Q4 2023 Quanterix Corp Earnings Call
Participants
Vandana Sriram; CFO; Quanterix Corporation
Masoud Toloue; CEO and President; Quanterix Corporation
Matt Sykes; Analyst; Goldman Sachs Group, Inc.
Puneet Souda; Analyst; Leerink Partners LLC
Kyle Mikson; Analyst; Canaccord Genuity LLC
Sung Ji Nam; Analyst; Scotiabank GBM
Presentation
Operator
Good day and thank you for standing by and welcome to the Quanterix Corporation Q4 2023 earnings conference call. At this time, all participants are in a listen-only mode. After the speakers' presentation, there will be a question-and-answer session. (Operator Instructions) Please be advised that today's conference is being recorded. I would now like to hand the conference over to your speaker today, Vandana Sriram, CFO. Please go ahead.
Vandana Sriram
Thank you and good afternoon. With me on today's call is Masoud Tolou, President and CEO of Quanterix. Before we begin, I would like to remind you of a few things: this call will be recorded and a replay will be available on the Investor Relations section of our website. Today's call will contain forward-looking statements within the meaning of the US Private Securities Litigation Reform Act.
These forward-looking statements are based on management's beliefs and assumptions, and on information available as of the date of this call. We may not actually achieve the plans, intentions, or expectations disclosed in our forward-looking statement. Forward-looking statements involve known and unknown risks, uncertainties, assumptions, and other factors that may cause our actual results, performance, or achievements to be materially different from any future results, performance, or achievements expressed or implied by the forward-looking statements.
The risks and uncertainties that we face are described in our most recent filings with the Securities and Exchange Commissions. To supplement the company's financial statements presented on a GAAP basis, the company has provided certain non-GAAP financial measures. Management uses these non-GAAP measures to evaluate operating performance, in a manner that allows for meaningful period-to-period comparison and analysis of trends in its business. The company believes that such measures are important in comparing current results with other periods' results and are useful in assessing the company's operating performance.
Non-GAAP financial information presented herein should be considered in conjunction with, as not as a substitute for, the financial information presented in accordance with GAAP. Investors are encouraged to review the reconciliation of these non-GAAP measures to their most directly comparable GAAP financial measures set forth in the appendix of the presentation posted to our website and in the earnings release issued today. I will now turn the call over to Masoud.
Masoud Toloue
Thank you, Vandana. Starting with Q4 of 2023, we hit record consumables production, delivering $17.5 million in revenue, contributing to $31.5 million of total revenue. Non-gaap gross margins improved 515-basis-points versus fourth quarter prior year, and cash used was $6.4 million, leaving us with over $300 million of liquidity on our balance sheet, and in a strong position to deploy capital for growth investment. As a reminder, we began a corporate transformation process six quarters ago, with a focus on three core principles: quality, innovation, and positioning Quanterix to unlock the value of the transitional market.
In '23, we built newly formulated assays, improving margins, and manufacturability. Testing capacity in our accelerator and manufacturing output improved by 50% and 300% respectively, each with new capacity to grow three-fold from where they are today. New assays rolling off production lines are now getting into the hands of our first customers. These accomplishments over six quarters are the result of our team's focus, determination and strong operating discipline.
The efforts have positioned us for better quality, higher throughput, faster innovation, and are reflected in our financial performance for '23, with revenue growing 16%, non-GAAP gross margin improving over 1,300-basis-points, all while we reduced cash burn by $40 million in '23, as compared to '22. In 2024, our three strategic objectives are growth in menu, new innovation in tech, and Alzheimer's disease diagnostics. Starting with the first objective, we intend to leverage our newly built product development engine by introducing approximately 20 new assays by the end of this year. This is not a small feat.
Second, we're allocating resources to expand our technology platform, while 4-Plex to 5-Plex satisfies the vast majority of neuro programs today. Our goal is to have Simoa, not just in specialty neuro labs, but Simoa in all labs. We're working on multi-channel lossless resolution, which means no loss measurement of the lowest quantity of protein that can be distinguished from the absence of that protein across multiple channels. Developing this would be a significant breakthrough, expanding plex, maintaining sensitivity, improving footprint, and reducing cost will enable research and clinical work in immunology and oncology laboratories.
I expect we'll discuss more toward the end of the year. Finally, on diagnostics, our stated goal is to build the global testing infrastructure for Alzheimer's disease. Identifying patients by invasive methods, including pattern lumbar puncture is not scalable and limits access to newly available Alzheimer's disease modifying therapies. There is now abundant evidence showing non-invasive testing methods using blood-based biomarkers are equal to or better than invasive methods, and we believe there will be the best solution for broadening access of therapies to patients.
It has also become clear that identifying patients early in the disease cascade results in better patient outcomes. And this is where we believe similar technology will play a critical role. I want to make an important point here: Simoa digitally interrogate proteins and [Frampton] leader wells, providing exquisite signal-to-noise separation and amplitudes a couple of orders of magnitude beyond noise floor, where other technologies reside.
The combination of ultra sensitivity and precision, enables much lower limits of detection and quantitation than other technology. So, as part of a diagnostic follow-up, if a Simoa p-Tau 217 test is used throughout the diagnostic workup, a physician can track patient levels if symptoms progress or if they undergo treatment. Other tech may not have the sensitivity or precision to do this across the full range of p-Tau 217 concentrations that are diagnostically relevant. Precision at the very low concentration levels by p-Tau 217 is present in blood, allowed similar assays to provide high diagnostic accuracy, given the need to resolve small changes around cutoffs corresponding to low and high likelihood of amyloid pathology.
Our test uses a two cutoff design as recommended by the NIAAA and other expert groups, providing a high confidence result, extending to both ruling in and ruling out amyloid pathology. This has the potential to reduce approximately 70% to 80% of PET scans and lumbar punctures during the Alzheimer's diagnostic process. Over the next two years, we will allocate $20 million of capital to advance the access of our diagnostic tests. We will also focus our clinical studies for diagnostics in two main areas: One, development and validation of a multi-marker blood test; and prospective studies with health systems to establish blood-based biomarkers as part of a routine Alzheimer's diagnosis and treatment.
For the multi-marker test development and validation, we're wrapping up the first two phases of two important studies: Bio-Hermes and CANTATE. Bio-Hermes is a prospective study that enrolled individuals from 17 sites across the US, including significant numbers of underrepresented populations and collected blood samples, as well as PET images. Phase 1 of the study is now complete and with publications expected later this year. CANTATE is our ongoing collaboration with researchers at the Amsterdam Medical Center, where blood is being collected, as well as CSF, with corresponding biomarker measurements to assess amyloid. We expect to announce results from Phase 1 of these studies later this year.
Quanterix is also sponsoring and taking part in several new studies to establish blood biomarkers, as part of routine Alzheimer's diagnosis and treatment. In addition to helping expand the adoption of laboratory-developed tests based on Simoa technology, such as plasma 217, and our planned future multi-marker test offering. These studies are expected to provide clinical validation data, support an FDA submission for Alzheimer's blood biomarker diagnostic. In 2024, we will focus our efforts on building out our commercial capabilities to support diagnosis of Alzheimer's disease, and what we would expect to be a corresponding uptick in the adoption of new therapies.
We've already onboarded a dedicated commercial team and they've hit the ground running. We're pleased to announce that we're now working with five leading health networks in the US, an important step that we build out the infrastructure that supports testing for this disease. Each will have access to the LucentAD tests at our Cleo-certified lab or our instruments and assays to develop and validate their own laboratory-developed tests. These networks will provide reach to over 140 hospitals, caring for approximately 21 million patients. I will now turn the call over to Vandana to cover our financial results.
Vandana Sriram
Thank you, Masoud. I will now cover additional details of our fourth quarter and full year performance and will provide guidance for 2024. As Masoud mentioned, the 2023 year end capped our corporate transformation, and we've made significant execution progress over the six-quarter program. Our total revenue for the fourth quarter 2023 was $31.5 million, an increase of 22% from the fourth quarter of 2022. Our consumables revenue increased to $17.5 million or 56% compared to the fourth quarter of last year.
This was a record quarter and we noted continued strong demand for our consumables offering, coming from high interest in supporting neurology. Instrument revenue was $3.3 million, a decline of 39% over the fourth quarter of 2022, similar to other tools companies and continuing the trends we saw in the second half of 2023. We added net 20 instruments to our installed base in the fourth quarter of 2023. Fourth quarter revenue from our Accelerator lab was $5.6 million, an increase of 71% over the fourth quarter of 2022.
We continue to observe strong demand for our accelerated services, and this has been especially valuable to us in the current environment, where tools have been capital constrained. We are unique in our industry, and that CapEx pressure has not limited customer access to our Simoa technology. When the budget environment changes to be more favorable to capital purchases, we expect some rebalancing of instrument and service mix.
Moving on to gross margin for the quarter, our GAAP gross profit and margin was $16.8 million and 53.2%, respectively, for the fourth quarter of 2023, compared to $12.6 million and 48.8%, respectively, in the fourth quarter of 2022. Non-gaap gross profit and margin was $14.7 million and 46.5%, respectively, in the fourth quarter, as compared to $10.7 million and 41.3%, respectively, in the fourth quarter of last year. The year-over-year margin expansion reflects the impact of our transformation efforts and favorable mix from increased sales of higher margins, consumables, and Accelerator services. Our fourth quarter 2023 GAAP operating expenses, but $33.7 million, compared to $34.5 million in the fourth quarter of 2022.
The fourth quarter of 2023 included one-time impairment and restructuring charges of $1.6 million, primarily from a lease impairment, as compared with similar charges of $9 million in the corresponding prior period. Excluding the impact of impairments, GAAP operating expenses increased $6.6 million and non-GAAP operating expenses increased $6.4 million due to higher R&D and personnel-related costs. Our operating loss declined from $22 million in the fourth quarter of 2022 to $17 million in the fourth quarter of 2023, due to higher consumables and accelerator sales and improved gross margin. For the full year, these results bring us to $122.4 million of revenue, delivering 16% growth.
Now, I will provide some additional context on full year revenue. 62% of our revenue came from North America, 26% from Europe, and 12% from Asia Pacific, with mid-teens growth across all geographies. Over 80% of our revenue came from neurology, where we continue to have highly differentiated position. Moving on to liquidity, we ended the fourth quarter with $323.9 million in total cash, cash equivalents, marketable securities, and restricted cash, a net usage of $6.4 million during the quarter, as compared to cash usage of $5 million in the fourth quarter of 2022. For the full year, our cash usage was $17.4 million, a reduction in cash usage of $40.3 million.
We continue to have a strong balance sheet with ample cash to fund growth. Let's turn to guidance for 2024. We expect full year revenue in 2024 to be in the range of $139 million to $144 million. This guide is for our research on new business and does not include revenues from diagnostics testing, which, to date, have not been material.
Diagnostics is a nascent area closely correlated to therapy adoption, and at this time, it is premature to provide guidance. However, with the commercial team that is now in regular contact with neurology centers and hospital systems, we are in a unique position to measure blood testing uptake, and we will provide quarterly updates on our progress. For the full year, we expect GAAP gross margin to be in the 57% to 61% range and non-GAAP gross margin to be approximately 51% to 55%. As with revenue, this guide excludes margins from diagnostic testing.
Lastly, on to capital allocation and cash usage. We expect our cash usage for the full year to be in the range of $25 million to $30 million, an increase in cash usage of approximately $10 million at the midpoint. As Masoud mentioned, our priorities in 2024 will be growth in menu, innovation in tech, and ramping up diagnose. We will spend approximately $5 million to $10 million on the first two initiatives, and approximately $10 million to $15 million on diagnostics, with additional spend on diagnostics expected in 2025.
This approximately $20 million investment in our strategic initiatives will be offset by approximately $10 million of reduced cash burn from revenue and margin growth. We will continue to drive our [REO] business to reduce cash burn and still expect to achieve cash flow breakeven on this business at approximately $170 million to $190 million of revenue. This guide includes the incremental investment in menu and innovation. At the same time, we will invest capital to grow diagnostics, and consistent with our comments on revenue, it is premature to provide exact cash burn breakeven point for diagnostic.
In summary, we are aligning our capital allocation priorities to our areas of opportunity, and we will put our capital to work to drive growth in these exciting areas. I will now turn it back over Masoud before we take you questions.
Masoud Toloue
Thank you, Vandana. I want to say we're very proud of the talent density at Quanterix. It's the super team who have made difficult and painful changes in the company. This would not have been started or completed if we did not believe in the output of work. Our mission is to provide the tools to enable discovery and improve patient outcomes.
This is not just a statement that goes on a web page or wall. This is very real and tangible and our team is in active delivery mode. Now, we can take some questions.
Question and Answer Session
Operator
(Operator Instructions) Matthew Sykes, Goldman Sachs.
Matt Sykes
Hey. good afternoon. Thanks for taking my questions, congrats on the Q4. And maybe just starting out, I want to go back to the announcement you guys made on Monday about the health systems, and just a couple of things: One, is that included in the guide? I'm assuming that's the diagnostics portion that you're not including; and Two, how do you think about one sort of the timing of that revenue coming through?
And the other point is, in terms of the mix, I know you had said it could be instruments, assays, lab center lab. How are you thinking about the potential mix of that partnership over time? And I've got a follow-up.
Masoud Toloue
Hey, Matt, I think the partnership announcements we had a couple of days ago was super exciting and it did two things: One, the versatility of our offering is two-fold. First, we're able to offer the platform and the testing to 17 tests and enable hospitals to do their own testing. But at the same time, we're also enabling access to our Accelerator lab, where hospitals or physicians can send samples to the Lucent lab, and we're able to offer services there. So it's a really unique offering, and we're able to keep in touch with neurologists and really stay up to date on the latest of what's happening.
You're right in that this is a diagnostics. Revenue, that's not included in the guide or not put into the guide. Right now, we're not including guidance for diagnostics. And then, from a mix perspective, are you referring to the mix on test send-out versus enable limits or some other?
Matt Sykes
Yeah, that mix, but how many do you expect to buy instruments to do it themselves? How many do you think will send out to you? Where do you think the bulk of the revenues could come from for this partnership?
Masoud Toloue
Yeah, that's a good question. I mean, the five that we listed, there's different ranges, so some of them are going to start as test send-out as they're putting together a platform and getting their test up and ready their own laboratory. And then, some want to offer testing right off the bat with our platform. So it's a little bit of mix, and it's still early to get a good sense of how that's going to shake up for the year.
Matt Sykes
Got it. And then, maybe for Vandana, just maybe some color on the balance of consumable versus instrument versus lab services within that 2024 guidance. How do you see that kind of shake out? I know you made some comments on the capital equipment environment, which are all very well aware of. But just any color on what you perceive to be that mix shift over the course of the year?
Vandana Sriram
Yeah, so at this point, we're really looking at 2024, at least in the first half, being very similar to the mix that we saw in 2023. So still expecting to start the year with some amount of constraints on the instrument side. But again, seeing really, really good demand on the accelerator side, we have a lot of interest and a lot of quoting activity going on right now for accelerators. So we continue to see accelerators be really strong, and consumables also come out pretty strong.
Now, consumables in the initial part of the year will be all about converting customers to the new assets. So we expect there to be some transition period there, we will have to support customers on the older assays and then eventually bring them on to the new assays. So there might be some amount of choppiness in the first quarter as we get through that. But from that point onwards, we expect our consumables growth to be very steady.
Matt Sykes
Got it. Thank you very much.
Operator
Puneet Souda, Leerink Partners.
Puneet Souda
Yeah, hi, Vandana, Masoud, thanks for taking the questions. So a couple of questions here, maybe first on just FDA submission. What does that look like and the timing of approval on p-Tau 217, what sort of traction you're seeing there? And should we assume that that will be one of the standalone test or would be a multi-marker tests that comes out of the FDA? I recognize that 217 that they'll be LDT already. So I just want to understand how you're contemplating, you know, FDA approval for the product and then I have a follow-up.
Masoud Toloue
Yeah, hi, Puneet, thanks for the question. So 217, as you said, it's already an LDT, and we've committed to submitting the 217 biomarker to the FDA this year. We've begun some discussions. All of our clinical trials, or the prospective trials that we're running, are designed to get additional data and validation for IBD submission on 217, and that's something we're going to do this year.
And from a multi-marker standpoint, we've also said that in '24, we'd release a multi-marker LDT, as well as then the future to something on IBD offer multi-marker. But from a sequencing standpoint, we have the 217 LDT today, FDA IBD submission, multi-marker LDT, and then subsequent submission for that. And so, the Bio-Hermes, the CANTATE, and then a couple of the new collaborations we're working with now, all provider of clinical evidence development for not just IBD, but reimbursement in the future.
Puneet Souda
Okay, that's helpful. And then maybe a bigger question here is, based on the feedback that you're getting in from the field already, can you talk a little bit about how do you see the adoption of further 217 LDT? I know you have commercial folks out there already and collaborations with some of the larger centers. I think the bigger question here is, you know, with the [Cambian mAb] expectations for the street, some have come down, they've settled, but should I'm just trying to get a view as to what you're hearing versus should we look to the drug adoption to see how things trend?
Masoud Toloue
Yeah, I think drug adoption is, it's hard to say exactly how this correlates, but I think drug adoption is probably a decent proxy for just testing patients. That being said, there is I mean, we are speaking to neurologists and these hospitals. One of the main things that comes across is just the demand and need for additional tools. And they're incredibly clear that, I mean the data speaks for itself ,that the 217 test is superior to any other biomarkers out there.
And if you're doing a study and you want to look at a patient in the very early stages and monitor them over a period of time, you need a solution that's going to be able to look at levels that are fairly low and high sensitivity, all the way in the lifecycle as blood levels of this 217 increase. And so that's clear, and that's what we're hearing. There's also, recall that a good part of our business is clinical trial work, doing additional, having additional efforts with the pharma companies that are looking at combinatorial therapies, other Alzheimer's therapies, and we expect that to have a research tailwind, as well as more and more clinical trials.
So from a patient measurement perspective, I think drugs are a decent proxy. we'll follow that, and we'll have more information as the year goes. But we think that with these new therapies, it's just a start for Alzheimer's.
Puneet Souda
And then, just my last one on the ROE technology that you talked about the multichannel lossless resolution, can you just remind us what plex you are targeting for that?
Masoud Toloue
Yeah, I would say mid to low plex. I mean, one of the key guiding principles of Quanterix is that we're very translational. So we were involved in identifying these markers, and the translation of them support of these markers for therapies. And then eventually testing and diagnostics.
And so, when you look at what or how you do that, it's usually anywhere from where we are today in the 1 to 4, 5 Plex to two, three times more than that. And anything more than that, really, becomes a discovery application and we're more on the translation side. So that's where we're focusing when we look at future technology.
Puneet Souda
Okay, helpful. I'll hop back into queue. Thanks.
Vandana Sriram
Thanks, Puneet.
Operator
Kyle Mikson, Canaccord Genuity.
Kyle Mikson
Hey, thanks for the questions, congrats on the year. I want to ask a longer-term question for you, Masoud, and that is the path to reimbursement for the neurology test portfolio. I guess, this is a multipart question, so what's the current plan that bind to this point, including the CBT that's expected this year? Second, there's other companies with protein-based tests with Medicare coverage, but how does the recent [movie ex] proteomics OCD impact Quanterix, possibly?
And Third, and finally, you're not trying to get approval for LucentAD p-Tau 181, but are you still trying to get reimbursement for that? Like, how would all this work for that, particularly because that's more of a near-term thing? Thanks.
Masoud Toloue
Thank, Kyle. Yeah, so from a reimbursement standpoint, as you stated, we're seeking a CPT for our Alzheimer's blood biomarker, specifically the 217 protein. Now, really abundantly clear that 217 is the superior marker versus 181. So a lot of our focus has shifted on 217 when it comes to testing. That being said, 181 is still available as an LDT, and there's a lot of interest in clinical trials work for 181, and so that that's still there.
But from a reimbursement standpoint, we've put some of our focus on 217. Now, that's the first step. And then, we're doing all this work with this prospective study in collaboration with the VUMC and CANTATE, I know there is a multi-marker algorithm, so several markers together that could provide a differential diagnosis. And maybe, potentially, sensitivities that could be greater than any single biomarker. And then that's its own reimbursement schedule.
Kyle Mikson
Okay. (multiple speakers)
Masoud Toloue
We were super pleased that these multi-marker algorithms are picked up all the excess, obviously, well respected and that read through was very important. We think it's important for the field and validates that path run.
Kyle Mikson
Perfect. Thanks a bunch. Just another one, I guess, diagnostics. First, just confirm, please, if the 217 test has enough data for and for the approval, for reimbursement. And I know you got the CANTATE and Bio-Hermes, is that going to be enough do you think? (multiple speakers)
Masoud Toloue
Yeah, we are very confident with the 217 results. We've published a white paper with a lot of some results that we have on Bio-Hermes (technical difficulty) and the Amsterdam cohort together. And so, when you combine those two cohorts, we'd looked at something in the over 850 patients. And we had sense and spec above 90% from across the board, with accuracy that rounded up to around 91%. So we think the data for 217 is solid.
Kyle Mikson
Great, and final one for Vandana, I think the guidance is something like maybe $10 million to $15 million or so million for assume for diagnostics spending for investment in '24. That means, like I think it's about $5 million for '25. If you could just walk through how you're allocating diagnostic investments, specifically, it would be interesting to hear for the next two years? And then secondly, if you just, hypothetically, if you get any diagnostic revenue this year, would that come in at a negative gross margin? Thanks.
Matt Sykes
Yeah, so on diagnostics, we had signaled earlier that we would spend a total of approximately $20 million between '24 and '25. For 2024, most of that spend is on the commercial side. (technical difficulty) already onboarding our team that happened late last year, so we'll have full year (technical difficulty) of cost for that team, as well as everything that's needed to really get the message out and to get the right traction on the commercial side. (technical difficulty) It would be some amount of infrastructure portion of the billing ready and all those kinds of things, but it's primarily around getting feet on the street and getting that going.
And then similarly, for 2025, we expect the cost will be along those lines, really more to support that what it takes to get the reach of the test out. We think we have enough capacity at Accelerator (technical difficulty). We don't think there's much more needed from a footprint perspective. Having said that, one thing I do want to add is, we're somewhat fortunate that we have a strong balance sheet. So we're going to pace the diagnostics opportunity we have developed.
If it moves faster and it's worthwhile to spend more money on it, we'll move a lever. If it's moving slower and we need to pull back, we're going to do that as well. So we'll continue to pace this, but this is kind of our broad framework for now. And then, to your question on margin on diagnostics, we don't expect margin at this stage to be negative or overly dilutive to our portfolio, but we just (technical difficulty) don't know enough about it right now.
So as we gather more information and as we start (technical difficulty) see more of that, so (technical difficulty) come back in, we'll have a better sense of what it looks like.
Kyle Mikson
Okay, that's awesome. Thanks, guys.
Masoud Toloue
Thanks, Kyle.
Operator
Sung Ji Nam, Scotiabank.
Sung Ji Nam
Hi, thanks for taking the questions. So just on the CANTATE and Bio-Hermes studies, you touched on it a little bit, but could you elaborate on what are the endpoints being measured or what questions are being asked for the Phase 1 of the trial? And then, and what are the next steps for both first trials?
Masoud Toloue
Hey, Sung Ji. So the clinical sample sets that we look at include patients with MCI and AD dementia, and that's the Amsterdam dementia cohort. And then we recruited individuals with MCI and mild AD in the Bio-Hermes trial. So the ADC, or the Amsterdam cohort, our memory clinics, where they looked at CSF and then the Bio-Hermes, they had PET for embolics data. So each of those patients receive CSF or PET, and they were compared to our test from a diagnostic standpoint.
And then using those, we establish clinical thresholds and came up with the specs of our platform of our test. And so that's Phase 1. And then, what we're doing is on the second phase before CANTATE, we're enrolling patients' prospective patients for memory centers to be able to look at this on a multi-marker setting. So that going beyond just single marker but testing four markers or to five markers at once.
Sung Ji Nam
Got you, thank you. And then, just was curious, I mentioned in the press release that really on launching the p-Tau 217 blood-based diagnostics on the Quanterix platform. Are they using other platforms as well or are they pretty much to solely using the Simoa platform for now?
Masoud Toloue
Yeah, we're only aware of the Simoa platform for their 217 diagnostic tests. I think published some very interesting data at the last conference, it was a nice poster presentation that they had. So that's all where we're at.
Sung Ji Nam
Got it. And then just lastly, on the new platform under development, the increase of plexity, is that based on the Simoa platform or the planar array platform? Or is it something totally different?
Masoud Toloue
Yeah, based on and the Simoa technology and the Simoa platform, so it's the single molecule resolution, but lossless sensitivity across multiple channels. So typically, when people look at things and you start to multiplex, you lose resolution as you add plexes. And so, our goal with high sensitivity and precision for these key biomarkers is to make it lossless, and so it's based on that platform and the original technology, which was invented in the vault lab.
Sung Ji Nam
Got it. Thank you so much.
Vandana Sriram
Thanks, Sung Ji.
Operator
Thank you. (Operator Instructions) I'm showing no further questions. This is going to conclude today's question-and-answer session. This is also going to conclude today's conference call.
