not to place undue reliance upon any forward looking statements which speak only as of the date made. Although the company may voluntarily do so from time to time, undertakes no commitment to update or revise the forward looking statements, whether as a result of new information future events, or otherwise. Except as required by applicable securities laws. This call will also include references to certain financial measures that are not calculated in accordance with U. S. Generally Accepted Accounting Principles or GAAP. We generally refer to these as non GAAP or adjusted financial measures. Important disclosures about and definitions and reconciliations of those non GAAP financial measures to the most comparable measures calculated and presented in accordance with GAAP are available in the earnings press release on the Investors section of our website, bioventus.com. And now I will turn the call over to Robert. Robert Claypoole: Good afternoon, everyone, and thanks for joining our call today. Bioventus continued to build on its positive momentum in the third quarter. Delivering a solid financial performance and encouraging leading indicators across our growth drivers. These results reinforce our conviction in our ability to create sustainable long term value for shareholders. Before going through the details on the third quarter, I will take a moment to provide a brief update on the strategic review we disclosed on our Q2 earnings call. With the assistance of our advisers, we continue to evaluate a range of strategic options for the company. As you may recall, this review was prompted by an unsolicited acquisition proposal and multiple expressions of interest. The process is ongoing, and we will continue to take the time necessary to fully assess all options and determine the best path forward for our shareholders. We are not able to provide further details at this time, and we will not be answering any questions regarding the strategic review. Turning to the third quarter, I will update you on the 3 priorities we outlined at the start of the year. 1, accelerating long term revenue growth with increased investment in the 4 growth drivers peripheral nerve stimulation, platelet rich plasma, ultrasonics, and our international business, 2, increasing earnings even with a higher level of investment in these 4 growth drivers; and 3, continuing to strengthen cash flow and enhance capital allocation optionality. Let me expand on each priority starting with accelerating long term revenue growth. Overall, third quarter revenue grew 3%, led by strong growth of 6% in pain treatments. This performance was partially offset by softness in bone graft substitutes down 6% for the quarter, reflecting strong underlying momentum within each of the growth drivers. Let me highlight a few examples of the progress we are achieving with the growth drivers starting with platelet rich plasma, where momentum continues to build with sequential growth in the number of capital placements. Even more encouraging is the meaningful ramp up in disposable reorders. During the third quarter, revenue from PRP disposable kits exceeded revenue from capital placements. Which is an important indicator of future growth. We are pleased to see the growing adoption of our customizable solution and its potential to displace competitive offerings. In addition, we recently secured exclusive rights from our PRP partner, Apex Biologics, to offer our solution in sports medicine accounts. This agreement broadens the addressable market and creates an additional avenue for growth as we continue to build commercial momentum. Next, our PNS business continues to gain traction strengthening our confidence in both the market opportunity and the vast potential for our product offering. Physician feedback is very encouraging as clinicians gain more experience with Talisman, providing further validation of our differentiated technology and launch strategy. Key performance indicators reinforce this progress. Trial to permanent conversion rates are exceeding plan, the time from trial to permanent implant placement has shortened, and the number of physicians trained grew by more than 50% quarter over quarter. Collectively, these trends point to growing physician engagement and improving conversion efficiency. Key drivers for continued revenue growth acceleration. We have also strengthened PNS leadership and commercial capabilities by hiring a best in class marketing leader, expanding our commercial infrastructure, equipping the team with more effective competitive selling and targeting tools, and increasing our presence at key medical congresses and industry meetings. Learning within the initial launch phase combined with these investments position us to accelerate market adoption and capitalize on this significant growth opportunity. Turning to Ultrasonics. We saw very strong double digit revenue growth this quarter. Investments in marketing and surgeon training are driving increased surgeon adoption. Accelerated disposables growth, and new account wins. We expect this momentum to continue into the fourth quarter paving the way for further growth acceleration in 2027. Finally, international revenue accelerated 16% in Q3. As we begin to see the impact from talent additions, and the team's successful focus on select markets. We are encouraged by the speed of execution the depth of the opportunity pipeline, and our customer win rates. We expect to deliver strong double digit growth in the fourth quarter, and for the full year. Turning to our second priority, increasing earnings even as we invest in future growth drivers. The third quarter again demonstrated the underlying earnings power and resilience of BioVentes' business. Despite increased investment in the growth initiatives, we delivered an adjusted EBITDA margin of 20%, an improvement of 70 basis points compared to the prior year period. Looking ahead, we now expect full year adjusted EBITDA margin to be above the prior year level. Reflecting our ability to balance strategic investment with operating discipline. With strong operating performance, and significant interest expense savings, we delivered adjusted EPS of $0.17 in the quarter. Which advanced 13% versus the prior year. And on a year to date basis, adjusted EPS has increased by 18%, underscoring our continued ability to grow earnings while investing in the opportunities that will drive long term value for shareholders. As we close out the year, we expect to see sequential acceleration in revenue growth and earnings while continuing to increase our investments to drive growth, and deliver on the full year adjusted EPS guidance we provided the beginning of the year. This reflects the strength of our business model. Supported by the earnings power generated from solid revenue growth, our stable peer leading gross margin, and the disciplined focus on operating expense management. Turning to our third priority, accelerated cash flow. We delivered another strong quarter with cash from operations of $21 million. This strong cash generation funded the repayment of $19 million of our term loan, bringing year to date term loan repayments to $65 million. This enabled us to achieve an important financial milestone of lowering net debt at the end of the quarter to below $200 million Overall, we continue to execute on our strategic priorities. Driving increased conviction in our strategy and growing confidence in the strength of the portfolio and investment approach, as we build Bioventus into a leading $1 billion med tech company that delivers exceptional value for customers, employees, shareholders, and all other stakeholders. Now I will turn the call over to Mark to walk through the quarterly results in more detail. Mark Singleton: Thank you, Robert, and good afternoon, everyone. Let me start by saying I am excited about our ability to continue to increase profitability and deliver strong cash flow as we continue to invest in our future growth drivers. Turning to headline results for the third quarter. Revenue of $142 million increased 3% compared to the prior year period. Growth was driven by strength in pain treatments, along with strong performance in other areas of the portfolio, which was partially offset by a slowdown in BGS within surgical solutions. Adjusted EBITDA of $28 million increased nearly $2 million compared to the prior year period and grew faster than revenue growth. Additionally, adjusted EBITDA margin of 20% expanded 70 basis points compared to the third quarter last year. And adjusted earnings were $0.17 per diluted share for the quarter up 13% compared to $0.15 in the prior year period. Now let me provide some additional commentary on the quarterly revenue. In global pain treatments, we delivered strong growth with revenue of $71 million representing a 6% increase compared to the prior year. Pain treatment is up 9% year to date reflecting the strength of our broad portfolio the differentiation of Duralane, and the strong early traction we are seeing with PRP and PNS. Moving to surgical solutions, revenue in Q3 totaled $51 million which was an increase of 1% compared to the prior year. In Ultrasonics, we delivered strong double digit growth. With continued progress in capital placements, and continued acceleration in disposable volume as we drive new surgeon adoption. As Rob mentioned, the momentum with our strong underlying fundamentals support very strong growth in the fourth quarter and into 2027. As it relates to BGS, revenue came in lower than expected as strong volume from new large IDN accounts was offset by modest softness in spine procedures, temporary delays in adding new distributors, and some competitive dynamics in the synthetic market. We implemented changes late in the third quarter and are seeing positive trends to start the fourth quarter. We continue to believe that these factors are transitory, and we continue to have strong conviction that our IDN strategy the clinical and economic value proposition, and the long term opportunity for this business. In restorative therapies, revenue of $21 million declined 3%. The quarter's results were driven by an impact to volume due to higher vacancies in the Exogen sales force that have since been filled. Finally, international revenue of $18 million grew 16%, compared to the prior year period. or 18% on a constant currency basis. Primarily due to the strong double digit growth in the ultrasonic and other businesses. Our growth outlook for international continues to be very strong. And we expect to generate more than 20% growth in the fourth quarter and continued excellent growth in 2027. Moving down the income statement, adjusted gross margin of 75% was slightly lower than the prior year period. Primarily due to product mix. With respect to operating expenses, we remain disciplined with our spending while appropriately investing in our growth drivers and achieve adjusted EBITDA margin of 20% in the quarter. Turning to the balance sheet and cash flow statement. We continue to generate strong cash flow. Cash flow from operations totaled $21 million during the quarter and we ended the period with $31 million of cash on hand and $230 million of outstanding debt. During the quarter, we reduced debt by an additional $19 million bringing the total debt repayment for the year to $65 million. We continue to expect our net leverage ratio to be below 1.5x by the end of this year. This stronger financial position is expected to drive further interest expense savings while enhancing our ability to strategically deploy capital towards the highest value opportunities. As a result of strong earnings, and outlook for the business, we are reaffirming our full-year adjusted earnings per share guidance of $0.75 to $0.79 per diluted share. We are adjusting our previously provided cash from operations guidance of $84 million to $89 million and presenting adjusted cash from operations in the same range, which excludes the cash flow impact of the company's review of potential strategic alternatives. With lower revenue expectations primarily in BGS, we now expect 2026 revenue of $590 million to $595 million. This guidance reflects the expectations of mid single digit revenue growth in Q4 and sequential acceleration. In closing, we delivered a strong performance across key strategic segments of the business, The successful investments, in our growth drivers, disciplined execution, enhanced profitability and strong cash flow position us very well to increase our momentum and build a leading med tech company that creates meaningful long term value for our shareholders. Operator, please open the line for questions. Operator: Thank you. We will now begin the question and answer session. To ask a question, you may press *1 on your telephone keypad. If you are using a speakerphone, please pick up your handset before pressing the keys. If at any time your question has been addressed and you would like to withdraw your question, please press *2. At this time, we will pause momentarily to assemble our roster. First question comes from Caitlin Roberts with Canaccord Genuity. Please go ahead. Caitlin Roberts: Hi. Thanks so much for taking the questions. Maybe just to start on BGS. I would love a little bit more color on the headwinds that you noted And just, you know, with the spine market softness you called out, any concerns that could potentially impact, you know, ultrasonics going forward? Robert Claypoole: Yes. Thanks, Caitlin. This is Robert. So, yes, there were 2 primary drivers behind the Q3, BGS performance. Both of which we view as transitory. First is we addressed some of the competitive dynamics in the synthetic market late in Q3 and already seeing positive results with October tracking ahead. And second is that what you mentioned and what Mark mentioned, the slowdown in spine procedural volume and the number of new distributors we added, which are now ramping back up. So I think really important to note there that we are already seeing positive results. With October after the actions we took and ahead of our expectations. And just long term, very excited about our IDN strategy in this space which is gaining significant momentum. Now, as it relates to the procedures, yeah, we it does not really impact from an ultrasonic standpoint. You know, keep in mind we have relatively small business there. Large market, We are changing the standard of care in that space. And so our strong volume was able to overcome anything that may have been happening from a procedural standpoint in that space. Caitlin Roberts: Understood. And just turning to Exogen, what are the expectations for the recovery here with the position still that you noted and how much of, you know, that potential recovery is built into, the revised revenue expectations. Robert Claypoole: Yes. Well, for Exogen, overall, we are making really good progress in refining commercial data analytics and targeting. We talked a little bit about that last time, and our messaging to help the team continue to get more efficient and effective in growing the business. So overall, this year, we expect the growth to be low single digits, which, you know, per your comment, is towards the lower end of the range that we targeted for the year. And that is factored into Q4 as well. But, you know, going forward, we expect this business to grow in the low single digit to mid single digit range consistent with what we have mentioned in the past. Caitlin Roberts: Great. Thanks so much. Robert Claypoole: Thank you, Caitlin. Operator: Thank you. The next question comes from Lawrence Solow with CJS Securities. Please go ahead. Lawrence Solow: Great. Thanks. Good afternoon, everybody. Could you maybe just give us a little more color on just granularity on the guidance revised revenue guidance, like $12.5 million at the midpoint. Is that all BGS? Or are we hitting that kind of 2% bar you set for PRP and PNS? I know you did not give numbers there. But has anything else changed across the P and L in terms of the. On the top line? Robert Claypoole: Yes. Larry, this is Robert. I will start. So we are lowering the full year guidance by, as you mentioned, approximately $12 million at the midpoint of the guidance range. Get more than half of that is from Q3, and that was primarily driven by BGS as mentioned. And then for Q4, the remainder of the reduction is due to BGS and the timing and of new reps that we are onboarding. So you know, all that said, we expect the sequential acceleration in Q4 to mid single digit growth, and pleased to say that, you know, we are already seeing positive traction there with the first month of the quarter. Lawrence Solow: Okay. And on the BGS, so the competitive dynamics, is that pricing I am taking it? Is that. You know? And was that kind of a you know, the. You know, if you had to kind of bucket those 3 things, are they kind of split evenly, or is 1 heavier than the other? I mean, I know you have been walking away from some business, you know, that discretionarily. Is that continuing still, you know, at least yes, at some point. I mean, in some respects. Robert Claypoole: Yes. Yes. They. You know, in the third quarter, really due to the 2 factors that we mentioned, the competitive dynamics in the synthetic space, you know, again, already seeing positive results after taking the actions, you know, late in the quarter. And then second, that slowdown in procedural volume and the number of new distributors that we added, which are now ramping back up. So those are the 2 primary causes for Q3. Spread across the 2 of them. And, you know, again, just cannot emphasize enough that we are already seeing positive results in October. We do not usually talk about the current quarter, you know, in a call, but I think it is important here to mention that seeing positive results with October are ahead of our expectations. And longer term, again, just excited. We are gaining a lot of momentum with the idea and strategy that we have talked about before. and are you seeing some nice gains there? And expect that to contribute going forward? Lawrence Solow: Okay. No. I appreciate all that. Okay. Thank you. Robert Claypoole: Thanks, Larry. Operator: Thank you. The next question comes from Chase Knickerbocker with Craig Hallum. Please go ahead. Chase Knickerbocker: Good afternoon. Thanks for taking the questions. Sorry for another 1 on BGS here. But, could you maybe just dial with a little bit more detail? Was the weakness isolated to Signifuse specifically? Maybe just talk about how OsteoAmp performed in the quarter kind of relative to Signifuse. Thanks. Robert Claypoole: Yes, Chase. So primarily, we saw the impact in the quarter in the synthetic space. And again, that is because of some of the competitive dynamics, etcetera. But, you know, when we mentioned the second reason of the slowdown in procedural volume and the number of new distributors added, obviously, that is across the portfolio, just not in the synthetic space. So good news again, I will repeat a little bit here, but we took the actions at the end of September, and we are already seeing really positive traction there with October tracking ahead. So I think that just underscores for us that, you know, we identified the right areas to focus on, took the actions, and early in fourth quarter, but we are seeing an impact from the actions that we took. Chase Knickerbocker: And if we just think about kind of what the right expectations by segment are in Q4, you kind of talked about the changes to guidance, but maybe just a little bit more specifically on how quickly you think that could bounce back, from those 2 specifically to surgical from those from those 2 specific headwinds? And then just the second piece, we have heard from some competitors that, seemingly, some larger are more willing to separate out biologics RFPs. Can you just speak to what you are seeing from a customer perspective? Are you getting more kind of inbounds on participating in those RFP processes specifically for biologics? Thanks. Mark Singleton: Thanks, Chase. This is Mark. I will start with just kind of going through the revenue when you look at it from the third quarter to fourth quarter sequentially. Overall, for restorative therapies or Exogen, we would expect that growth rate to improve a little bit into 4Q, given we had the sales vacancies in 3Q We, you know, we have those filled. Obviously, I have to, you know, get them onboard. From a growth perspective, we actually expect it to improve even though that is part of the guidance reduction. From a pain perspective, great growth in 3Q, as we talked about. We look into 4Q, we will see slightly lower growth rate, not much. But, really, you gotta remember, when we look into last year, our growth rate was 14%. In and 15% overall for So it was a strong quarter. In pain last year that we are comparing to, but still feel really, really good about the growth drivers and about our business within pain. From a surgical perspective, ultrasonics, again, had a really strong quarter with double digit growth. Obviously, we talked about struggles that we have had with BGS. When we look into fourth quarter, you know, as we talked about, BGS will be lower than our original expectations from a guidance perspective. But we do expect the growth to accelerate in the fourth quarter. So that is kind of walking through that. And as Robert also pointed out, we are seeing some early signs of traction and improvement in fourth quarter in BGS. From a biological. Biologic RFPs, I am gonna let Robert take that 1. Robert Claypoole: Yeah. So Chase, on that, you know, what? With the RFPs and the with the large accounts, particularly with the IDNs, you know, they are pointing out new requests for proposals with, you know, set formularies. And we are seeing that across the portfolio. I think what is most important there is that they are basing the decision making on the clinical and economic value of each of the individual products. So, we like that they are getting their hands around it, and we like, you know, that they are basing it on that combination of clinical and economic value. And I think that is why we are seeing a lot of traction there is because of our strong combination of clinical and economic value. So we really support what is happening there. And we are gaining traction. And already seeing a nice contribution to our growth within that space. From the activity with those large accounts. Chase Knickerbocker: Got it. Maybe just last for me. You know, it is a little bit tough for us sometimes to get a sense for kind of some of the specifics around PRP and PNS just with it being in pain. Can you maybe just give us a sense for your expectations for kind of growth contribution from PNS next year? Thank you. Robert Claypoole: Thanks, Chase. So, you know, as it relates to, you know, specifics for 2027, you know, not going to, you know, obviously, give any formal guidance or get too specific there, but I will give you some context on PNS. I mean, again, really excited about what we saw in Q3. Which included the expansion of the team, new customers, new trials, which led to new implants, and just very positive feedback about both our trial device and the power of our permanent implant, Talisman. And as we alluded to, the leading indicators that we have are getting more and more defined, and they are tracking ahead of our launch plan. And just learning a lot about how to maximize our success with this business over the coming years. And I will tell you, you know, this. that is what this year is all about. We are investing and activating our growth drivers while also very diligently analyzing our performance to shape the future decisions and investments to maximize our success. So, hey, I. You know, I fully expect the learnings, investments, revenue growth to keep ramping strongly. Not just in Q4, but, you know, per your question, throughout 2027. And the future years, and while I would not get specific on 2027, we fully expect to scale this business to over $100 million in the coming years. Mark Singleton: Thanks, Chase. Operator: Thank you. The next question is from Mike Petusky with Barrington Research. Please go ahead. Michael Petusky: Hey, good evening, guys. So I guess, I was wondering, the $13 million in incremental investment you guys sort of charted the course for at the beginning of the year, How far into that are you? And are you going to end up sort of investing that incremental $13 million? Or is it going to come in less? Or can you just speak to where you are on that? Robert Claypoole: Sure. Yes. Great question, Mike. We have accelerated our investments actually beyond the $13 million to almost $15 million So a couple million more this year, and similar to what we have conveyed in the past, more than half of that is going to PNS. Given the tremendous opportunity there and our build out of the business. But, you know, really across all of them, we are investing in an exciting range of commercial activities, and gathering a lot of data backed insights on just how to best unlock the full potential of the growth driver. So I would say in general, the fact that we are accelerating the investment beyond $13 million, you know, to $15 million in the back half here just demonstrates how much we are learning and the insights we are gaining. And, you know, how confident we are in increasing our investment in certain areas because of the positive traction that we are seeing. So again, as it relates back to our earnings, it is nice to be able to drive up our investment like this and still deliver strong earnings for the quarter. And we expect to continue those investments going through here through the fourth quarter and you know, not at the same rate in 2027, but, of course, we will be investing in those growth drivers in 2027 as well. Michael Petusky: Sure. And appreciate all the data points you gave around PRP and PNS. I am just curious, are you guys affirming sort of the 2% lift that you were expecting at the beginning of the year on those 2? Or are you essentially saying that there may be some timing that maybe 2% incremental associated with those 2 initiatives may not come in. Robert Claypoole: Yeah. So, you know, as you as you alluded to there, really exciting track with both. Currently tracking a little shy of the 200 basis points but we will see what we can do in Q4. I say either way, I could not be more excited about progress that we are making with both of them and the potential to enhance our overall growth profile, not just with those 2, but all of our key growth drivers. So we will we will let you know where we land after the year. Michael Petusky: Okay. 1 more quick 1 and then I will get off. In terms of the Ultrasonics momentum primarily getting deeper in with docs in terms of just driving better utilization with sort of the guys you have relationships with, or are you really expanding the footprint of docs that are utilizing your ultrasonics? Thanks. Robert Claypoole: Yes. Thanks, Mike. Really all of the above. You know, the investments are working. They are having a clear impact. The team's doing an excellent job. and just to address a couple of points. We are ahead of schedule on new users. Or surgeon adoption. Which is a really important leading indicator for us. We are also expanding our capital in placements. And then, you know, perhaps most importantly, we are seeing very positive continuous sequential growth trends in disposables. So that is what really fueled the double digit growth in Q3. Is that combination. And, yes, we look at it. We look at this business and as we are in the early innings with activating the real potential of ultrasonics. And just really looking forward to the path forward with this business. Michael Petusky: Alright. Great. Thanks. Robert Claypoole: Thank you, Mike. Operator: Thank you. And we have a follow-up question from Lawrence Solow with CJS Securities. Please go ahead. Lawrence Solow: Great. I appreciate the extra time. Just on the. I am curious. The. As Mike alluded to, so you said the investment expense is actually spending on up a couple million, up a couple million run rate. Where. Just have you been able to cut the costs on the SG and A line or at least keep SG and A relatively flat I guess, year over year on an adjusted basis if we take out you had a $3.5 million strategic alternatives expense that you took out there. But on an adjusted basis, if it is keeping it flat on similar revenue year over year, but continuing to invest. If you could just give us a little more color on where you have been able to you know, take some costs out of the P&L? Mark Singleton: Larry, this is Mark. Thanks for the question. Well, first, we talked about our largest shortfall in revenue in 3Q and for guidance from a BGS perspective. That business is our lowest variable margin business compared to our other businesses that have very lucrative variable margin. So when we miss on that, the profit that we lose is not as material as it would be in some of the other businesses. But I also think this is a testament to the powerful P&L that we do have when we are driving above market growth And the gross margins that we have really gives us the control of our P&L, and we have the commissions come out for BGS, but then there is other levers that we have, you know, from a variable spending perspective that come out as well. And I think you know, we have done a good job as a team over the last few years of really the disciplined management of all of our cost. You know, most importantly, as Robert talked about in 1 of the earlier questions, amongst that, prioritizing our spending and still being able to, you know, make significant investments into the business that allows us to continue the momentum and the fuel that we are putting into these growth drivers of, you know, starting out the year of investing $13 million You know, it is up to $15 million. So, really, overall, just the power of the P&L, the fact that we missed in our least lowest variable margin business is really the dynamics that is going on in the P and L, but it really just speaks to the strength of the powerful P&L that we do have. Lawrence Solow: Oh, I appreciate that. That makes a lot of sense. If I could squeeze 1 more in, I know you do not want to answer the questions on this specific process, but thoughts, just from a rough time line basis, would you like to you know, optimally, would you like to have something done by year end? Is that maybe a soft goal, soft target, if you will? is there any just any color on potential timing would be great if you if you can offer anything. Thanks. Robert Claypoole: Yes, thanks. As noted in the prepared remarks, the strategic review remains ongoing, and really not able to comment further at this time about any of the details. So thanks for that. Lawrence Solow: Appreciate that. I figured I would try. Okay. Thank you. Robert Claypoole: Thanks, Larry. Operator: Thank you. This concludes our question and answer session. I would like to turn the conference back over to Robert Claypoole for any closing remarks. Robert Claypoole: Thanks, everyone, We delivered another strong quarter and are excited about the underlying momentum across our growth drivers. We are confident in our ability to deliver above market revenue growth, increased earnings and accelerate cash flow to create significant shareholder value. Operator: The conference has now concluded. Thank you for attending today's presentation. You may now disconnect.