Good day and thank you for standing by. Welcome to the Q3 2021 CoStar Group 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] I would now like to hand the conference over to your speaker today, Bill Warmington, Vice President and Head of Investor Relations. Thank you. Please go ahead.

Thank you, Sadie. Good evening and thank you all for joining us to discuss the third quarter 2021 results of the CoStar Group. Before I turn the call over to Andy Florance, CoStar’s CEO and Founder; and Scott Wheeler, our CFO, I would like to review our safe harbor statement. Certain portions of the discussion today may contain forward-looking statements, including the Company’s outlook and expectations for the fourth quarter and full year 2021. Forward-looking statements involve many risks, uncertainties, assumptions, estimates and other factors that can cause actual results to differ materially from such statements. Important factors that can cause actual results to differ include, but are not limited to, those stated in CoStar Group’s press release issued earlier today and in our filings with the SEC, including our most recent annual report on Form 10-K and quarterly report on Form 10-Q under the heading Risk Factors. All forward-looking statements are based on information available to CoStar on the date of this call. CoStar assumes no obligation to update these statements, whether as a result of new information, future events or otherwise. Reconciliation to the most directly comparable GAAP measure of the non-GAAP financial measures discussed on this call, including EBITDA, adjusted EBITDA, non-GAAP net income and forward-looking non-GAAP guidance are shown in detail in our press release issued today, along with definitions for those terms. The press release is available on our website located at costargroup.com under Press Room. As a reminder, today’s conference call is being webcast, and the link is also available on our website under Investors. Please refer to today’s press release on how to access the replay of this call. And with that, I would like to turn the call over to our Founder and CEO, Andy Florance.

Thank you, Bill. You did an excellent job. Good evening, everybody. Total revenue for the third quarter of 2021 grew by 17% year-over-year to $499 million. That’s at the upper end of our guidance range at almost $0.5 billion in revenue for the quarter. Most encouraging, year-over-year revenue growth for CoStar reached double digits this quarter for the first time since before the pandemic. And that’s with a 10% revenue growth in the third quarter and 12% of revenue growth in September. Net bookings of $47 million for the third quarter include the strongest sales quarter in the history of CoStar, which are only dampened by a soft sales quarter for Apartments.com. Adjusted EBITDA of $144 million exceeded the high end of our guidance range, coming in $10 million ahead of the third quarter consensus estimates. Our marketplaces contained to deliver exceptional value to our customers as traffic to our sites increased 25% year-over-year. Our marketing campaigns generated over 4.6 billion impressions in the third quarter across Apartments.com, LoopNet and Ten-X. We are welcoming our newest marketplace, BureauxLocaux, the French commercial marketplace we acquired on October 1st, to our fast growing network of property marketplaces. U.S. apartment market is experiencing the highest unit absorption rate in decades, causing the lowest vacancy rates in decades and the highest rent growth in decades. The absorption rate, vacancy rate and the rental growth are well outside 1 to 2 standard deviations to normal ranges in the past 20 years. The rate of change is stunning and the market stats are best described as whipsawing or extremely volatile. The pandemic initially caused a sharp drop in occupancy high move volumes and slight rent declines. With the availability of vaccine, absorption shot through the roof and occupancy levels and rent growth soared. When you see…

I know how much you love the riveting numbers. You’re like when you go to the Charlie Brown Show, you know, it’s the teacher, all you hear is wah, wah, wah, number, number, wah, wah, wah, number, number when you listen to me.

I hear something.

I can tell. Anyway. Thank you, Andy, for your introduction. Great to have another strong financial quarter in the books, and of course, to see all the increasing number of product, content and marketing investments that, as you can hear from what Andy said, are delivering such great value to all of our clients. So, it is clear that over the past few years, we have established both, CoStar and Multifamily as businesses that are operating within these massive addressable markets and each of them have multibillion-dollar revenue potential. Now similarly, our LoopNet Marketplace and now our residential business also both operate in massive addressable markets and each have multibillion-dollar revenue potential. So, this quarter, we revised how we report our disaggregated revenue to increase the visibility to these $1 billion-plus potential business areas: CoStar, Multifamily, LoopNet and Residential, each of whose revenue will now be reported individually. Each of the sectors include both domestic and international revenue where applicable. So, the revenue sector that was formerly known as Commercial Property and Land has left the CoStar Group and it’s now working full-time from home on a lovely beach somewhere. So, we had to say farewell to Commercial Property and Land and thank them for the sector’s solid five years of performance and exceptional service. So, in its place, we now have a new, and I must say a very creatively titled sector that I personally named, called Other Marketplaces. Now, I didn’t spend a dime of our precious marketing spend to come up with that one, but it does include Ten-X, our Lands and our Businesses for Sale marketplace. So hopefully, I’ll remember to provide the relevant comparisons to all of you this quarter for the old grouping, while we transition to the new revenue sector information, will help…

Thank you, Scott. Sadie, would you please give instructions and assemble the roster for the Q&A portion of the call? Analysts, please limit yourselves to one really good question. Thank you.

Thank you. [Operator Instructions] And for our first question, we have Pete Christiansen from Citi.

Good evening. Thanks for the question. And thanks guys for the added transparency disclosures on the revenue side, I really appreciate. I think I have to ask this question. I know we’re in just the end of October here. But Andy, I guess, as you look forward to 2022, just wondering if you had a sense on spending as you think about ramping up the residential effort? Any sense of how that will play in, whether there’s any connection there with some of the revenue weakness that we’re seeing in the apartment side? Do you have the opportunity to pivot more spending dollars from apartments over to residential? Thank you.

Yes. So, at this point, what we’re focused on with residential is growing our selling operation of Homesnap. So, Homesnap, we’re having great success there, as you can see from these numbers, good, strong SaaS revenue, subscription revenue, the concierge product. We’re accelerating that growth rate dramatically. We believe there is additional room to accelerate that growth rate of Homesnap. So, the Homesnap Pro product doesn’t have a sales force right now. That product reminds me an awful lot of what LoopNet looked like over the last 10 to 15 years when it was being sold at a $50 a month subscription level. And I think it would be healthy for us to be growing the community of residential agents that regularly connect and log into Homesnap and turn to us as an important marketing tool for them and information tool for them. So, that’s our primary focus. And that does not involve large-scale consumer marketing initiatives. That’s really about salespeople and software. And secondarily, what we’re focused on doing is dialing in exactly the right formula for Homes.com and the right relationship between the professional community at Homesnap and the consumer, the buyers who are going to be on Homes.com and making sure that we’re designing the right tools there for them. So, until we have finished that software, finished those designs, fully flushed out where these two products are going, which we’re working very hard on right now, we are -- it’s premature to be looking at dramatic spending initiatives beyond adding salespeople to Homes.com and little bit of software initiatives and the like. So, it’s still open. Now, could we dial back some of the spending on Apartments.com when so many apartment communities are full, probably, and we’ve already had those discussions, not huge, it’s not something that is necessary to free up some initiative over on the residential side, so.

For our next question, we have Jackson Ader from JP Morgan.

I’m on for Sterling Auty tonight. The question really is about timing of two things: expectations on maybe the timing for the Multifamily business to begin to rebound; and then, Andy, when you mentioned the potential windfall for Ten-X, with some of the distressed assets may be coming on to the market, any expectation on when that -- when or if that timing might come to fruition? Thank you.

Sure. So, there are two primary factors with Apartments.com, I think I’ve mentioned. One is this unusual volatility. The spike in occupancy levels, that’s unprecedented. I am sort of predicting something that hasn’t happened before. I believe it begins to reconcile in the next two quarters. It could be one to four quarters, but I do not believe that sophisticated operators of apartment communities are going to leave their occupancy levels so high and miss an opportunity to churn rents as well as you just naturally are going to have so much musical chairs and churn going on because of these pricing changes and work-from-home changes. So, I think it will break pretty quickly. Second major factor is the fact that we are delivering significantly more economic value to our customers than we’ve ever delivered before. And I believe there is an opportunity to recognize that. We’ve trialed some of that in September, and we’ll continue to ramp that up into the fourth quarter and first quarter and the second quarter. So, I think you’re probably -- you’re not looking for any dramatic changes in the fourth quarter this year, but I think you’ll move into a strong 2022. And again, I want to stress that the product itself is as strong as it’s ever been. And we’ve actually been a part of probably helping the industry to achieve the highest rents they’ve ever achieved. I wish we had options on rental levels, but we don’t. And I guess, the second question was when would we expect to see Ten-X benefit from distressed levels in office, well, it’s not something we can predict the exact data, something like that. It’s just my sense is, as I walk through all these office buildings, and I don’t see a human being, that there’s a potential problem there. And so, at some point, rational CFOs will begin to rightsize some of these properties. I do believe that work-from-home is not an effective long-term solution. So, I think that will mitigate to some degree in the market. I am seeing all kinds of examples of businesses running into trouble because they’re not operating at the same productivity levels from a work-from-home model. But, I think that -- I think it could be a 2022 thing. I can’t believe there won’t be some distress somewhere, especially sort of second-generation office buildings may have a tougher time, but Ten-X is really good at selling, finding the biggest audience possible to find that buyer for some real oddball stuff and some high-quality stuff. So, I would think 2022, but I’d be surprised if there’s not some sort of something coming there. So, these two facts -- this sort of effective 70% vacancy rate is potentially a tailwind behind LoopNet and Ten-X.

For our next question, we have David Chu from Bank of America.

So, should 4Q then be the trough in Multifamily revenue, given that you get some pricing benefits and then occupancy rates can’t really go higher? Does that make sense?

That likely makes sense. And yes, it’d be really odd if occupancy went -- rates went higher.

Yes, not much room left.

That would be strike. So, I think that’s a fair assessment.

For our next question, we have George Tong from Goldman Sachs.

So, apartment vacancy rates have reached the lowest level in recent history. And you mentioned that that should normalize in a few quarters as yield management systems push rents up. What’s the likelihood that this could be the new norm over the medium term as the economic recovery continues to take hold? And how receptive have customers been to some of your pricing and lead management initiatives to try to compensate and address the prevailing dynamics?

So, I think that -- I do not believe it’s the new norm to have 99% leased communities. I do not believe. It’s sort of like unemployment, like if you get to 1% unemployment, you have a very unhealthy economic situation. If you get to less than X number of days of supply of housing, you get to a very -- you get to a frozen market. So, I believe that it remains in owners’ interest to have enough vacancy that they’re sort of testing -- they had churn in there and that they’re testing the upper limits of their pricing. For these folks, with fixed mortgages, moving these rents up is extremely attractive. Their NOI goes up at a much higher rate than their rental rate does. So, you move 10% up on your rental rate, you might be moving up 40% on your NOI and a cap rate of 3.5%. These folks are motivated to push rents. They may push rents and sell the asset, right? But I don’t think it’s a new normal. So, secondarily, the reception we’ve received to the pricing changes has been very positive. Again, I pulled -- met for couple of hours recently with some of the senior sales leadership on the apartment side and asked, had anybody canceled. And an answer I get back without doing a deep dive audit was, no. And that secondarily, overall people were fine with it. Now remember, these people who are pushing these pricing increases too, it’s not that we are increasing their price. We are reducing the rate at which we reduce their cost per lead at a time in which they’re getting tremendous value from these more and more efficient lower cost leads. I think it’s possible that we’re giving some of these communities, leases for as low as $30 a lease, when they have historically paid potentially $300 per lease, $700 per lease. So, I think it’s a fairly straightforward conversation. We’re delivering value. And I think folks want us to continue to delivering that kind of value. So, it’s something people are responding to. Now, I’d be disappointed if some owner -- property managers somewhere didn’t bring out their procurement officer and try to beat us up. So, I expect that to happen, but no cancellation so far is pretty good.

For our next question, we have Ryan Tomasello from KBW.

It’s clear that apartments will continue to be a bit of a drag on growth, heading into next year, depending on how these unprecedented occupancy levels of all. But I wanted to give you an opportunity, Andy, to walk through some of the bright spot tailwinds for the business in 2022 and where you think there’s room for growth acceleration. For example, at LoopNet, where the sales force is ramping, Residential, where you’re making investments and also CoStar Suite with these new product enhancements in the upsell for -- I guess, without tipping your hand on guidance, how are you thinking about the organic growth power for the business progressing through 2022 and even beyond, if you’re willing to get out that crystal ball?

Sure. So, first of all, bright spots in just the Multifamily and Apartments.com, it’s important to keep looking at those penetration rates overall. So, there’s two factors. What your revenue is per unit with your existing customers and then also your ability to add new customers. So, we still remain at very low penetration rates, we are proving our ability to sell, not only at the 120, 150-unit communities, but we’re proving our ability to sell successfully at the 75-unit community, the 50-unit community, 30-unit community, 10-unit community, 4-unit community. So, it’s all greenfield for Apartments.com. We have -- we can double, triple, quadruple, grow tenfold the number of communities participating with us through time. So, that’s an important growth driver that remains there in 2022 and certainly, we remain very-focused on. And then, the other thing is that these pricing initiatives and rightsizing also I believe could generate -- may well generate some good momentum moving into the middle of 2022 for Apartments.com. LoopNet is, as I said, doing really well, you see in the traffic numbers. I really do believe that digital marketing is the new norm in commercial real estate. And I believe we have an extraordinary opportunity there because of our incredible share of traffic and eyeballs in that industry. I think there are a lot of folks in commercial real estate, who are still operating on 1985 marketing paradigms, largely based on print or digital substance of print. And I think that there’s going to be more and more awareness and awakening there. I am thrilled with what’s happening in Homesnap. Everyone was looking for us to go out and spend $1 trillion on marketing and do sort of exactly what REA Group is doing or what Rightmove is doing. We will develop in pace…

For our next question, we have John Campbell from Stephens Incorporated.

On the RBNY partnership in Citysnap, I mean, obviously, StreetEasy has kind of dominated that NYC market in recent years. We’ve heard a lot of pushback on the kind of daily listing fees. I think, they started with a freemium model, but the pricing has gone from, I think it was $1.50 to like $6 per day, and that’s happened in a handful of years. But Andy, I think you said this is going to be free to list. So, I’m just curious about Citysnap’s kind of approach to pricing, or are we thinking about this more of like a strategic move for you guys, maybe something you can build off in the future?

Sure. So, remember, Citysnap is Homesnap. And there are over 1 million agents. And those agents, when they start using Citysnap, when the MLS buys it for them, it might be free, it may not be -- but when they subscribe to the enhanced functionality of the product, they may begin spending $50 a month with us, similar to what we use to get for LoopNet. Then if they start using us for concierge marketing services, they might spend $500 a month with us, $600 a month with us. And when you start thinking about 1 million agents spending $500, $600 a month, then you start to get to an interesting number, right? Because that’s not a year, that’s a month, $500 a month. So, we’re selling a lot of that right now, and that’s going well. So, we don’t really have to do anything like what StreetEasy is doing, which is so unpopular in order to be financially successful. So, yes, I’m aware that like folks are pretty annoyed at StreetEasy and the fact that the prices are going up so rapidly, it’s all pay to list. And some of the functionality where they’re using other people’s listings to try to get brokers fees for agent fees for other people. So, like we have to pay to not have a different agent’s name on your listing is kind of -- blackmail is too strong a word for it, but it’s zillamail or something, I don’t know. It’s a little offensive to the industry, which is why you’re seeing stuff like such an unprecedented thing that’s never happened before. There’s never been an MLS before in New York City. This is the first time the agents have all gotten together and actually created something together. And we’re honored to have the chance to try to serve that. Initially, the fees are on Homesnap Pro+, which is sort of Citysnap Pro+ and the concierge marketing products and then ultimately over time, it will be marketing revenue very similar to what we do with Apartments.com, LoopNet or REA Group. These are marketing solutions that allow almost all the brokers to participate, not just a small selection of them. It’s something we do that allows them to participate in a way in which they feel that we’re their ally, not their disintermediation enemy. So, there’s a whole bunch of ways we can do this. Now, we don’t minimize the challenge of building an audience in it. But, we obviously have experience in building audiences, and we like taking on these challenges. I’m not sure if I answered your question, but that was that.

Sounded good.

For our next question, we have Andrew Jeffrey from Truist Securities.

Andy, I just want to understand the dynamic in Multifamily pricing. And I appreciate the fact that you’re lowering apartment owners’ and managers’ cost to generate leads, and that’s the key. Can we think about perhaps because of the value proposition, a period at some point in the next 12 or 18 months as vacancies normalize, where we see demand increase on top of the pricing increases you’ve put in place? I mean, I don’t -- in other words, I wouldn’t expect prices to revert, right? And so, you could get some leverage coming out of this, timing uncertain?

Absolutely. So, the value proposition we’ve delivered is really incredible. So, when we bought Apartments.com, like five, six years ago, they were generating, I believe, sub-20 leads per property per month, maybe 10 to 15. We’re now generating 175 leads per month. The pricing hasn’t moved anything like that. And so, rerationalizing that pricing to effectively slow the rate at which we bring the cost per lead down, is separate from what’s going on in these super high occupancy levels. So, we might see revenue growth associated with more rational pricing of lead delivery, recognizing that some communities pull many more leads, some communities need less. But we may see pricing revenue acceleration from that. And then you may see a return to people needing to move up our tier levels to drive more listings as they see vacancies as people move back and forth and play musical chairs in rentals with all this work-from-home stuff and as well as potential changes in the economy and then also changes then get higher rent growth. So, if these folks pull another -- if our clients pull another 10% rent increase, they may see occupancy levels fall still at high levels, but our leads will become worth 10% more than they were before. And again, from an NOI perspective, our leads become worth 30%, 40% more, right? So, I think you’re right, it could be a double whammy. But, Mr. Wheeler here has to play the role of Eeyore and he’s going to see it before he’s ever going to talk about it.

Well, there are some positives like you mentioned the renewal pricing increases in your comments, but we’re selling new ads under our new pricing structures that are being sold for 15% to 20% prices higher than we were selling them for in July. And we’re getting hundreds of properties that are coming in, paying those prices. So, to your point, Andrew, we’ve typically seen 10% volume growth over the years, and we have plenty of room to penetrate with volume growth. If you had a nice volume growth kicker on top of a 15% new price card, that’s interesting. Coming from Eeyore. The new Eeyore.

For our next question, we have Mario Cortellacci from Jefferies.

Just given all the dry powder that you guys are still holding, I’m just wondering how we should think about the potential timing and maybe even sizing of deals over the next 12 months, or maybe even asked a different way, I guess if your current pipeline -- or with what’s in your current pipeline, could you just give us a sense for how many deals do you think you can close that are maybe more tuck-in in nature? And are there any chunkier deals out there that maybe we’re not seeing in the private market?

Sure. I appreciate the question, Mario. But -- and as you know, we’re not going to tell you anything that really identifies anything. I can tell you anecdotally, 15 minutes before this call, I picked up the phone, I called Martin Johnson, our Head of M&A, and updated him on 4 or 5 thoughts we had of relatively small companies, but could be nice tuck-ins, they’re strategic. There’s always a big pipeline of strategic things. There’s some that are a little bit bigger. There’s some I think that will get a -- that I think is pretty straightforward and positive that we’re working on, that has nuances that are challenging, but could be interesting. We just turned down a pretty significant deal because -- after due diligence because we felt it was ultimately not the right value and had too much hair on it. But, I think it’s more of a -- right now, what we’re looking at is more deals that sort of enhance the sort of general initiatives you’re well aware of. We’re not looking at anything right now that really jumps us out of the things you’re familiar with, the general strategic themes that our investors are well aware of. But, there are a lot of things that can help us strengthen what we’re already doing.

For the next question, we have Jeff Meuler from Robert Baird.

For Apartments.com, can you give us some perspective on how the business is performing in any metro areas that are closer to the median for vacancy rates? And I’m talking relative to the historical median or within 1 standard deviation or something to the extent to which they’re out there. And then, historically, how sensitive has the business been to new apartment construction? I recognize that there’s interplay with occupancy rate, but just in terms of the need to advertise to lease up the new builds, and any update on those trends or sensitivities? Thanks.

Sure. So, just keep in mind one thing, as you consider what’s going on here. If you ever think about the unemployment -- the job creation numbers, you might -- people might be expecting 280,000 new jobs this month. People forget that that is 5 million jobs lost and 5.2 million jobs gained. So, the 200,000 is -- and that’s the same thing here. You might have a relatively small movement in people downgrading, which causes a softness in the apartment sales because they’re so occupied, the under construction side of the business is solid and cranking, and we are at a near all-time high of supply. And those communities always -- I mean, most typically look to Apartments.com to fill up their communities when they hit the market fully vacant. So, that business is as good as it’s ever been. And it doesn’t take a Nobel laureate economist to know that with rents climbing 12% and cap rates going down to 3-point whatever percent that there, you’re going to see more supply, especially in apartments as an inflation hedge. So, I think you’re going to see a lot of activity in land. And I think you’re going to see a lot of activity with people bringing apartments to market as quickly as they possibly can. So, I think that business is going great. In terms of anecdotally, one market versus another, these different markets are gyrating -- doing these spikes in occupancy at slightly different pattern. So, at the beginning -- early stage of pandemic, you saw spikes in say like secondary tertiary cities, like a Richmond or San Diego, and you saw vacancies rise in markets like New York, then you see New York shoot up and occupancy levels down in vacancy. So, they’re all moving around with pretty good volatility. So, we don’t have -- we aren’t really identifying clear cut different trends from one market to another. Just generally, the overall theme is demand for apartments right now is an unprecedented high. And the supply is high, too, but demand is super high, and it’s across the country.

For our next question, we have Stephen Sheldon from William Blair.

On the international data opportunity, how important are these commercial marketplaces, Realla and Belbex, and now the recent one in France, to your overall data gathering capabilities in these markets to pull back into the global CoStar data platform? And then, how are you thinking about continuing to expand commercial marketplaces in other countries? And I guess, into regions too, like APAC, could you do that with the existing assets, or will you likely continue to do smaller acquisitions like BureauxLocaux?

Yes, we’re -- we would -- sort of going backwards there, we would -- as we’ve been for many, many years, we would always be open to looking at good, strong players who have -- are part of the data clearinghouse for the market. These are sort of good, great raw material companies to help build a larger platform with. So, deals like BureauxLocaux, we would keep looking for those. And they are out there around the world. So we keep track of them. Now, in terms of how important are these sites, well, they’re very valuable. I mean, we can go into a market without them, like you can see us creating a marketplace in Spain successfully, but we like to accelerate that growth. And marketplaces generate a lot of high-quality data. Users actually electronically submit a lot of that data. It is well within our wheelhouse. When we pick up like a BureauxLocaux in Paris, we can -- I think we have a good skill set in growing their traffic, coming up with more pricing, more value propositions for their advertisers, more pricing opportunities for revenue driving for us. We usually have the ability to improve their imagery, some of their marketing strategies for their clients. But, we can take the data coming off of BureauxLocaux, and we have already identified maybe 8 or 9 other sources of data that we connect in with that data and build a very robust information tool for the professional community for the investing community. And the marketplace is just something special that gives you unique data. And the more people shopping on that marketplace, the more people want to give you data, the more people give you data, the more people want to shop on that marketplace, and that virtuous circle…

For our next question, we have Mayank Tandon from Needham.

Scott, I was going to ask you may be around margins. As you think about the roadmap to 40% by 2023, does the softness on the Multifamily that I get it, it might be temporary? And then, maybe some of the timing issues that Andy talked about on the Ten-X impact. Does that in any way change your investment programs as you try to get to that target model, or does that remain sort of status quo?

Yes. I don’t think we have really any reason to make major changes in the investment model now. I think margins have performed very well, certainly in apartments this year as we focus some investments in other places, but they’ve been running up on top of the strong marketing they’ve had. Like Andy said, we’ll look at the level of spending there and where they’re most effective going forward. I think the margin profiles are strong. The leverage we’re getting is strong on growth across all the platforms. And so, I think as we balance that into the next years, we’ll see continued funds come available that we can reinvest in the most attractive opportunities and still give great margins compared to obviously many others in the market that don’t like to deliver margins. We still think that’s an important part of our value proposition. So, no real change in speed or course there. And I appreciate you hanging with us Mayank to the last question of the night.

I think with that, we’re going to wind up the call. Thank you for all the good questions. So, we appreciate you joining us for our third quarter call today. And as we move towards the end of 2021, I can’t believe that we’re actually doing that, but here we are. We’re working towards two important short-term milestones. One is the goal of reaching $1 billion of annualized revenue run rate in our marketplaces by the end of the year. The second is we look forward to crossing the $2 billion revenue run rate for the Company overall, solidly and cleanly. And so, we think the strength of our franchise is clear and the amazing traffic growth, lead growth and high renewal rates we’re showing right now and the successes we’re showing with so many of our product areas and strong sales growth remain focused on growing the core businesses while working to triple our addressable market opportunity through investments in residential and international expansion. So, we look forward to meeting with you again for our fourth quarter call on February ‘22, hang in there. I know it’s a little bit longer than normal quarterly interval, but we’ll be there. Until then, stay safe. And thank you very much for participating.

And ladies and gentlemen, this concludes today’s conference call. Thank you for participating. You may now disconnect.