Take-Two Interactive Software Inc (TTWO) — Q3 2015 Transcript

Good afternoon. Welcome and thank you for joining Take-Two's conference call to discuss its results for the third quarter of fiscal year 2015 ended December 31, 2014. Today's call will be led by Strauss Zelnick, Take-Two's Chairman and Chief Executive Officer; Karl Slatoff, our President; and Lainie Goldstein, our Chief Financial Officer. We will be available to answer your questions during the Q&A session following our prepared remarks. Before we begin, I'd like to remind everyone that the statements made during this call that are not historical facts are considered forward-looking statements under federal securities laws. These forward-looking statements are based on the beliefs of our management, as well as assumptions made by and information currently available to us. We have no obligation to update these forward-looking statements. Actual operating results may vary significantly from these forward-looking statements based on a variety of factors. These important factors are described in our filings with the SEC, including the company's annual report on Form 10-K for the fiscal year ended March 31, 2014, including the risk summarized in the section entitled Risk Factors and the company's quarterly report on Form 10-Q for the fiscal quarter ended September 30, 2014. I'd also like to note that, unless otherwise stated, all numbers we will be discussing today are non-GAAP. Please refer to our earnings release for a GAAP to non-GAAP reconciliation and further explanation. Our earnings release and filings with the SEC may be obtained from our website at www.take2games.com. And now, I'll turn the call over to Strauss.

Thanks, Hank. Good afternoon and thank you for joining us today. I'm pleased to report that Take-Two built on its positive momentum in the third quarter delivering exceptional results that exceeded non-GAAP expectations for the 10th period in a row. As a result of our strong earnings at quarter’s end, we had nearly $1 billion in cash and short-term investments. This outstanding performance was driven by one of the most diverse holiday lineups in the company’s history led by Grand Theft Auto V for PlayStation 4 and Xbox One, NBA 2K15, WWE 2K15, Borderlands: The Pre-Sequel and Sid Meier’s Civilization: Beyond Earth. The stellar debut of Grand Theft Auto V on next-gen consoles illustrates why this series is our industry’s most iconic brand. The title is the highest rated game to date on both PlayStation 4 and Xbox One with the near perfect 97 Metacritic score, and is widely considered to be one of the greatest interactive entertainment experiences ever created. Grand Theft Auto V has already sold nearly 10 million units on PlayStation 4 and Xbox One, bringing total sell-in of the title to more than 45 million units across all consoles. And we continue to see strong demand for Grand Theft Auto V in the current quarter. NBA 2K15 enriched our franchises’ legacy as the number one basketball simulation that sets new benchmark for realism with each annual release. The title was the highest rated sports game of 2014 based on average Metacritic score across consoles and PC, and already has sold approximately 5.5 million units to date, continuing the franchise's trend of year-over-year growth. With the NBA season approaching its midpoint, demand for NBA 2K15 remains high, reflecting the game's position as the perennial favorite among sports fans. The WWE 2K franchise has quickly proven to be a highly successful addition to our annual offerings. This year’s launch of WWE 2K15 outperformed our forecast with sell-in to date up more than 40% compared to last year’s release. We believe substantial opportunity remains to grow our wrestling series meaningfully over time. Finally, the launch of Borderlands: The Pre-Sequel and Sid Meier’s Civilization: Beyond Earth added successful new titles to two of our most popular series. We are gratified that consumers remain dedicated to these brands years after their initial release and our teams are deeply committed to taking these beloved experiences to exciting new heights in the future. Our strategy is to create permanent franchises and it appears we are achieving that goal. During the third quarter, digitally delivered revenue grew 64% year-over-year and accounted for 23% of our total non-GAAP net revenue. We benefited from robust digitally delivered sales of our holiday releases and catalog, as well as continued growth in recurrent consumer spending, including virtual currency, add-on content, and online games. The single largest contributor to recurrent consumer spending was Grand Theft Auto Online, which continued to deliver stronger than expected results. Consumer engagement was enhanced by the game's launched on PlayStation 4 and Xbox One, as well as Rockstar Games' release of two updates, The Last Team Standing Update and the holiday-themed Festive Surprise. Consumers on all platforms can look forward to the release of more Grand Theft Auto Online content including Heists. Recurrent consumer spending has been growing enhancements to the success of the NBA 2K series, including NBA 2K15. During the third quarter, it increased nearly 90% year-over-year, benefiting from both online play and significant engagement with the MyNBA 2K15 companion app. A variety of other offerings also contributed to recurrent consumer spending in the quarter, including downloadable add-on content, WWE Supercard, which has been downloaded nearly 6 million times since its release last August, and NBA 2K Online in China, which now has nearly 24 million registered users. Creating opportunities for consumers to engage with our titles after their initial purchase is an important high-margin growth opportunity and, therefore, a key strategic focus for our teams. We plan to support virtually all of our new releases with innovative offerings designed to drive meaningful revenue and profits from recurrent consumer spending. From an industry perspective, we are pleased with the performance of the new hardware to date, which has exceeded our expectations. Consumer demand for the PlayStation 4 and Xbox One appears to have been strong throughout the holiday season with a combined installed base of these platforms exceeding 29 million worldwide at the end of December, according to IDG estimates. The ongoing success of next-gen consoles underscores the vibrancy of the core gaming market and represents a significant growth opportunity for Take-Two. I’d like to congratulate our teams around the world for delivering a great quarter and successfully launching five outstanding titles during one of the busiest periods for the industry. As a result of our better-than-expected third quarter non-GAAP results, we once again have raised our outlook for fiscal 2015, which is poised to be one of our best years ever. Our fourth quarter should provide an exciting close to the fiscal year. Next week, the eagerly anticipated launch of Evolve coupled with the March release of Grand Theft Auto V for PC and then a variety of other offerings should continue to set standards for creative excellence and delight audiences worldwide. With our world-class creative teams, robust development pipeline, leading-edge technology, and ample cash resources, Take-Two is superbly positioned to deliver growth, profits, and returns for our shareholders over the long term. I’ll now turn the call over to Karl.

Thanks, Strauss. I’d like to begin by congratulating our worldwide teams for delivering an outstanding third quarter. From development to marketing to distribution, every facet of our company worked in lockstep to achieve these results, which have enhanced our outlook for the year and also strengthened Take-Two for the long term. On the heels of an enormously successful holiday season, we kicked off the fourth quarter with the release of downloadable content offerings for WWE 2K15, including the New Moves Pack and the Showcase: One More Match, as well as the Lady Hammerlock Pack for Borderlands: The Pre-Sequel. Each of these expansions will enable fans to deepen their engagement with these beloved franchises. Next Tuesday, February 10, we’ll mark the launch of Evolve, the only game in history to win Game of Show honors at both E3 and Gamescom in the same year. Last month, 2K launched an Open Beta, and the feedback was enthusiastically positive and well received by the press. During the five-day Beta test, YouTube content creators and Twitch streamers generated an enormous amount of content resulting in over 3.7 million unpaid YouTube viewers and 1.7 million unique viewers on Twitch. In keeping with our focus on driving recurrent consumer spending, Evolve will be supported with a robust array of additional content, including a value-packed season pass that features four new playable Hunter characters available this spring and three exclusive Monster Skins available at launch. In addition, 2K recently released the Evolve: Hunters Quest companion app, which links directly into the main game for an expanded experience that can be enjoyed on the go. We are encouraged by the game's reception among press and consumers and look forward to a strong global launch for Evolve. I’d like to thank Turtle Rock and 2K for their tireless dedication in bringing this important new intellectual property to market for our company. On March 24th, Rockstar Games will launch their record-shattering hit, Grand Theft Auto V on PC. Purchasers of the title will also have access to Grand Theft Auto Online at launch, which will support up to 30 players. We look forward to bringing this even further enhanced version of the Grand Theft Auto V experience to PC gamers next month. Also on March 24, 2K will release Borderlands: The Handsome Collection, bringing the critically acclaimed series, which has sold nearly 23 million units worldwide, to next-gen consoles for the first time. The Handsome Collection includes Borderlands 2 and Borderlands: The Pre-Sequel along with all of the downloadable content for both titles. This represents over $100 of content value on prior-gen consoles, but now with the graphical fidelity of next-gen consoles for $59.99. The title also features the ability for players to transfer save data across console generations along with four-player split-screen gameplay, a franchise first. We think the collection will appeal to loyal Borderlands fans who want to experience the series on our new systems, as well as those joining its universe for the first time. In spring 2015, 2K will launch Sid Meier's Starships, a new turn-based adventure-driven strategy game, set in the Civilization: Beyond Earth universe. Starships lets players command a fleet as they embark on a series of missions to explore the galaxy, protect planets and their civilizations, and build a federation to usher in a new age of peace. The game will be available for PC, Mac, and iPad and will be sold only through digital download. Civilization: Beyond Earth fans who purchase Starships will uncover cross-connectivity between the two games that will enhance and expand the depth of both experiences. During the fourth quarter, 2K will also continue to support its titles with additional downloadable content, including the WWE 2K15 Showcase: Hall of Pain pack and an exciting new path for Borderlands: The Pre-Sequel, which 2K will unveil in the coming weeks. In fiscal 2016, consumers can look forward to the launch of Battleborn, an all-new intellectual property developed for next-gen and PC by Borderlands creators Gearbox Software. The title is a blended genre game that combines first-person shooting, cooperative combat, and an expansive collection of characters to deliver an all-new hero shooter experience. In addition, consumers can expect new annual releases from our NBA 2K and WWE 2K series, as well as exciting yet-to-be-announced titles from other popular franchises. We’ve also continued to invest prudently in online gaming experiences for Asian markets. During fiscal 2016, we expect to launch Civilization Online, a mass multiplayer online game being developed in partnership with XLGAMES. The title is planned for initial launch in Korea, and we are exploring potential expansions to other Asian territories as well. Looking further ahead, we have a robust long-term pipeline of titles in development, including groundbreaking new intellectual properties and new releases from our proven franchises. For example, we can confirm that 2K and Gearbox Software will develop an all-new Borderlands game built specifically for next-gen consoles. In addition, we have numerous unannounced titles in development, as well as innovative offerings designed to maximize player engagement and drive recurring consumer spending. We’ll have more to announce about our future lineup in the coming months. I will now turn the call over to Lainie.

Thanks, Karl, and good afternoon everyone. Today, I'll review our results for the third quarter and then discuss our outlook for the fourth quarter and fiscal year 2015. All of the numbers I'll be providing today are non-GAAP results and all comparisons are year-over-year unless otherwise stated. Our press release provides a reconciliation of our GAAP to non-GAAP measurements. Starting with our results for the third quarter, non-GAAP net revenue increased 24% to $954 million versus $767.7 million from last year’s third quarter. This result exceeded our outlook range of $745 million to $760 million, due primarily to the outstanding launch of Grand Theft Auto V for the PlayStation 4 and Xbox One, as well as continued strong engagement with Grand Theft Auto Online and robust holiday sales of WWE 2K15. Digitally delivered revenue grew 64% to $217.2 million, up from $132.8 million last year. Revenue from recurrent consumer spending, including virtual currency, downloadable add-on content, and online games, grew 23% and accounted for 36% of digitally delivered revenue. The largest contributors to digitally delivered revenues were offerings for the Grand Theft Auto series, NBA 2K15, the Borderlands franchise, and Sid Meier’s Civilization: Beyond Earth. Catalog sales accounted for $103.7 million of net revenue, led by the Grand Theft Auto series and offerings for Borderlands 2. Gross margin increased slightly to 45.7%. Operating expenses were $157.2 million, up by $40.2 million due to higher marketing expenses on third-quarter releases. And non-GAAP net income increased to $211.6 million, or $1.87 per share, up from $210.7 million or $1.70 per share in fiscal third quarter 2014. This result exceeded our outlook range of $1.35 to $1.45 per share. On a GAAP basis, we reported net revenue of $531.1 million, a net income of $40.1 million or $0.42 per share. Turning to some key items on our balance sheet at December 31, 2014, as compared to September 30, 2014, our cash and short-term investments balance increased to $976.6 million. This equates to net cash of approximately $8.57 per share, which includes the potential dilution from our convertible notes. Our accounts receivable balance increased to $435.7 million, reflecting holiday sales. Inventory decreased to $24.6 million due primarily to shipments of our third-quarter titles. And software development costs and licenses decreased to $294.8 million, reflecting the amortization of capitalized costs for our recent releases. Now, I will review our financial outlook for the fourth quarter and fiscal year 2015, which is provided on a non-GAAP basis. Starting with the full fiscal year as a result of our better-than-expected non-GAAP third-quarter performance, strong current business trends, and positive sales outlook for our upcoming releases, we are increasing our outlook for both revenue and net income per share. We now expect net revenue to range from $1.65 billion to $1.7 billion, up from the prior range of $1.4 billion to $1.5 billion, and net income to range from $1.65 per share to $1.75 per share, up from the prior range of $1.05 to $1.30 per share. Turning to the details of our full-year outlook, we expect the revenue breakdown from our labels to be roughly 50% from 2K and 50% from Rockstar Games. We expect our geographic revenue split to be about 60% United States and 40% international. We expect gross margins in the mid-to-upper 40s. Total operating expenses are expected to increase by approximately 11%, driven primarily by personnel expenses on a higher headcount, higher professional fees, and higher depreciation expenses. Selling and marketing expense is expected to be about 14% of net revenue based on the midpoint of our outlook range. And we project interest and other expenses of approximately $10 million, tax expenses of about $70 million, and weighted average fully diluted shares of approximately 114 million. This reflects weighted average basic shares of approximately 80 million, 8 million participating shares, and 26 million shares representing the potential dilution from our convertible notes. Interest on the convertible notes, net of tax, is approximately $6.8 million, which should be added back to net income to calculate net income per share. Turning to fiscal fourth 2014, we expect net revenue to range from $410 million to $460 million and net income to range from $0.15 to $0.25 per share. The majority of our revenues is expected to come from Grand Theft Auto V, Grand Theft Auto Online, Evolve, and NBA 2K15. We expect gross margins in the low to mid-40s. Total operating expenses are expected to increase by approximately 64% from the prior year's fourth quarter, due primarily to higher marketing expenses for upcoming releases and higher research and development expenses for titles that have not yet reached technological feasibility. Selling and marketing expense is expected to be about 15% of net revenue based on the midpoint of our outlook range. Our fourth-quarter outlook also reflects interest and other expenses of approximately $2 million, tax expenses of $30 million, and weighted average fully diluted shares of approximately 115 million. This reflects weighted average basic shares of approximately 81 million, 8 million participating shares, and 26 million shares representing the potential dilution from our convertible notes. Interest on the convertible notes, net of tax, is approximately $1.7 million, which should be added back to net income to calculate net income per share. We expect operations to be approximately cash flow neutral during the fourth quarter, and we continue to expect to generate cash from operations in fiscal 2016. As a result of the creative excellence of our development team, we do have an extraordinary holiday lineup. Fiscal 2015 is poised to be one of the most successful years in the history of Take-Two. Looking ahead, our industry-leading creative assets and strong balance sheet provide a solid foundation for our company to continue to deliver long-term growth, profits, and returns for our shareholders. Thank you. Now I will turn the call back to Strauss.

Thanks, Karl and Lainie. On behalf of the entire management team, I'd like to again thank our colleagues for their contributions to our success. To our shareholders, I want to express our appreciation for your continued support. We'll now take your questions.

Yes. Thanks for taking my question. So at the beginning of the year, you guys sounded a little bit cautious with what you’re going to do with your cash because you were at the start-up in your cycle and you thought at that time you were going to be using a modest amount of cash. Now that it looks like you are going to be nicely cash flow positive this year, you should be cash flow positive next year. Your unencumbered cash is nearly $1 billion, obviously a lot more than you really need. Can we talk about some updated thoughts about potential returns of capital to investors? And then secondly, how do we think about GTA Online going forward in terms of content updates on a long-term basis?

Yes. Thanks for your questions. In terms of cash usage, obviously it’s good to be in the position that we’re in, and that's a reflection of the team’s great work and the results that we’ve had. So now we have, as we said, nearly $1 billion on the balance sheet. We’ve said over and over again that the cash here is used for potentially three purposes: supporting organic growth, and the company story has largely been an organic growth story and one of which we are very proud; supporting return of capital for shareholders. And we’ve done that in a big way as well. Relatively recently, we purchased almost $280 million worth of stock back. And we have the opportunity also to support our growth with inorganic acquisitions. We have a very disciplined team who are focused on building our core business. And if we were to do any kind of acquisition, it would have to be strategically powerful and accretive. That's the appropriate lens through which to look at any potential inorganic opportunity and that remains unchanged. In terms of GTA Online, it continues to exceed our expectations and delight us, and that’s because it delights consumers. We are thrilled with what the team at Rockstar has done and continues to do. There is more content coming. The Heists are coming. I’ll let Rockstar talk more about that, it’s not for this call. But I do think it’s for this call just to acknowledge the extraordinary work that the team has done and the results that it’s delivered. This is a living breathing entity that continues to delight consumers day after day, week after week, month after month.

Hey, good afternoon. How would you describe the trends for legacy gen software in the December quarter and so far in the March quarter? Specifically, is the decline in legacy gen easing to some degree as we push farther into the next gen cycle? So that's one question. And then the second one would be for Sid Meier's Starships, is that included or not included in the March quarter guidance? In other words, by a spring launch, do you mean after March? Thanks.

Hi Mike, it’s Karl. We are still seeing strong demand for our legacy generation products. Though we've heard some anecdotes about others struggling to sell their old products, we are not facing that issue, which reflects the quality of what we offer. However, as we progress and the next generation continues to emerge, which we are enthusiastic about, it's clear that sales of legacy products will eventually decline. The pace of that decline is uncertain. Currently, there's still a strong market for our legacy products, and we will keep producing them as long as it makes sense. Could you please repeat your question about Starships? I didn't catch the entire thing.

I think you mentioned a spring launch in the press release. Does that refer to the March quarter or sometime after? In other words, is it included in the March quarter guidance or not?

Yeah, we just said spring at this point.

Okay. Thanks. Good afternoon, everyone. Could you comment on your channel inventory given you sold in nearly 10 million units of Grand Theft Auto V for next-gen, as well as the NBA 2K15 update you provided nearly 5.5 million units sold in to date? That’s my first question. And then a second question for Karl, you mentioned Borderlands with Gearbox, is that a fiscal '16 launch, or is that yet to be determined? Thanks.

It’s Karl. In terms of the channel inventory, right now, I think you specifically asked about GTA and NBA. We were very pleased obviously with our selling and also sell-through. So we don’t see any of those channel inventory issues at all on any of our products. So that’s not a concern of ours. I think our retailers are very happy with our sell-through in general, and again, this speaks to the quality of our titles and the strong season we had over the holidays. In terms of the new Borderlands title, we have not announced the date for that.

Thank you. Congrats on a good holiday versus expectations. Can you talk about next year? You obviously have a really tough holiday comp? Do you need a big blockbuster title in the second half of next year to kind of grow? How are you thinking about that? Or can you make it up with a lot of small titles? And then can you talk a little about the digital download percentage of games for the full game? Is that growing for you? And how will that affect your margins over time? Thank you.

It’s a challenging comparison, as we had a strong holiday season with five successful titles. This year is looking promising, but we don’t focus solely on the math of comparisons. Instead, our goal is to provide consumers with outstanding interactive entertainment. We have ten franchises that each sold over five million units and forty franchises that sold multi-million units, supported by 2,000 creative individuals working on various projects. We are committed to delivering top-quality projects, and while consistent annual growth would be great, we prioritize long-term excellence, which has served us well for the past seven years. While it’s a tough comparison to make, we’re confident and expect the company to be profitable next year and into the future. We are discussing upcoming titles and feel positive about our prospects. However, our focus isn't strictly on quarterly or yearly growth; our mission is to delight our audiences, and we believe that will lead to positive outcomes, including financially. Regarding your question about the percentage of revenue from digital downloads, Lainie will provide more details.

Yeah. For the digital business, we do continue to see it growing quarter-over-quarter. It depends on what the mix of the overall business is, but we do see the digital business in general growing. As we focus more on recurrent consumer spending, we’re seeing higher margins come from that business, so that continues to grow. We expect our digital margin as a whole to continue to grow as well.

But generally speaking, consumers are migrating to digital distribution of entertainment products, and we’re part of that.

Yes. Good afternoon. Thanks for taking my questions. Two quick ones, if I might. First, maybe re-ask the digital question. Could you give us a general sense of the mix of your digital revenues of full game downloads, micro-transactions, and DLC kind of what's the rank order bucket or some general size of the mix? And then secondly, more broadly, Strauss, one of the takes on Take-Two was you had an over-concentration of revenues and profits in one franchise, and that being GTA. We have been arguing, and you have been delivering a broadening of that portfolio with things like Borderlands and the re-launch of Red Dead and BioShock, so you have done that. But the problem is GTA has grown much, much faster; it has actually continued to, as you say, delight and surprise, and so we still have this problem. Is that just a high-quality problem, and you don't deal with it, or do you almost just want to double down on that franchise? Tell me how you think about allocating resources to your portfolio? Thanks.

In the digital space, we talked about this quarter that 23% of the quarter was digital business, and 36% of it was from recurrent consumer spending. We don’t break out the pieces of the recurrent consumer spending, but the majority of it came from the GTA Online, which was our biggest component. The full game downloads is approximately 50% of overall total sales for the quarter.

In terms of the over-concentration of Grand Theft Auto as a contributor to our revenues and profits, as you pointed out, that’s a high-class problem, to use that phrase for the second time in the call. Remember, our goal is to make every one of our releases as big as it can possibly be. That would be everything from Grand Theft Auto to all the other hits that we have around here. The fact that Rockstar keeps making Grand Theft Auto more and more relevant attracts more and more consumers. Grand Theft Auto V has sold in approximately 45 million units for legacy and next-gen consoles, which is nothing short of extraordinary. We have a great story to tell with our other intellectual properties as well, and they continue to grow. Therefore, if someone’s looking at the company and saying, you have this massive industry hit, and then you have an array of simply huge industry hits, it’s very difficult for me to see bad news in there as long as we keep delivering more and more successful franchises. Every year since ’07, this company has successfully launched at least one new mega-million unit selling franchise. It’s our goal to keep doing that; I can’t guarantee we will always do it, but that is our goal. If we do that, I think we are doing our job well, and it’s reflected in our revenues and profits. If we are fortunate enough that Grand Theft Auto can also grow simultaneously, that’ll only be a blessing. I can’t find anything bad about it.

Thank you, and I want to congratulate everyone on the excellent quarter. I'd like to continue the conversation about digital downloads. We have received some questions regarding that. Can you clarify if it was 15% of the quarter? This quarter, you also had Civilization, and I'm curious about how that affected the percentage of PC sales, which tends to have a higher digital mix. Additionally, could you share insights on GTA V for next-gen specifically, particularly any trends you noticed in full game downloads? Lastly, regarding GTA Online, you had that last year in the fourth quarter and this year as well. Could you provide some details on the year-on-year growth? I don’t see consistent growth every quarter, but I’d like to know where it ended up in December this year compared to last year. Thank you.

For the full game download, we don’t break that out on a title-by-title basis. But you are correct, being a PC title, Civilization tends to be heavily weighted towards digital, and that would drive that full game download percentage higher specifically in this quarter. And when we talk about the GTA Online, this quarter has essentially grown each quarter and has been up from last year. We also introduced it on to the next-gen during this quarter, so that also drove more online and virtual currency revenue, as well as updates during this quarter.

Hi. Two quick questions. One, do you folks have any strategy for the convertible? I would just assume it left the balance sheet, but that’s essentially your quality? Just going to let it run, or can you force it at some point? And I have a follow-up question?

On the $250 million convertible, it matures in 2016, and it doesn’t make sense economically right now for us to take it out until that time. But we continue to evaluate options to see if there is an opportunity to make any changes to our capital structure. When it makes sense, we will do so.

And second question, which is pretty far away from the first. In the last few weeks, Tencent has announced significantly more involvement with the NBA. Could you update us on what’s going wrong with your online game, and whether this increased involvement with Take-Two or with Tencent and the NBA means that that product perhaps has much more potential than you might have imagined?

We’ve always been optimistic about the opportunity with NBA 2K online in China. We now have 24 million registered users. It continues to generate revenues and profits for us. We are very, very happy about it. I will let Tencent and the NBA comment on their own activities; it’s probably better not for me to do so. Just want to thank everyone for joining us today. We are very gratified by the results. Once again, how we do around here is generated first and foremost by 2,000 highly creative people who dedicate their lives to working here under our auspices and partnership with us, and we couldn’t be more grateful for their activities. And of course, they are supported by an equally dedicated group of people who market and distribute those products, and then people who make sure that the trains run on time right here, including people sitting with me today. We are phenomenally proud of what our team collectively has built here at Take-Two. We are all grateful to have an opportunity to work here, and we are happy to be able to deliver these results for ourselves, for our colleagues, and for our shareholders. So, thanks so much for joining us today.