Good afternoon. My name is Mike and I will be your conference operator today. At this time, I would like to welcome everyone to the Facebook Second Quarter 2020 Earnings Conference Call. All lines have been placed on mute to prevent any background noise. After the speakers’ remarks, there will be a question-and-answer session. [Operator Instructions] This call will be recorded. Thanks very much. Ms. Deborah Crawford, Facebook’s Vice President of Investor Relations, you may begin.

Thank you. Good afternoon and welcome to Facebook’s second quarter 2020 earnings conference call. Joining me today to discuss our results are Mark Zuckerberg, CEO; Sheryl Sandberg, COO; and Dave Wehner, CFO. Before we get started, I would like to take this opportunity to remind you that our remarks today will include forward‐looking statements. Actual results may differ materially from those contemplated by these forward‐looking statements. Factors that could cause these results to differ materially are set forth in today’s press release, and in our quarterly report on Form 10‐Q filed with the SEC. Any forward‐looking statements that we make on this call are based on assumptions as of today and we undertake no obligation to update these statements as a result of new information or future events. During this call we may present both GAAP and non‐GAAP financial measures. A reconciliation of GAAP to non‐GAAP measures is included in today’s earnings press release. The press release and an accompanying investor presentation are available on our website at investor.fb.com. And now, I’d like to turn the call over to Mark.

Thanks. And thanks everyone for joining us today. I hope you’re all doing okay and staying healthy. This was a strong quarter for us, especially compared to what we expected at the start. There are now more than 3.1 billion people using our services every month to stay connected, and more than 180 million businesses who use our tools to connect with customers. We also had more than 9 million active advertisers across our services as many shifted their business online. As I said yesterday, the tech industry is an American success story. Products we build have changed the world for the better and improved people’s lives. Our industry is one of the ways that America shares its values with the world, and one of our greatest economic and cultural exports of our country. Facebook is part of this story. We started with an idea to give people the power to share and connect, and we’ve built services that billions of people find useful. I’m proud that we’ve given a platform for people to make their voices heard, and given small businesses access to tools that only the largest players used to have. Since COVID emerged, people have used our services to stay in touch with friends and family who they can’t be with in person, and to keep their businesses running online even when physical stores are closed. In many ways, amidst this very difficult period for people around the world, our services are more important now than ever before. It’s worth reflecting on this for a moment, because there’s such a fundamental difference between how the vast majority of people actually experience our services, and the impression you’d get if you just read much of the commentary about Facebook. Imagine going through this pandemic two decades ago when…

Thanks Mark, and hi, everyone. I want to start by building on what Mark said about hate speech. Facebook stands firmly against hate. Being a platform where everyone can make their voice heard is core to our mission, but that does not mean it’s acceptable for people to spread hate. It’s not. We don’t benefit from it and we never have. Our users don’t want to see it and our advertisers don’t want to be associated with it. For years, we’ve spent billions of dollars on teams and technology to find and remove hateful content and to protect the integrity of our platform generally, and we’ve become a pioneer in using artificial intelligence to remove hateful content at scale. We’ve made real progress and, in many ways, we’ve led our industry in being more transparent and more proactive in enforcement. A recent study from the European Commission shows that these investments are paying off and that Facebook acts faster and removes a greater percentage of the hate speech on our services than other major internet platforms. We’ve made real progress but this work is never finished. Earlier this month, we met with the organizers of the ads boycott and other civil rights leaders to listen to their concerns, and we published our civil rights audit. We were the first social media company to undertake an audit of this kind, an independent two-year review of the civil rights impact of our products and practices. It’s clear we have a lot more to do, and we are working every day to meet this challenge, not because of pressure from advertisers but because it is the right thing to do. We are also working every day to support people and businesses through this difficult period. The pandemic is not just a public health…

Thanks Sheryl and good afternoon everyone. We continue to operate in an uncertain and challenging environment around the world. At the same time, we are seeing accelerated participation in the digital economy, and Facebook is helping alleviate the economic challenges associated with COVID-19. We are pleased to support people and businesses through these very trying times. Turning now to our results. Our Q2 growth and engagement metrics reflected increased engagement due to the impact of the pandemic. However, as expected, we are seeing signs of normalization as shelter-in-place measures have eased around the world. I will provide more detail in the outlook. In June, we estimate that approximately 2.5 billion people used at least one of our services on a daily basis, and that approximately 3.1 billion people used at least one of our services on a monthly basis. Note that these Q2 Family metrics reflect new data from a recent user survey and certain methodology improvements. Further details are included in the earnings slides on our IR website. Facebook itself continued to grow with daily active users reaching 1.79 billion, up 12% compared to last year. DAUs represented approximately 66% of the 2.7 billion monthly active users in June. MAUs grew by 287 million or 12% compared to last year. Turning now to the financials. Q2 total revenue was $18.7 billion, up 11% or 12% on a constant currency basis. Had foreign exchange rates remained constant with Q2 of last year, total revenue would have been $297 million higher. Q2 ad revenue was $18.3 billion, up 10% or 12% on a constant currency basis. As Sheryl mentioned, ad revenue growth in the quarter was stronger in May and June relative to April. In terms of verticals, we saw particular strength from both new and existing online commerce and services…

We open the lines for question-and-answer session. [Operator Instructions]. Your first question comes from the line of Eric Sheridan from UBS.

Thank you so much for taking the question. And thanks for all the color and the commentary. Maybe two if I can. In terms of what you want to accomplish on e-commerce for the platform broadly over the medium to long-term, what are the key investments and sort of launch initiatives we should be looking for from the outside in that are still part of the building blocks to accomplish sort of the announcement around Facebook Shops, all the excitement about bringing more and more merchants and sellers on the platform, globally? Just want to understand sort of the pathway forward in terms of either initiatives or maybe the numbers. And then, maybe one quick one on the advertising side. How much of a headwind is the current brand advertising environment? We continue to hear about direct response advertising trends improving quickly and maybe even in some verticals back to existing pre-COVID levels. How we should think about the recovery and brand advertising, what headwind that might be for the platform as you look out to the second half? Thanks so much.

Yes. I can take the second -- the first part, and then Sheryl can take probably take the second one. In terms of the big milestones for small businesses in commerce, we’re mostly focused on two types of products. The first is Shops, which we started rolling out a lot more broadly this year. And what that basically allows is any small business to put in a catalog and then have a shop across Instagram and Facebook to start, eventually across all of the apps, you’ll be able to bring up a shop and you’ll be able to transact across all of them. And we’re building up Facebook Pay to make it so that maybe you buy something in one place, your credit card is stored, easier to do follow-on transactions than any of the apps. It will be a better consumer experience and sales will convert better. There will also be a natural value for small businesses of being able to connect the advertising that they’re doing across their services with their shops to be able to go from inspiring someone at the top of the funnel all the way down through driving sales. So, that’s going to continue scaling and a lot more to share their on metrics and that soon. The other area that I’m quite excited about is messaging commerce. And what we’re seeing there is it’s particularly important, especially in developing countries. But, we’re seeing a lot of small businesses just conduct a significant portion of their business over messenger, or over WhatsApp. And in the medium term, I think, the way that we’re probably going to build a business around that. We already offer the business API and that will be meaningful. But there are also these clicks and messaging ads, which have been…

I can talk about the trends in brand advertising. I think, what we’ve seen, not just this quarter, but for many years is that advertisers, large and small, are really interested in measurable results. I think, that’s the best thing we offer. And that’s where people come to us. I think sometimes think of brand advertisers as large advertisers. And certainly, large advertisers often do brand campaigns. But both, large and small advertisers we see on our platform are increasingly interested in measurable results. We also believe that we provide a better advertising experience for both the marketer in terms of ROI and the end user in terms of seeing something that they’re more interested in, when the ads are more personalized. And the more they’re driving to a measurable result, the more they tend to be targeted to a specific audience and I think the better they work. And so, we’re definitely seeing a trend towards, what you said in this question is direct response, but it’s not just direct response anymore. It’s any kind of measurable result. And we offer a lot of different actions you might want someone to take. And that is definitely much more important than brand and driving our business, has been for a while and that trend continues.

Your next question comes from the line of Brian Nowak from Morgan Stanley.

Thanks for taking my question. I have two. One for one for Mark, one for Dave. Mark, the first one’s on India. You made a series of investments last couple of years there. Maybe talk to us about sort of your vision for the product offering and the consumer in the SMB pain points, your most focused on solving, any investments you need to really make there to create that into a real business for Facebook? And then, secondly, Dave, it seems like you’re talking about more than 50% of the employee base potentially working the next 5 to 10 years. I understand you’re not going to give us sort of math or quantify, but maybe just talk to us about some of the puts and takes in areas where you could see long-term efficiency in internally for more people working remote as well as potential higher costs from a larger remote workforce? Thanks.

Sure. I can take the India question. It’s very connected to what I was just talking about around messaging commerce. A lot of people use WhatsApp, especially in India, there’s a huge opportunity to enable small businesses and individuals in India to buy and sell things through WhatsApp. We want to enable that. That starts with enabling payments. A big part of the partnership that we have with Jio will be to wire up and get thousands of [indiscernible] small businesses across India on-boarded onto WhatsApp, to do commerce there. And we’re really excited about the opportunity there. And once we prove that out with Jio in India, we’re planning on expanding it to more folks in India and to other countries as well. But, there’s no doubt that India is a huge opportunity. It is the largest country by the size of our community that we’re serving already. And it should be one of the fastest growing business opportunities as well to help businesses grow there, and we’re very excited about that. Before I hand it over to Dave to talk about the remote work, I’ll just add that on principle, the reason why we’re shifting to more remote work is that we think that culturally it will allow us to attract more talented people. We’re not doing this primarily as a cost saving measure. So, Dave can talk a bit about his analysis there. But, I don’t think, we really have a clear picture of how that might play out. But, I can tell you that that’s not the primary goal of how we’re approaching this.

Yes. Mark, that’s consistent with what I was going to say to Brian. The main thing we’re trying to is access a greater talent pool, which ultimately might give us more opportunity to grow headcount. So, I think, there’s an effect there that’s I think in addition to cost in the sense that we would have a greater pool of people that we could recruit from. So, I think that’s one thing to think about. And then, yes, there might be some savings on office and amenities and the like, but that’s potentially offset by more travel to be able to bring people into offices and for off sites and other things to be able to collaborate effectively. So we don’t know exactly where the puts and takes are going to come out on that.

Your next question comes from Justin Post from Bank of America.

Great. Maybe I could ask one shorter term and one longer term. You’ve guided to 10% in July and for the quarter about the same for ad revenues. Could you talk about some of the potential headwinds in the second half a little more detail, especially any Apple idea, if that changes or how that could impact your business? And then, on the longer term, Mark, I believe four or five years ago, you talked about Messaging and you’re aware of the Asia comps. Do you feel like that business is really starting to gel and materialize? You obviously had some positive comments. And can that be something that starts to contribute in two or three years? Thank you.

Okay. I’ll take the first one there, Justin. So, I mean, there’s going to be a few factors that are obviously important in the second half. One of the things that we called out was the macro side of things, which we don’t know precisely how the overall economic climate is going to develop, but we do know that stimulus is probably applying to some extent through to our business. And, the current CARES Act, for instance is expiring at the end of July, and we don’t know what the subsequent economic stimulus will look like. And to the extent that stimulus decreases in the future and recession lingers, that could impact consumer purchasing power for advertisers in areas like e-commerce. So, that -- we’ll have to see how that plays out. In addition, we did specifically call out changes on mobile operating platforms, and that, as you correctly identified, specifically with the Apple latest announcement regarding iOS 14 in mind. So, this is one of the factors that is included in our outlook for Q3, but it really will have more of a pronounced impact in Q4 and beyond, given the rollout begins late in Q3. We’re still trying to understand what these changes will look like and how they’ll impact us and the rest of the industry, but the very least, it’s going to make it harder for app developers and others to grow using ads on Facebook and elsewhere. So advertising clients are asking us how to maintain their performance, and we’re working on it. But, our view is that Facebook and targeted ads are a lifeline for small businesses, especially in a time of COVID. And we are concerned that aggressive platform policies will cut that lifeline at a time when it is so essential for small business growth and recovery.

Your next question comes from Ross Sandler from Barclays.

Okay. I guess, I can talk about the messaging business. It’s -- overall, here, it’s basically the levers that I’ve talked about so far on this call. I think, it’s taken us a little longer than I would have hoped for payments to get released on WhatsApp in a number of countries. That’s certainly a building block. The WhatsApp business app is growing incredibly quickly, though, in terms of number of businesses who are signed up for that. So, that part of the ecosystem I think, is going quite well. API adoption is growing reasonably well as well for businesses. The click-to-messaging ads are valuable for businesses. But, we’re seeing them more use -- that shows up more in kind of the revenue and the ads that we’re seeing on the Facebook and Instagram side than registering as direct-to-commerce that’s happening inside the messaging apps. But, it’s useful nonetheless. And I think we’re pretty open to where the revenue comes to us. But, we’re pretty focused just on making sure that we can help small businesses grow and find customers and connect and helping people interact with all of the individuals, all the friends that they want and then all the businesses that they interact with. Increasingly, I think that there’s -- that’s becoming part of one broader platform. I certainly, think that’s happening in messaging. Continue to be very excited about that.

Your next question comes from Ross Sandler from Barclays.

Great. Just a follow-up on the SMB commentary. So, Dave, you mentioned that that was the primary driver of growth, and we appreciate the top 100 mix down to 16% versus I think, 20%, four years ago. So, it seems like that’s been coming down steadily. I guess, the SMB side, it’s a little counterintuitive with so many business failures going on with COVID. So, could you guys just talk about, is it the penetration of the $60 million SMBs already on Facebook, in terms of the buyer -- ad buyer penetration that’s going on, or what’s driving that resurgence in growth from SMBs in the current environment? Any color there would be helpful.

Yes. I think it’s both. When you think about SMBs, you’re certainly right that a lot of businesses are struggling. But at the same time, businesses have to pivot online. And so, on this call, we updated our overall numbers. We now have over 180 million businesses using our free tools. And we now have over 9 million advertisers. So, what we’re seeing is that increasingly businesses of all sizes, but including small businesses have to sign up customers online, people aren’t walking into stores as much, have to find new ways to deliver products, like curbside pickup, like shipping. So, they are increasingly moving online. And you see a lot of businesses around the world, but even in various developed markets like the United States, before this, not even having a website of any kind. So, we’ve become a place, you can set up a website, set up a digital storefront. It’s free. It’s your fixed minutes. You know how to do it, because you’ve already used Facebook or Instagram as a consumer. So, we’re just seeing more and more businesses migrate online. And we’re seeing more and more businesses become advertisers. This acceleration of e-commerce, seeing it not just with us, but if you look at all the verticals out there, things that can be done online are obviously doing better in this time than things that rely completely on things that are offline. And but it really is just an acceleration of a trend we’ve all seen for a very long time. The coronavirus crisis is making this happen more quickly, but the migration online, the migration to using very personalized ads to find people, who are interested in your products is something that we’ve I think helped drive and are continuing to help drive. And we’re proud of the role we play on this. It’s really important for job growth around the world and for the help of small businesses.

Our next question comes from the line of Doug Anmuth from JP Morgan.

I just wanted to dig a little deeper on some of the e-commerce topics. Sheryl, I know it’s still around, obviously with Facebook Shops, but I was hoping you could help us understand the feedback and traction you’re seeing there. And then, just when you think about monetization over time, do you expect more of that through incremental advertising dollars or through commission fees the sellers use, checkout? And then second, Mark, can you comment on your efforts with WhatsApp Pay in India and Brazil? And I know, you’ve met some resistance there? How does that get resolved in those markets? Thanks.

So, we launched Shops in May, as you know, and Shops is a really immersive full screen storefront. So, it enables businesses to build their brand and drive product discovery. If you think about what we’ve done for a really long time, we exist in many ways at the top of the funnel, and we help drive people down. But, we are a great place on Facebook and Instagram for discovery. And then, increasingly, we’re able to drive people down the funnel all the way through to purchase. The Shops helps you that on the advertiser side, but they also help small businesses with free online tools. We’re very committed to this. But, in terms of how it’s going, it’s very early. We are seeing nice results from businesses and the people who are using these shops. Our focus is getting this product experience right? And as we do, we’re going to make it available for more and more businesses. If you look into the foreseeable future or the several years future, advertising is such a high margin business that obviously it contributes much more to the bottom-line than any other fees we might charge. And I think we see this as really focused on increasing the experience people can have, going all the way through the funnel of purchase on Facebook and the experience businesses can have, and closing that loop and selling online and migrating online. That’s more important than the actual incremental dollars we get from any fees charged by these services.

Your next question comes from the line of Youssef Squali from SunTrust?

Yes. There wasn’t much of an update here. And I was just saying that we’re working with regulators in those countries and are optimistic that we’ll be able to move forward. Although it’s taking longer than we would ideally like.

Okay. We can go to next question, Mike.

Your next question comes from Youssef Squali from SunTrust.

Great. Thank you. Switching topics a little bit. Mark, one area where we’re seeing just incredible growth and engagement is online gaming and streaming in particular. You guys recently got Mixer from Microsoft. It looks like Facebook is now firmly in third place in that market. What is your value proposition to gamers relative to the big competitors basically Twitch and YouTube? How do you monetize it over time? Is it, as Sheryl just talked about on a different topic, mostly advertising? And is it conceivable that gaming may become kind of the third leg of that stool, your third largest revenue source over time after Facebook and Instagram. Thanks.

So, the value proposition is community. And that’s true for all kinds of creators who are posting content and video, like what we’re doing in Watch as well. Our channels are ones where you’re not just distributing content, but you’re building up a community and able to communicate with people in a number of ways, which is something that is just a lot harder to do on A YouTube or Twitch or other products like that, even though those are also great products for streaming. So, we’re seeing that on gaming. A lot of people appreciate that. We’re also able to distribute the video and get it to a lot of people. So, that part is working well, too. I agree with you overall that gaming is going to be increasingly important in the future. The other area, of course, where we have a very large investment in gaming is the area around virtual and augmented reality where that’s a big part of the use there. And we’re seeing exciting work both from independent developers and large AAA developers and increasingly some of the in-house studios that we’ve acquired as well. So, we’re going to continue focusing on gaming. I agree that that’s a big area.

Yes. And I would just add Youssef that gaming continues to be a top five vertical for us in terms of advertising. And we saw strong growth in the second quarter, especially in the beginning of the quarter when prices were lower in the option. We saw a lot of demand from our gaming advertisers. And so, it was a, I think, a good example of where the option is very effective at filling in. So, we continue to be important top of the funnel discovery for game developers around the world.

And your next question comes from the line of Heather Bellini from Goldman Sachs.

Great. Thank you so much for taking the question. Most of them have been answered, but just a couple quick ones. Dave, I was wondering if you could just -- you gave us some great commentary to think about Q3. So, thank you for that. Just wondering if you could share with us kind of pricing trends at the end of the quarter and into July? And also, just given the uncertainty on the second half of the year for all the reasons you mentioned, any comments you want to share with us on kind of how to think about even qualitatively seasonality in Q4?

Hey, Heather. Yes. I mean, I think to get to the second part of your question, I think it’s going to be really hard to look into Q4 with any certainty here, given we just don’t know what the macroeconomic situation is going to look like. It’s hard to predict August and September, much less looking that far into the future. And I think that’s going to be a big thing to think about. I think, clearly, e-commerce will continue to be really important, as we go into Q4, given that big -- macro theme for us and the whole industry has been the strength of e-commerce through the second quarter. So, I would expect that play into the fourth quarter as well to some extent with the holiday season. In terms of pricing trends, we did see pricing improve through the quarter. So, early in the quarter, demand was much weaker. So, we saw pricing depressed throughout the world. And we saw, as I mentioned just before Youssef, we saw backfill with some advertisers coming in and taking advantage of low prices for like games, e-commerce providers as well. And then, as prices improved throughout the quarter, we saw some of those advertisers pull back as others came into the auction and began winning more. But, it continues to be, as noted, from the price volume metrics in the script, it continues to be a depressed environment. And so, we’re obviously, just from a macroeconomic perspective, concerned about that. As we get further into the year as well, I do want to point out, we’ve got targeting -- advertising, targeting and measurement headwinds. That will effects pricing as well. That will be we believe more pronounced in Q4, given some of the, for instance, the Apple IDFA changes, which I think could prove to be a challenging headwind.

Your next question comes from the line of Mark Mahaney from RBC.

I wanted to ask about the -- addressing the boycott issues. And, Mark, I quickly want to ask whether you think there’s a reasonable efficient solution -- I know how you come out, you’ve been pretty clear about your thoughts on trying not to moderate too much content, trying not to be in that role. But, are there -- the solutions that you’ve talked about, and introduced things like labeling, is that not addressing the issues, the concerns of some of the boycott participants? How hard do you think it will be to address their concerns? And then, I could stick on this with political advertising. I know you’ve said in the past, you didn’t think it was that material, but the numbers are relatively sizable. We’re talking about a couple of billion that should be online. And I think, as far as I can tell, Facebook offers just about the best way to do political ad targeting, different districts, et cetera. Why wouldn’t you see a reasonable boost to ad revenue in the back part of the year from political ad campaigns? Thanks a lot.

I can talk about the ads boycott. So, it’s an interesting situation we find ourselves in because I think oftentimes when companies are boycotted, it’s because they don’t agree with such a boycott. And that’s not true at all here. We completely agree that we don’t want hate on our platforms, and we stand firmly against it. We don’t benefit from hate speech. We never have. Users don’t want to see it. Advertisers don’t want to be associated with it. And we’ve been working for a really long time to get better at this to finding it. And as I said in my remarks, I think in many ways, we lead our industry in transparency and execution. We’re going to keep working really hard at this, not for financial reasons or advertiser pressure, because it’s the right thing to do. In terms of how we resolve it. We work across the board we have worked with and continue to talk to civil rights organizations that are boycotting us. We had a meeting with them and Mark few weeks ago. We continue to work really closely with other civil rights organizations, as well as our civil rights auditor on the many improvements we’re trying to make. But, we’re also working with industry groups that I think can be really helpful, GARM and MRC, particularly. GARM is working with us to partner on brand safety standards to help us come to definitions and independent oversight for the industry. And we’re optimistic that we’ll be able to work with them to address advertiser concerns. We’re also working with the Media Rating Council, the MRC and undertaking an independent brand safety audit. And we’ll be able to share the scope of that by the end of Q3.

And Mark just -- it’s Dave, on political ads. And I think, the fact is we just have such a large and diversified advertising business, and political ads are just a small part of the overall advertising landscape, even in election years. So, we’ve factored in the 2020 political advertising standard part of our Q3 commentary. And again, I would just point to the backdrop factors that I outlined in my comments in terms of things out there, including macroeconomic headwinds, normalization of engagement trends as COVID restrictions ease, boycott, and then headwinds on targeting and measurement.

Operator, we have time for one last question.

Your last question comes from the line of Mark Shmulik Bernstein.

Yes. Hi. Thanks for taking the question. So, the first, I know we’ve talked about this little bit. But, with the WhatsApp business growing to 50 million users, and I think the last number there was 5 million. That’s pretty astounding growth. Any color you can share on what drove that growth? And then, secondly, as you know, as we just think about the growth kind of quarter to date in July, and I know you called out that the rest of the world was the one that declined due to structural headwinds. Any incremental color, you can share if some of that’s been resolved or what that looks like? Thank you.

I can take the second part, I guess, first on the rest of world. So, I think what you’ve got going on in terms of rest of world weakness, there’s quite a few factors. First, you’ve just got foreign currency headwinds, particularly in places like Brazil. And so that played a role in the year-over-year decline in rest of world. Secondly, rest of world has a lower exposure, what I’d call sort of online verticals, things like e-commerce and games. And it’s more exposed to, things like, traditional retail and brand. And with COVID, the online verticals performed well; and those dependent ultimately like on in person conversions and interactions, less so. So, I think that impacted rest of world as well. And then, finally, it’s not clear whether stimulus in the developed world also played into it and gave more strength in those markets as opposed to rest of the world. But, that could also be part of the relative strength in more the developed world, rather than the developing world.

And on what’s driving the growth in WhatsApp business. I mean, I really just think it’s a good simple product execution. And there’s a ton of organic demand for people to interact with businesses. And I think for small business owners in particular to have some separation between their personal WhatsApp account and their business accounts, and some of the additional features and tools that you get through WhatsApp business to be able to connect with people and manage that a bit better. So, I think that that will continue growing quite well. And we have a long roadmap ahead to build up all the different commerce features that we talked about on this call, but also have been talking about for a while now. And I think that that’s one of the exciting opportunities ahead of us that we’re going to be focused on building for the next few years, but which we think is pretty fundamental for serving people and enabling small businesses and entrepreneurs around the world. We’re excited to get at it.

Great. Thank you for joining us today. We appreciate your time and we look forward to speaking with you again.

Ladies and gentlemen, this concludes today’s conference call. Thank you for joining us. You may no disconnect your lines.