TTWO - NASDAQ

Greetings, and welcome to the Take-Two Third Quarter 2023 Earnings Conference Call. At this time, all participants are in a listen-only mode. A brief question-and-answer session will follow the formal presentation. [Operator Instructions] As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Nicole Shevins, Senior Vice President of IR and Corporate Communications. Thank you, Nicole. You may begin.

Good afternoon. Thank you for joining our conference call to discuss our results for the third quarter of fiscal year 2023 ended December 31, 2022. Today's call will be led by Strauss

Thanks, Nicole. Good afternoon, and thank you for joining us today. During the third quarter, we continued to execute on our ambition to create the highest quality, most engaging interactive entertainment franchises in the industry to deliver them across an array of platforms and to captivate our global audiences. All of our new game releases and post-launch content have received significant critical acclaim, and we're pleased to have the highest catalog sales based on units sold in the Americas. The strength of our portfolio reflects the passion, vision, artistic acumen and hard work of our world-renowned development teams and studios, and we're immensely proud of our long-standing commitment to quality. Notwithstanding our creative achievements, our third quarter net bookings of $1.38 billion were slightly below our prior guidance. We believe that as a result of macroeconomic conditions, consumers shifted holiday spending toward established blockbuster franchises and titles that were offered with pricing promotions. While our catalog benefited from this trend, it affected the performance of certain of our new releases and recurrent consumer spending for some of our console and PC games. Despite the current market, we believe that our long-term success will be driven by our consistent ability to create the best entertainment experiences, including sequels of our beloved franchises and the introduction of engaging new intellectual properties. Sales of Grand Theft Auto V exceeded our expectations during the holiday season. And to date, the title has sold in more than 175 million units. During the quarter, Rockstar Games released an array of new content for both, Halloween and the holiday season as well as a new story-driven update Los Santos Drug Wars. The update launched in December and continues to deliver exciting new story and gameplay features to players across the winter season, including a new business, tax emissions and much more to come, which is continuous to drive stronger engagement with our player race. We were also pleased with the performance of Red Dead Redemption 2, which outpaced our expectations driven by successful holiday promotions and events. To-date, the title has sold in more than 50 million units. During the quarter, Rockstar Games continued to release new updates for Red Dead Online, including a new Halloween Hardcore Telegram Mission and new Call to Arms locations for Halloween and the holidays. We remain incredibly pleased with the enduring quality of these entertainment experiences. Grand Theft Auto V was ranked number three for units sold in the US during calendar year 2022 on all platforms and was number two overall for 2022 on Steam. Additionally, 2022 was GTA V's tenth consecutive year in the NPD top five for unit sales. Red Dead Redemption 2 also continues to resonate strongly with players, ranking as the number one selling game on Steam for the quarter end, number three for 2022. NBA 2K23, which remains the number one selling sports title in North America continues to expand its audience and to date has sold in over 8 million units. Full game sales for NBA 2K23 are up 3% year-over-year, and MyTEAM users grew more than 50% over last year, as players enjoyed assembling the rosters of the NBA's all-time greatest stars to dominate the competition. In addition, NBA 2K23 Arcade Edition remains the number one game in Apple Arcade since its launch in October. 2K and HB Studios supported PGA TOUR 2K23 with the limited-edition holiday bundle that included NBA 2K23 and new content featuring branded gear from Barstool Sports, 100 Thieves, and Dude Perfect. HB Studios will release more content and features, including the addition of Pebble Beach, cosplay functionality and ranked patch making. On December 2, 2K and Firaxis Games launched Marvel's Midnight Suns on Windows PC via Steam and Epic Games Store, PlayStation 5 and Xbox Series X|S. The title launched a critical acclaim with BGC rating at a five out of five, calling it a modern strategy classic. PC Gamer said it was completely brilliant, scoring at 88 out of 100 and Rock Paper Shotgun called it one of the best Superhero games. The title is being supported with a series of post-launch content that can be purchased individually or as part of the game seasons pass. During the quarter,

Thanks, Strauss. As we focus on the remainder of the year and beyond, we remain steadfast in our commitment to providing the most captivating and engaging entertainment experiences for our audiences across all platforms and geographies. We believe this is the best strategy and path forward to achieving our goals, driving our expected long-term growth and bringing value to our shareholders. Turning to our upcoming releases. On February 24, Private Division and Intercept Games will launch Kerbal Space Program 2, its early access for PC on Steam, Epic Games Store and other storefronts. KSP 2 will bring an array of content for players to explore and the title promises to be the most visually impressive game in the franchise. Those that purchased KSP 2 in early access will help inform the future development of the game by providing feedback directly to its creators leading up to the full launch of the title. In addition, Private Division has announced several new projects. After us, a riveting exploration debenture game from Piccolo Studios is expected to launch this spring during fiscal 2024 for PC, PlayStation 5 and Xbox Series excellence. Private Division announced a publishing partnership with Bluebird team to develop a new survival harder game expected to launch after calendar 2024. And we unveiled our new Private Division development fund to support smaller independent teams with project financing and mentorship opportunities. On March 17, 2K and Visual Concepts will release WWE 2K23 for PlayStation and Xbox consoles and PC on Steam. In celebration of John Cena’s 20th anniversary as a WWE superstar, the 16-time World Champion’s record-setting philanthropist and WWE 2K23 Executive soundtrack producer will be featured on the cover of each addition of the game. In addition, global music phenom Bad Bunny, 2022's most streamed artist in the world will make his WWE 2K debut as a preorder bonus. Building upon the success of WWE 2K22, this year's installment features a unique take on the 2K showcase, the introduction of the fan-favorite WarGames matches and expenses to several marquee games. Fans can look forward to a deep roster of WWE Superstars and Legends, including Roman Reigns, American Nightmare Cody Rhodes, Ronda Rousey, Brock Lesnar, Stone Cold Steve Austin and more. 2K will support the game with an array of post-launch content and may be purchased individually or through a season pass. Throughout the balance of the fiscal year, Rockstar Games will continue to support Grand Theft Auto Online with additional content updates. And 2K and Firaxis games will continue to release add-on content from Marvel's Midnight Suns and Sid Meier's Civilization VI: Leader Pass. In mobile,

Thanks, Karl, and good afternoon, everyone. Today, I'll discuss the key highlights from our third quarter, before reviewing our guidance for fiscal year 2023 and our fourth quarter. Please note that our third quarter results include our combination with

Thanks, Lainie and Karl. On behalf of our entire management team, I'd like to thank our colleagues for their firm commitment to creativity, innovation and efficiency as we continue to navigate a challenging economic landscape. I'd also like to express our appreciation to our shareholders for their continued support. We'll now take your questions. Operator?

Thank you. We will now be conducting a question-and-answer session. [Operator Instructions] Our first question is from Eric Handler with MKM Partners. Please proceed with your question.

Good afternoon, and thanks for the question. Strauss, I wonder if you could talk a little bit about mobile advertising, specifically, have you been able to integrate advertising into

Thanks, Eric. I appreciate it. To answer your question, we have enhanced advertising within the

Thank you very much.

Thank you. Our next question is from Matthew Thornton with Truist Securities. Please proceed with your question.

Hey. Good afternoon, everybody. May be two, if I could. Coming back to mobile. I don't know if this one’s for Strauss, but can you give us maybe your higher level thoughts as you think about the mobile market? And I know it's hard to tease apart macro versus what's going on, on the user acquisition side with Apple ATT. But, I guess, putting macro aside, if you think about the mobile market over the next couple of years, how do you think about the growth rate of that business? And how are you thinking maybe different about the mix of in-app purchase versus ad revenue or the right genres or new IP versus existing franchises, the right cost structure, there's more opportunity there. Just how are you thinking about that as that market has obviously been very dynamic? And then I have a follow-up, but I'll stop there.

Well, I'll see how I do it then you can determine what your follow-up is like. So in terms of the mobile market, look, the reason we were interested in combining with

Yes. Just one quick follow-up, Strauss, and that's really impressive that you got all those, by the way. I was keeping note. So that's impressive. On the -- any -- you talked about the next couple of years getting back to record bookings, which you've talked about for a while now. I think you talked about sequential growth. Does that apply to fiscal 2024? I guess just any early thoughts about how we can start thinking about fiscal 2024? And then I'll hop back in the queue. Thanks again.

What we said today is we expect sequential growth and record results over the next couple of years, and that remains our expectations. We'll give you exact outlooks, including guidance in the coming months.

Thank you. Our next question is from Matthew Cost with Morgan Stanley. Please proceed with your question.

Hi, everybody. Thanks for taking the questions. Could you go into a little more detail about where you saw the strength in PC and console versus where some of the softness was? Was it more on recurrent consumer spending or unit sales? And how does that compare to past periods of macro weakness that you've seen?

So in terms of the strength of PC and console, really our strength has been in the catalog. I mean what we have said before is that -- what we've observed over this period of time is that folks that the big established franchises, particularly those that have been discounted did quite well over the last quarter, and that was our experience as well. So that part of the business did very well for us. A little bit tougher on sort of new releases that are still establishing their player basis. And when folks making difficult choices between games if they can afford to play, they're obviously going to gravitate towards things that they know that they're more familiar with. So, a little bit tougher on the new releases for the younger games. In terms of RCS, we already said on the mobile side, our in-app purchases were in line with expectations, and we continue to buck the trend in advertising. And we did experience some softness on the PC and console side in RCS. And again, that dynamic is what we expect that dynamic in this kind of economic environment. So really -- maybe it was a little bit more exacerbated than we originally expected, but we are continuing to see that.

Great. Thank you. And then just on the cost savings side, is the cost reduction program, is it particularly focused on the mobile business or various areas? Or is it kind of just general corporate overhead?

It's a combination of our corporate departments and also some of our publishing functions. So it includes all of our labels. And it's outside of the $100 million plus in synergies between Take-Two and

Great. Thank you.

Thank you. Our next question is from Drew Crum with Stifel. Please proceed with your question.

Okay, thanks. Hey, guys, good afternoon. Just sticking with

Yes, I think the way to characterize it is we have seen some improving trends and the way to describe it is it's really been some improvement off of the lows that we've seen in the past.

Okay. And then Strauss, some of your competitors have suggested the market is shifting towards these mega franchises. Curious if you agree with that premise? And does this in any way if you do, impact how you invest across your development pipeline? And are you inclined to hold back with the launch of titles until market conditions become more favorable? Thanks.

Yes, we emphatically agree. The strategy of our company is to make hits across the board. We believe that we have the best collection of owned intellectual property across console, PC and mobile in the marketplace. And our approach has always been to bring out new iterations of beloved franchises. We have 11 franchises that have each sold over 5 million units in an individual release, well over 65 that have sold over 2 million units in an individual release. I don't think anyone else can say that. And look, we have the highest grossing entertainment property ever created of any sort of within our four walls, thanks to the focus of Rockstar. So that is very much our approach. And the truth of the entertainment business is, whether you like it or not, the entertainment business is a top 20 business on a good day and top 10 business on a less good day. We need to be there and that has always been our strategy.

Thanks, guys.

Thank you. Our next question is from Omar Dessouky with Bank of America. Please proceed with your question.

Hi, everybody. So I'm looking at your grid, the grid of games that you plan to release from fiscal 2023 to fiscal 2025 and next to mobile, you have 38 games. And it looks like 10 of them were not

Sure. I'll take that one. So I would say, the aspiration for any title that we released in the mobile context would be the $100 million of annual bookings. But I can tell you for sure that, that won't be the case release, with that entire release. So our expectation going in, again, the -- how we release mobile is you take it out, you see how it does, you invest a little bit more, you revamp it, you rebalance it, you invest a little bit more, and then you grow from there. What we know that there are going to be titles that we put out that will fall on the mobile side. But the idea is that we need to put the titles out in order to find the ones that can reach that $100 million level or plus. So that is certainly -- that is the strategy, and that's going to be our path going forward. So that's still our expectation.

Okay. And it's -- do you think versus when you acquired

No, I don't think the business has gotten easier or harder. I think it's pretty much what we expected. As I said, hit ratios in mobile are low, we really good about what's being developed.

And just as -- I have one quick follow-up here. So some experts have noticed that Google has begun sending rejection notices for ads exposures and formats that are not compliant with its new better ads experience policy. This poll this allows interruptive interstitial ads among other practices, and it was announced back in July. So are you starting to see the effects of this policy for Rollic hyper casual games on Android?

We are not. We're largely compliant.

Okay. That's my question. Thank you.

Our next question is from Mario Lu with Barclays. Please proceed with your question.

Great. Thanks for taking the question. The first one is on RCS this quarter in terms of the growth came in a bit below expectation. You mentioned that

No, there's nothing really to point out. It was really across several of our console and PC games.

Okay. Got it. And then just a follow-up on NBA 2K. You mentioned that MyTeam's players were up 50% year-on-year, which is a fairly large amount. So are there any kind of main drivers to highlight there? And were these gains partially offset by declines potentially in MyCAREER mode? Or was it mostly additive? Thanks.

Yes. I wouldn't say that it would necessarily offset by declines in MyCAREER mode. I think that the goal for NBA is to -- and how we've been growing over the years and how our path to growth in the future is to get more players involved in more modes, so driving across all of the loans. Now we know that we're not going to get everybody to play the game a 100% across every single mode, but that is certainly the goal, because the more engagement, the better ultimately the RCS performance is for those titles and also the more loyal the audience and it's a much better path for us to grow. So our focus has really been on getting players across those modes, and we've had some great success, as you can see on -- not just on MyCAREER, but across the -- in MyTeam area, but across the board.

Great. Thank you.

Our next question is from Eric Sheridan with Goldman Sachs. Please proceed with your question.

Thank you for taking the questions. Maybe two, if I could. First, on the mobile front, obviously, we've lapped the launch of IDFA. And I wanted to get your perspective on whether you feel like, in terms of driving a mixture of user growth and in-game monetization and in-game engagement, whether you've successfully sort of realigned your marketing strategy in mobile to address a post-IDFA world or whether you're still thinking it's sort of a work in progress, so that once demand is back in the mobile landscape, you can sort of capitalize on it? That'd be number one. And number two, a competitor of yours talked about withdrawing or pulling back from the mobile shooter market earlier in the earnings season. I'd love to get your perspective on how you think about developing, implementing and sort of launching AAA titles either alongside traditional PC console titles in the mobile format? Or how we should be thinking about even mobile-only formats of what historically have been AAA type quality titles? Thanks, so much.

So in terms of the effect of IDFA, we've been living that for quite a while now. And I would certainly say that, that has stabilized. And I don't think we're expecting -- there's no surprises down the road that we're expecting at this point. And there's been some improvement in how we are able to target since then. So I think there's been some adjusting going on. I don't want to characterize that as we're sort of back to where we were, because that would be a mischaracterization. But we certainly feel like we've got our hands around it, and then we're going in the other direction. So that's positive in terms of our ability to target. I would also mention, too, that in the hypercasual space, it is a much wider funnel and targeting is not -- it doesn't require as much targeting as it does in the normal mobile business. So that's also helped our ability to attract new audiences.

Yes. And on the second part of the question, we've said all along, and I said it today, the hit ratios in the mobile business are very low. And when we announced the combination with

Thanks so much.

Thank you. Our next question is from Doug Creutz with Cowen and Company. Please proceed with your question.

Hey, thanks. Just in your commentary about some of the new release underperformance. You're essentially attributing to macro or at least partially due to macro, but there's been two other companies who have sort of had the same problem. You have several other patters that have had record launches in the quarter, and it seems from the data that's been released, overall console spending was pretty stable versus a year ago. What makes you think the issue is macro-related versus this is just the way the video game industry is going to be from now on? And if that's case, how does that cause you to rethink your pipeline going forward?

It's a really good question. What causes us to believe that it's macro related is that we don't just pull our expectations out of the year. We based our expectations on prior performance of similarly rated titles within that genre. And so in the case of certain of these titles, we've had great scores and terrific critical acclaim and yet the unit sales were lower than expected on an apples-to-apples basis by comparison to prior releases and prior periods. So that is -- that sort of leads us to believe, okay, that's probably a macro result. But I don't mean to imply for minute that quality doesn't matter, quality does matter and the biggest titles will obviously continue to perform with regard to market conditions. So what you're saying is, does that mean you should only put out blockbusters and anything that's short of an expected blockbuster, you can't put out. I think the answer is semi-yes. We can't put out something that we think is going to be a B title. It's never been the case. We have to put out AAA titles. However, not everything is ever going to be Grand Theft Auto. It just isn't going to be that way. And we have shown that we have the ability to launch new franchises. In the case of Borderlands or more recently, Tiny Tina's Wonderlands. Going back farther BioShock, from Rockstar, Red Dead Redemption. These are new intellectual properties, and we were willing to take the risk and support our creative team's vision and passion, and we've been able to create big hits. That's not changing. And there's nothing in our recent performance that leads us to say, we shouldn't invest in this way to the contrary. I believe we should continue to invest in this way. But right now, is the market more selective? Sure. In tougher times when food and fuel is more expensive and people are a little worried, they're going to be more selective. And when they're more selective, they're going to go to promotional titles and they're going to go to blockbusters.

Thanks, Strauss

Thank you. Our next question is from Clay Griffin with MoffettNathanson. Please proceed with your question.

Thanks. Good evening. It sounds like this has been mostly in monetization, as I apologize if I missed it, but it would be helpful just to get a sense of overall engagement in the quarter as a metric for the market right now. It sounds like apart from the new releases that some of your base titles actually had pretty solid engagement. Is that fair?

Engagement has definitely been strong across the board. And I would characterize it certainly as a modernization -- as a monetization issue. And we've seen that not just on the PC and console business, but also in the mobile business as well. So, that is specifically engagement that seems to be -- is not the issue for us.

Right. And just a follow-up on that. Is there anything that you guys have seen to suggest that Game Pass may be changing the way people engage with new titles or just a sense of if that has had an impact in terms of engagement in the quarter over the last several quarters?

I don't really think so. I mean, we don't make our frontline titles available day in date. We're thrilled to be in business with subscription services for our catalog titles at the appropriate time. We think that's the right way to support subscription. And subscription is still a relatively small business -- you're talking about businesses. I think the last announcement of Game Pass was 25 million subs. We're not talking about huge broad-based business yet. And in any case, no, I don't believe the business is cannibalizing our business.

Okay. Thank you.

Thank you. Our next question is from Martin Yang with Oppenheimer. Please proceed with your question.

Hi. Good afternoon. Thank you for taking my question. I have two. Can you first give us more details on

No, we're not seeing any regional differences, particularly. I'm not sure we've been looking for them though, because it's really early still.

Got it. Thank you. My second question is on the impact of more discounting in December. And how would you characterize the environment in the March quarter, is discounting still affecting negatively on the guidance for March?

I don't think that discounting in particular is driving our expectations for the quarter. What's driving our expectations for the quarter is just our perception of market demand.

Okay. Thanks, Strauss.

Thank you. Our next question is from Matti Littunen with Bernstein.

Just wondering if you changed your typical marketing approach for these new titles that launched in the holiday season and -- if not, do you plan to do that in the current quarter in response to what you're seeing in the market trends you discussed? Thank you.

No, we didn't change our approach to marketing. Our marketing approach varies title by title and reflects our view at any given time for what the opportunity is and in the context of the cost of the marketing programs. But if your question is, did we create a sort of self-inflicted wound by somehow spending less, for example, on marketing and getting worse results? The answer is no. But equally, it's not like we've created a self-inflicted wound by spending more on marketing and not getting results. We tailored the marketing to the opportunity. Unfortunately, the opportunity set was a little smaller than we thought.

Very clear. Thanks.

Thank you. Our next question is from Mike Hickey with Benchmark. Please proceed with your question

Hey, Charles, Karl, Lainie thanks for taking my questions. Two from each, just curious, specifically, I know you haven't called out titles, but for the quarter on the weakness in recurrent spend the Grand Theft Auto Online and NBA 2K Live Service, did they meet your expectations for the quarter? And have you changed your forward view of growth from those games? Obviously, they're a big portion of your ex-oil live service business. And the second question, on your cost reduction plan, $50 million, do you feel like that's sort of a starting point or you sort of grow that as you think about it more over time? Or do you feel like that's enough. Thanks, guys.

So for the quarter, our NBA business was in line with our expectations. Our other titles were a bit lower than what we had expected. As I mentioned, our PC and our console business for RCS was overall lower than what we had expected. And for the $50 million, this is like an ongoing cost reduction initiative. So we expect this number will grow over time. So efficiency is one of our core tenants as a company. So we're always looking for efficiency throughout the organization. And these are permanent and structural changes to the organization's overall corporate overhead structure, so these are expenses that we expect to reduce our overall structure over time.

Thanks, Lainie.

Thank you. Our next question is from Jason Bazinet with Citi. Please proceed with your question.

I just had a slightly longer-term question. Can you guys talk a little bit about whether or not you're a believer in sort of cloud gaming moving to the fore over the next five years? And, if so, what implications, if any, does it have on how you think about the business, your business? Thanks.

Yes. I mean, we’ve been believers in our gaming. We were one of the first licensees, if not first license -- licensor, sorry, to Stadia, to support that project. But remember, cloud gaming is a technology. It's not a business model. It's a distribution technology. And our view is, broader distribution is always a good thing in the entertainment business. If we can reach more consumers with our properties, we're happy to do it as long as the terms make sense. And I think broader distribution over time probably benefits us in any number of ways, including the cost of distribution, which I believe will go down over time. That said, I've never felt like cloud gaming would be size -- would represent a seismic change. Because I think if you're prepared to pay $60 or $70 for frontline title, you're also prepared to buy a console. And I think Stadia found that out. So bringing high-quality titles to consumers who don't have consoles will probably have an effect around the edges, but I don't think it will be a revolution in the business, I think it will be more an evolution in the business. And there's still technical challenges to be addressed.

Very helpful. Thank you.

Thank you. Our next question is from Matthew Thornton with Truist Securities. Please proceed with your question.

Yes, thanks. Hey, Strauss, another big picture question. As you look out over the next several years, maybe in the next 5 to 10 years, I'm curious, kind of, your thoughts on how AI can impact the business good or bad? Or again, what you see on the horizon as potential disruption opportunity? Just any thoughts there would be helpful, particularly how you're thinking about AI. Thanks, again.

You know, I'm the first person to be skeptical of other people's side. And I would like to note that, AI stands for artificial intelligence, and there is no such thing as artificial intelligence. All that said, I'm really excited about what we're seeing right now with ChatGPT and other leaps forward in artificial intelligence and machine learning. And I do think that we'll be and others will be creating tools that will enhance our development and probably reduce some of the costs for what we have to do today. But I don't think you're going to see it have an effect on the overall cost structure of the business, because I think it will just raise the bar. I think any time you make things easier, we're going to want to do more and our teams will want to do more. The belief among college students, the ChatGPT is not going to allow them to just make a query in sending their homework. The problem is -- the question is describe what actually happened on the night of Paul Revere's ride, if that's the question, and everyone gets the same question, which you do in class and everyone uses ChatGPT, whoops, everyone's going to submit the same assay last time I checked. And so ChatGPT is today's hand calculator. When I was a kid, there was no such thing. I hate to admit, but it's true. So I had to do math longhand. And then hand calculators came along and parents were up in arms that thought, 'Oh, kids won't have to learn math anymore. And the answer is yes, you still have to learn math, turns out. You absolutely have to learn math. Like you have a tool that makes it easier to do. And ChatGPT is the same thing. We are ushering in a very exciting era of new tools. And they're going to allow our teams and our competitors' teams to do really interesting things more efficiently. So we're going to want to do more. We're going to want to be even more creative. And no, it's not going to allow someone to say, please develop the competitor to Grand Theft Auto that's better than Grand Theft Auto, and then they will just send it out and ship it digitally and then that will be that. People will try, but that won't happen.

Okay. Maybe I'll sneak in one -- a second one, if I could, as well. Just really around productivity. Obviously, you guys are pretty far along in the return to office. When you step back and think about that big pipeline and all the projects that you've laid out, how do you feel like things are progressing from a productivity standpoint now that, again, you're pretty far along in the return to office. Thanks again.

We've been pretty flexible about return to office, and our teams have been great. One of the many wonderful things about working at Take-Two, the amazing people that we work with. We're more than 11,000 people strong around the world. And our attrition rate remains much, much lower than the industry average. And I think that's because -- this is an extraordinary place to work where we seek the best and the brightest on both the business and the creative side, and we encourage people to pursue their passions and excellence at the same time. So productivity is strong. Performance is strong. We probably never had a period this long with all of our titles showing up or performing. I believe in the last two years, we've had the best reviews and the best scores we've ever had. And that's why the business challenges are a bit frustrating, because our people are delivering. And we will deliver over time as long as we keep doing that, and that's the plan.

Thank you. There are no further questions at this time. I'd like to turn the floor back over to Strauss

Thank you for joining us today. I wish we were giving you better news across the board. There is so much good news here, and we're really proud of it. As I said just a minute ago, the thing we're most proud of is our phenomenal colleagues all around the world to whom all of us are so grateful. And as for our results, we plan to do better. We thank you for your support.