管理層發言
Good day, and thank you for standing by. Welcome to the Pattern Second Quarter 2026 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. To ask a question during the session, you will need to press *1 on your telephone. You will then hear an automated message advising that your hand is raised. To withdraw your question, please press *1 again. Please be advised that today's conference is being recorded. I would now like to hand the conference over to your first speaker today, Hamish Chung, Vice President of Finance. Please go ahead.
Thank you, operator. Good afternoon, and thank you for joining Pattern's earnings call for the second quarter 2026. Before we begin, I would like to remind everyone that today's discussion may contain forward-looking statements based on our current expectations, assumptions, and forecasts about future events. These forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from those projected. Please refer to our latest filings with the Securities and Exchange Commission for more information on these risks and uncertainties. We may also refer to certain non-GAAP financial measures. A reconciliation of these non-GAAP measures to the most directly comparable GAAP measures can be found in our earnings release. We will focus our remarks today on the key highlights and drivers. Additional detail is available in the earnings release. Joining us today are David Wright, our cofounder and Chief Executive Officer, and Jason Beesley, our Chief Financial Officer. Today's earnings is being webcast, and a replay will be available on our Investor Relations website following the call. Following our prepared remarks, we will open the call to questions. I will now turn the call over to our CEO, David Wright. David, please go ahead.
Thank you, Hamish, and good afternoon, everyone. We delivered another record quarter. In Q2, revenue grew 47% year over year to $877 million. Adjusted EBITDA grew faster still, up 54% to $54 million. That is the fourth consecutive quarter of adjusted EBITDA outpacing revenue. Before Jason takes you through the details, let me start with net revenue retention. Then I will discuss the mix of that revenue. NRR is how we measure how well the machine is working. In Q2, NRR reached another record at 129%, up from 127% last quarter and 118% a year ago. Against the long-term target of 115%, those are pretty extraordinary numbers. We hold ourselves to NRR because it measures what matters most: the outcomes we deliver for our brands. When our brands win, we win. They stay with us. They expand with us. And that record is the most persuasive thing our teams bring to the next brand considering Pattern. Strong partner results create a reinforcing cycle. Rising revenue across new marketplaces and geographies generates both data and logistics scale. The data gives us higher signal density. The scale gives us lower cost and faster transit times across the network. All of it starts and ends with being obsessed with our brands' outcomes. Inside the 47% revenue growth, three strategic highlights are worth calling out. First, international. International revenue grew 87% year over year to $110 million, our first quarter ever above $100 million. Second, non-Amazon. Non-Amazon revenue grew 93% year over year with strength across Tmall, TikTok Shop, Walmart, and coupon channels. And third, SaaS, logistics, and other. That line grew 123% year over year to $17 million. It is still a small share of revenue, but it deepens what we do for each brand and gives us optionality as a business. In short, our model is working. We delivered another quarter of record results and we are again raising our outlook for the full year. Jason will walk you through the specifics. Since day one, our objective has been the same: achieve exceptional brand outcomes by optimizing the four levers that drive commerce — traffic, conversion, price, and availability. What makes that repeatable is an ontology, and we believe ours is one of the most robust in ecommerce. The AI models will keep improving; the ontology keeps compounding regardless. Our ontology has three layers, and we have 44 patents issued or pending across them. Number one, the data layer: 91 trillion data points accumulated across 13 years of execution in hundreds of brands, geographies, and marketplaces. Second, the semantic layer: the entities and the mapped relationships between them — traffic against inventory, competitive position against conversion. This is what makes the data reasoning-ready rather than merely stored. And third, the execution layer: Pattern Intelligence, or PI, which we launched in May. PI runs a sensor-actor framework across those relationships and writes governed actions back to the marketplace — millions a day on behalf of our brand partners. With PI's release, brand partners also have interactive visibility into that execution. They can review, approve, and modify inputs. Measurement runs in the execution layer. As part of our advancement in that layer, in Q2 we were awarded a U.S. patent covering True ROAS, our true return on ad sales methodology. True ROAS isolates what an ad actually generated net of organic conditions, competitive dynamics, and long-term incrementality, so actions can be graded on incrementality, not just attribution. True ROAS pairs with Destiny, our patented ad tech platform; measurement feeds allocation, and allocation drives durable organic ranking. In April, we were named TikTok Shop's Strategic Partner of the Year. More than 100 of our brand partners now sell on TikTok Shop, and that number is growing every quarter. Social commerce has become a meaningful channel for new brand partner acquisition, particularly in beauty and fashion. As of last week, through ROI Hunter, which we acquired last December, our brand partners can advertise in ChatGPT. From a single platform, they can reach consumers across Meta, Google, Snap, TikTok, and now ChatGPT. Now I would like to give you a few examples of brand successes. We accelerated a U.S.-based prestige skincare brand from $5 million to $15 million in revenue over three years. These results were driven by a combination of improvements including increasing conversion from 9% to 13% — a 36% lift — improving in-stock from 91% to 99%, and subscribe-and-save revenue doubled. One more example: a U.K.-based sports nutrition brand started with us on a single marketplace in Australia. Today, we manage their ecommerce business across 13 countries, including their flagship market in the U.K. That is a pattern we see consistently: brands start with us in one market and expand globally as their confidence in Pattern grows. Zooming out to our long-term strategic positioning, we are tracking the shift from discovery to transaction within large language models closely, and we are making two long-term investments to position Pattern to win in both. The first is commerce infrastructure-as-a-service. Every agentic transaction has to be fulfilled with real-time inventory, forward and reverse logistics, and customer interactions. We operate that layer today, and we are extending it to agentic shopping. The second is our plan to continue expanding our brand agentic commerce acceleration capabilities, which optimize brands for LLM surfaces and carry that same infrastructure underneath. Pattern is building for both: the intelligence to win on LLM surfaces and the infrastructure to meet customer expectations. Before I hand it over to Jason, I will close with the point I care about most. Ecommerce is a team sport. As a matter of fact, all businesses are a team sport. Everything you heard today came from an exceptional team at Pattern. Culture and execution are the same thing. In the last few months, U.S. News & World Report named Pattern one of the best companies to work for in 2026. We also ranked number nine on America's Top 100 Most Loved Workplaces of 2026 — our second year in the Top 100. I am proud of what we are building and even more proud of the team building it. Jason, over to you.
Thanks, David, and good afternoon, everyone. Q2 was another record quarter for Pattern on many fronts. We continue to see broad-based strength across brand partners, geographies, and marketplaces and delivered $877 million of revenue, up 47% year over year. Adjusted EBITDA grew 54%, outpacing revenue growth for the fourth consecutive quarter. Our performance gives us confidence to increase our full-year outlook for both revenue and adjusted EBITDA. Regarding Q2 growth, I will start with our biggest revenue driver, existing brand partner revenue. We are excited to report that we delivered another record NRR of 129% for our brand partners, up from 127% in Q1 and 118% a year ago. We have three distinct drivers of that growth. Technology-driven optimization remains the foundation of our growth formula and primary driver. Our unified AI-native intelligence layer monitors and acts across the marketplaces we operate in, driving stronger conversion, traffic, and availability. Because it operates across multiple variables simultaneously, the impact compounds. We also grow by expanding marketplaces and geographies. Embedded in our international revenue growth of 87% to $110 million in the second quarter is a milestone worth noting: this is our first quarter with international revenue above $100 million. One highlight across our international regions is Asia. We entered our first Korean marketplace in 2019, and over the past seven years we have grown and now operate in 20 marketplaces across China, Hong Kong, Korea, Malaysia, Japan, and Singapore. Not only are we building on our success in existing markets, we are expanding into new markets and continuing to accelerate our growth. On top of our financial success in the region, we also established ourselves as a key partner for domestic marketplaces. For example, Pattern was the only non-China-based company named a Gold Star service provider for the health category by Tmall. Finally, expanding product selection from our brand partners — introducing more product lines and new products on existing marketplaces — is another growth driver. These opportunities come every year and can vary in timing across quarters. We are pleased with revenue growth related to new brand partners across many categories, which tracked at a similar pace to last year. We also grew SaaS, logistics, and other monetization revenue up 123% in Q2 to $17 million. Turning to operating expenses and profitability: Adjusted EBITDA was $54 million in Q2, up 54% year over year. Of note, we realized costs in the quarter related to Accelerate, our annual global ecommerce summit, startup costs related to our East Coast facility, and increased R&D investment. Our East Coast fulfillment facility is now operational and early throughput is in line with our goals. Excluding stock-based compensation and related taxes, R&D expense was $12 million, up 89% year over year. We continue to invest ahead of revenue in our data infrastructure, PI expansion, and AI capabilities while improving cost leverage in other areas. Variable cost components — cost of goods sold, marketplace commissions, and fulfillment — grew slightly slower than revenue, consistent with Q1. This was primarily driven by revenue mix across various products and other monetization strategies. Turning to cash flow: for the trailing 12 months ended June 30, we generated $136 million of operating cash flow, up 76% year over year, and $106 million of free cash flow, up 92% year over year. This was driven by our operating results, improved inventory turns, and tax-related benefits from the stock-based compensation expenses recognized at last year's IPO. We ended Q2 with $346 million in cash and cash equivalents, no outstanding debt, and $150 million of borrowing capacity. Our balance sheet continues to be a strategic asset. Turning to our outlook: the outperformance in Q2 was broad-based — existing brand partner revenue acceleration, new brand partner revenue growth, strong non-Amazon international results, and overall healthy execution across the platform. Our recent performance and the momentum we are carrying into the back half gives us confidence to raise our full-year outlook. We now expect full-year revenue in the range of $3.4 billion to $3.5 billion, representing 37% to 38% growth year over year. As I mentioned previously, our year-over-year comps get harder in the second half; we will lap the record growth rates from last year in Q3 and Q4. We expect year-over-year revenue growth to moderate to the 30%-plus range, which is reflected in our outlook. We are also raising our full-year adjusted EBITDA outlook to approximately $211 million to $213 million, representing approximately 38% to 40% growth year over year. We are continuing to grow the company in balance and we expect full-year adjusted EBITDA margin accretion even as we continue to accelerate our R&D investment. We are extremely pleased with our NRR performance of 129% and our updated outlook implies that the ending point of NRR this year will be 123% to 124%, above our long-term target of 115%. We continue to expect NRR to slowly moderate over the next few quarters based on the tougher comparables I already mentioned. When looking at Q3, it is important to note that Q2 benefited from large marketplace promotional events — Amazon Prime Day, Walmart Deals, and Target Circle — moving from the third quarter into the second quarter this year. This represented approximately four points of growth shift from Q3 to Q2, affecting both revenue and adjusted EBITDA. For the third quarter, we expect revenue in the range of $840 million to $860 million, representing approximately 31% to 34% growth year over year. We expect Q3 adjusted EBITDA in the range of $51 million to $53 million, growing 25% to 29% year over year. In closing, this is our fourth quarter reporting earnings as a public company. In that time, we delivered four consecutive quarters of 40%-plus revenue growth with 50%-plus adjusted EBITDA growth. Over that same last 12-month time period, our free cash flow has grown 92%. We are delivering significant revenue growth outpaced by adjusted EBITDA and free cash flow growth in a market with significant runway remaining. We believe this is a formula for long-term value creation and puts us in a unique group of companies that grow sustainably at scale. At the end of the day, what matters most is that we are delivering growth for our brand partners. NRR at 129% reflects that. With that, I will turn it back to David before we open up the call for questions.
Thanks, Jason. Q2 was our fourth consecutive quarter of 40%-plus revenue growth. Also in Q2, NRR hit a record of 129%. International revenue was above $100 million for the first time. PI is running at scale, and our brands can now reach consumers on ChatGPT. We enter Q3 with a platform and pipeline we feel great about. The surface area of ecommerce keeps expanding, and Pattern will continue to complement brands in their execution and management of these vast surface areas. Pattern is built for both the intelligence to win in that environment and the infrastructure to fulfill what it generates. We remain focused on optimizing the ecommerce equation on behalf of brands — removing friction for brands, and delivering measurable outcomes at scale. Thank you for your continued support. We will now open the call for questions.
分析師問答
Thank you. At this time, we will conduct the question-and-answer session. As a reminder, to ask a question, you will need to press *1 on your telephone and wait for your name to be announced. To withdraw your question, please press *1 again. Please stand by. Our first question comes from Brian Pitz from BMO Financial Group. Please go ahead.
Thanks for the question. Maybe with P&G's announced acquisition of Thorne, you can discuss whether a change of control creates any considerations for your relationship with Thorne. And maybe more broadly, how you think about customer retention when brands are acquired by larger strategic owners with more established distribution capabilities? And then I have a follow-up.
Thanks, Brian. Appreciate your question. First off, I want to start with congrats to the Thorne team and the P&G team. Regarding the sale that was announced yesterday, we found out about that at the same time as the public and have no comments on the specifics of that transaction. However, it is important to note that we already work with other brands in the P&G portfolio, and of course, we look forward to working with them in the future. We discussed this yesterday with Thorne management. We both reiterated the importance of our partnership and our confidence in the future. What it means now is business as usual with Thorne. To your specific question, Brian, there is no change-of-control provision in our agreement, and we believe we have runway to demonstrate our value to the partnership going forward. I will turn it over to David for maybe the second part of your first question and a broader context.
Yeah, great outcome. If you step back a little, we often do what we call a joint business plan with brands at the beginning of significant time periods. We have discussions with the brands to ask what their objectives are and what they are hoping for. I think all brands would agree that Thorne has been a successful outcome, and I believe we played a small part in that. The team has done a tremendous job. Over the years, we have worked with lots of brands that have had this type of success and have been acquired by larger CPG companies. Some of our best and longest partnerships are inside those CPG conglomerates — some started there and some landed there via acquisition. Successful brand outcomes often lead to acquisition. One of the things we are excited about is that when this happens, generally you have significant knowledge, resources, and investment that go into the asset and the teams. We expect that will come from this partnership as well. So we see it as business as usual and are excited about the future. You mentioned the second question, Brian?
Yeah. Just a real quick one. As you look across your customer base, how are brands balancing either marketplace participation or DTC investment, and what does that imply for the long-term risk of client attrition or channel shift? Any insights there? Because there are obviously a lot of options for some of the brands out there.
Yeah, there are of course conversations where people ask, 'Will one channel cannibalize the other?' If a brand is successful on a direct-to-consumer site, will it cannibalize marketplace revenue? We have not seen that materially. We generally encourage collaboration across channels. We believe that when brands are successful in any channel, it tends to raise marketplace awareness and tends to benefit the overall business. Our goal is to do what is best for a brand in terms of their outcomes, and anything that we can do to support that is where we go. Usually that is also best for Pattern as well.
Thank you. Our next question comes from Eric Sheridan from Goldman Sachs. Please go ahead.
Thanks so much for taking the question. I know this is a topic we have talked about before, but maybe just to pull on the thread a little bit given the results you keep putting up. The net revenue retention numbers just keep kind of moving up. Two-parter: one, what is the signal you are getting about any ceiling that might exist in the business in terms of NRR among the existing and older cohorts that we should be thinking about? Conversely, as the business becomes more diversified over time away from Amazon into more international markets, how do we think about a countervailing factor of faster growth in newer cohorts or newer verticals as diluting NRR but also contributing wider to revenue growth for the platform? Thanks so much.
Yeah. The NRR numbers are sort of astounding when you look back. Total digital growth may be 7% to 9%, and we're running at 129%, which is a significant outperformance. Our ability to execute on a technology roadmap has accelerated, effectively doubling our expectation from 12 months ago. That is essentially a software factory effect — our ability to leverage AI in that process. We can hit more marketplaces. If you think of the problem we are solving for a brand — optimizing revenue via traffic, conversion, availability, and price across hundreds of countries and marketplaces — the further we get down a complex technology roadmap, the better for brands and better for Pattern. We believe you will continue to see acceleration driven by AI tailwinds, and we are positioned to naturally benefit. From day one, we had patents submitted around what would be considered AI, even before it became broadly popular, and as those technologies have progressed, we have naturally progressed with them. We are seeing that in the results.
Maybe I'll add a little on the cohort question. One of the most powerful things about Pattern is that even brands who have been with us for many years can still outgrow their markets significantly. That's a testament to technology optimizations and the fact there are still many levers to help brands grow by expanding into marketplaces and geographies. Regarding newer cohorts diluting NRR, it's always a possibility, but we are not seeing anything meaningful there. We feel like we are just getting started in a large opportunity set, and we will keep expanding and bringing on more brands and marketplaces to continue that momentum.
Great. Thank you. Our next question comes from Mark Stephen Mahaney from Evercore. Please go ahead.
Hey, guys. This is Austin Riddick on for Mark. Thanks for taking the question. I just wanted to ask one in terms of Amazon concentration. I think non-Amazon revenue of $82 million still implies that a large percentage of total revenue runs through Amazon. So I just wanted to get your thoughts on where you see that non-Amazon share going in one to two years? Any color there would be helpful. Thanks.
Okay, Austin. I will start. It was a little hard to hear you, so I'll do my best to fill in the gaps. It sounded like you are asking about non-Amazon revenue concentration and where we see it going. We love operating on Amazon — it's a great platform, very innovative, great for consumers and sellers. But there is a GMV split around the world with Amazon representing a lower percentage of GMV than what we currently have. As we grow and go where the consumer is, it is natural to diversify away from Amazon. The stats we shared in the prepared remarks show strong non-Amazon and international growth — huge double-digit, sometimes triple-digit growth on good bases. A year ago, non-Amazon revenue was 7% of our business; now it's 9% in just one year. Excluding Amazon, growth rates have been higher. We are not providing a specific projection for where that will go, but we like the trend primarily because it's where customers are trending. We want to help brands find customers wherever they are.
Maybe two points of color: the biggest single line item of the non-Amazon growth, if you break it down by individual marketplace, is our SaaS, logistics, and other bucket — that's growing rapidly and gives us a lot of optionality. Also, Walmart has made tremendous progress; our business on Walmart is up 3.4x what it was two years ago. That's a combination of our execution and Walmart's continued innovation. We are agnostic to channel and focused on helping brands. As channels shift and consumers move, we expect to shift with them, and as we continue to scale and expand geographically, you will see continued diversification.
Thank you. Our next question comes from Ralph Schackart from William Blair. Please go ahead.
Good afternoon. Thanks for taking the question. On the overall growth profile of the business that has been exceeding expectations since you have gone public, maybe if you could walk through where you are seeing the really strong outperformance across the categories you outlined — between technology, geography and marketplaces, and selection — it would help to understand what is driving performance. Second, this business continues to scale rapidly: can you walk us through the infrastructure needs you will need and currently have to support continued strong growth? Thank you.
Thanks, Ralph. Largely, the bulk of our performance comes from the technology stack. There isn't a way to outperform at scale without a machine — especially when you are talking about millions of actions taken a day. Automation is not just about reducing cost; automation can produce better execution, and you see that in the results. On infrastructure, we have a phenomenal team — one of the best in the business — continuously looking forward on what's needed. We launched our Bethlehem, Pennsylvania facility this year and have both hardware and software innovations there that are increasing throughput, what we believe is currently at 2x, which is impressive given where we already are. Those teams continue to ideate and build technology to move throughput forward. I wouldn't describe it as overbuild; it's measured and aligned to growth. We are very bullish on the movement of boxes and on handling a much more complex set of problems in the future — forward logistics is one piece, but reverse logistics is massive. A number I've seen is that 19.3% of all goods globally are returned, which is a complex problem to solve. As we move into agentic surfaces, that problem has to be addressed. Our commerce infrastructure-as-a-service is laying the foundation to do that.
Thank you. Our next question comes from Douglas Anmuth from JPMorgan. Please go ahead.
Hi, this is Maggie on for Douglas. Thanks for taking the question. Any chance you could provide some more color on the investments you are making across commerce infrastructure-as-a-service? And then also those agentic commerce acceleration capabilities?
Sure. On the infrastructure piece, we are investing to solve a natural but complex problem: where is inventory, how many units are close to a consumer, and how fast can we get it there? Once you have inventory in the network, consumers may redirect shipments, request exchanges, or return items. There is an entire process around that, and customer experience matters. We think this infrastructure will be broadly used. Looking further ahead, advances like autonomous driving and robotics will enable better experiences and cost reductions; we are preparing to service customers and brands that are at different levels of capability. On agentic commerce enablement and acceleration, we have advantages from a data perspective. Agentic interactions require semantic intent mapping. For example, if someone wants a blanket that fits under an airplane seat, product descriptions need dimensions and semantics to match that intent. If catalogs lack that information, brands will be skipped on LLM surfaces. Our data model around SEO and product attributes is incredibly useful to map intent. We are well-positioned to help brands accelerate on those surfaces from a data perspective and through execution.
Okay. Thank you. Our next question comes from Bernie McTernan from Needham and Company. Please go ahead.
Great. Thanks for taking the question. Just wanted to ask about margin trends. You mentioned four consecutive quarters of margin expansion with adjusted EBITDA growing faster than revenue. I think the Q3 guide and the implied Q4 guide given the annual guidance implies year-over-year margin contractions. So I wanted to see if there are any specific drivers of those trends. Thank you.
Thanks, Bernie. Good question. The calendar shift of marketplace events caused some noise between Q2 and Q3 on both the revenue and EBITDA side. When you control for that, both the growth rate and the margin rate in Q3 align with what we have been saying about tougher comps in the second half. Specifically, in Q4 there is always seasonal pressure on EBITDA margin percentage — it's more expensive to do business in the holiday period, whether that is storage, moving logistics, or promotional funding. That's expected from Q3 to Q4. The only real drag year over year is the increased investment in R&D growing faster than revenue. Overall, take a step back and look at the full year: you still see margin accretion on a full-year basis, with adjusted EBITDA growing faster than revenue. We feel pretty good about the overall picture.
Thank you. Our next question comes from Justin Patterson from KeyBanc. Please go ahead.
David, it looks like the number of data points on your platform has increased about 38% year to date to 91 trillion. Can you talk about how that drives the pace of the A/B tests and feeds into product velocity across the business? It seems like that could be one of the key variables behind the compounding of the business and the NRR. And then for Jason, how's the health and wellness category comparing versus the other verticals you are in? Thank you.
Of course we run A/B tests. One of our strengths in ecommerce is building a framework for measurement. It's hard to know at scale what will work for consumers; you might target ten personas and test messaging to see which drives the most dollars. Our data moat is invaluable and continues to grow. As brand partners have success with us, they expand with us, and other brands see that success and join Pattern, providing us more data. It becomes a virtuous cycle: better outcomes for brands strengthen the data moat, which enables better outcomes. There is exceptional nuance in the data, and we get better and better at running aggregated A/B tests and applying those learnings.
On verticals, our focus is to help every brand maximize the outcome they are trying to get — win whatever category they are in. We consider ourselves still small in total GMV in health and wellness, and we love that space. There is a lot of interest in premium health and wellness. One highlight of diversification is beauty and TikTok: we were named Strategic Partner of the Year for TikTok Shop, and much of our beauty inbound is coming through that channel. When we do well on TikTok for a brand, we can bring them into other marketplaces globally. As a data point, beauty grew 85% in the quarter, pet supplies grew over 100%, and health and wellness is performing well relative to our expectations. New business trends reflect our marketplace diversification thesis, and we are seeing similar green shoots across many categories.
Thank you. Our last question comes from Colin Sebastian from Baird. Please go ahead.
Two questions for me. First, David, on Amazon's call they talked pretty positively about the performance of their first-party AI interface in terms of conversion rates and overall engagement. Curious: given some of your efforts with generative AI or search, is that an area on the marketplace you are able to take advantage of? Second, on Pattern Intelligence, what is the near-term roadmap to drive more engagement with brands? Is this something that we could see showing up as a measurable growth or margin lever in the relatively near term? Thank you.
Our data confirms what Amazon indicated: AI-enhanced interfaces can improve conversion by better understanding consumer intent. In an LLM world, you narrow the surface area consumers need to review to make a decision. Brands focused on product quality and customer experience will be rewarded with higher trust and better outcomes as transparency increases. Infrastructure factors such as delivery timelines and promises will also become more important and harder to recover from if negative. So yes, we see improvements in conversion from generative AI interfaces and believe brands that invest in quality and customer experience will benefit. That aligns with why we are excited about these surfaces. On Pattern Intelligence, we see a roadmap of continuous feature releases and greater transparency for brands. PI is a better interface layer for brands with more visibility and control. Our primary focus is on effectiveness and driving revenue growth, but there will be efficiency gains over time as we automate more. We haven't put specific numeric guidance on PI's standalone impact yet, but automation and agentic features are a natural lever for future efficiencies and margin improvement. A bit of color on development: the unit of developer work — pull requests or completed tasks — has roughly doubled year to date compared to last year, reflecting software factory dynamics that accelerate results.
Thank you. This concludes the question-and-answer session. Thank you for your participation in today's conference. This does conclude the program, and you may now disconnect.