Hello and good morning. This is Sameer Rathod, for those joining us virtually, VP of Investor Relations. Thank you so much for joining us today virtually, in person. We really appreciate you taking time out of your day to listen to our story. I'm going to go over a few technical points for the folks on the phone or virtually, and then I'll read the safe harbor statement. For those of you who have dialed in, I highly recommend that you join the webcast instead. We will be demoing various videos, and we will be doing Q&A through the webcast to simplify things. If you have questions, use the system online or email me, and I'll pose the questions in the room during the Q&A session. For those of you in the room, you know, we'll have Q&A after each section. You can ask questions. If you're shy, I know there's plenty of you can email me and I can pose those questions as well. Now for the main event, which is the safe harbor statement. The following discussion will include forward-looking statements. Comments that are not a statement of fact, including projections of future performance, are considered forward-looking and involve risks and uncertainties. The risks and uncertainties that could cause our actual and operating results to differ significantly from our forward-looking statements are detailed in our SEC and Canadian securities filings available at our investor relations website, investor.ritchiebros.com, as well as EDGAR and SEDAR. For an identification of discussed non-GAAP financial measures, the most directly comparable GAAP financial measures, and a reconciliation between the two, see our most recent earnings release, Form 10-K, and they're also available on our website. Let me now hand it to Ann Fandozzi, Chief Executive Officer, Ritchie Bros. All right. You know. I'll take any hat. Thank you, Samir. Pleasure to be with all of you today. I'm gonna start. Jim Kessler, our President and Chief Operating Officer, this is how I tell you that I'm gonna start doing your job too. I probably got promoted. Promoted, demoted, who knows what's happening. We're basically gonna tag-team the front section. We're gonna tag-team the Q&A and the sections between the team. For those of you in the room, welcome. For those of you online, welcome as well. Sorry you couldn't join us together. Today is about an extension of the session we actually held in December of 2020, and we'll keep referencing that. We set forth an incredible strategy, and we are gonna be delving deep into it. Unlike normal, where Sharon and I, our Chief Financial Officer, occupy all of your brain space, we are gonna decidedly take a back seat, and you guys are going to hear from the team, the incredibly talented team that's actually getting all the pieces done. You'll get a chance to ask them questions directly through each section. Today is really about that. A little bit on the agenda, and then I'll do a preview, and then I'm gonna turn it over to Jim. What you can expect today is we're gonna go through how our strategy that we set out in December of 2020 to become the trusted global marketplace for insight services and transaction solutions comes to be. When we rolled that strategy out for you guys originally, we said, "Look, this is a journey that's never gonna end. It is forever." You know? If the first question is, when will you get there? Never, right? Because we're transforming, and then we're gonna transform, we're gonna grow, we're gonna keep tacking things on. Number one. The thing we're not gonna cover today is the financial model, because that hasn't changed. What Sharon and I committed to you guys is that as incredible as Ritchie Bros. has been in the past, and what an incredible history, the one Achilles heel the company has had is the growth. We can be very honest about that. We've been at kind of this low single digit GTV, just as a history lesson, for the better part of a decade. Our commitment, and you're going to hear from the folks today that are actually doing good on that commitment, bringing that to you, is to get to mid-single digits, high single digits, low double digits, on and on and on. That's the first reminder. The second, as it relates to marketplace, is you'll know it's working because the gap to services revenue is going to continue to widen. Where the GTV is gonna get to mid-single digits, high single digits, low double digits, the services that we're gonna be offering aren't gonna be tied to the underlying GTV, and we're gonna hear from some parts of our business today that we're already seeing that happen. That growth rate will be higher than the underlying GTV growth rate. What you're hearing from us, hopefully over and over and over, are, one, if there is a mantra, it's about growth. It's about customer, it's about growth, and it's about how the pieces come together. That's two. How that translates in the Evergreen model is, again, you're gonna see this trajectory of GTV, the trajectory of services revenue. It's an incredible business like marketplaces are, so then the flow through, the efficiency, you know, goes to the bottom line, you know, even more incredibly as it translates to EPS. That's what you can expect to see from us. How we're doing it has not changed from the promise we made in December. We're gonna test and learn, okay? You're gonna hear all of the tests we've had going, and drum roll, not all have gone well, right? You're gonna hear from us, like, "This didn't work. This is what we're taking forward. This is what we're testing next." As a reminder, I'm a geeky engineer by training, love KPIs, love numbers, love testing. Our only goal as a team is like, let's be right more often than we're wrong. Be right on the bigger things, wrong on the smaller things. We're gonna be printing money together. That's where the team is headed. M&A, as we're still on the previous slide. I'm going to turn that over to Jim. Where does M&A fit? Because you're gonna hear about some companies today that we bought and how do they fit. There's only one KPI there, and that is speed. You know, we look at M&A as something that can fast-forward this transition to a marketplace. What do we look for in M&A? You guys will see for yourselves. We look for incredible businesses first and foremost, right? We're not looking for no revenue, bet on the com. That's right for some people; that's not right for us. I'm gonna steal Sharon's words. You know, we're a tech company, but that makes money, you know, throws off cash like you've never seen. Very happy with that model. Don't wanna disrupt it. Two, they have to come with incredible management teams, and that's why it's important for you today to hear from those management teams that are making that happen. Third is that they need to somehow fast-forward our transition to a marketplace. It's a great business and a great team, but there has to be a really critical piece in it that's really gonna enable the broader enterprise to realize the vision sooner. I share all of that with you guys because we set out in December of 2020 together. We're now, you know, 18 months into the journey. It's never gonna end. For you guys today, it's first and foremost meeting the people that are driving that, assessing the pieces and how they're coming together, so you can see for yourselves how we've gotten here, why we've gotten here, and what's in our minds, and then have a chance to hear from you directly and hear from us. With that, I'm gonna turn it over to Jim Kessler, our President and Chief Operating Officer. Thank you, Anne. Really appreciate it. This is the first time I heard double digits was the third, not single, you know, as we go through. Thank you. I got a little relief for a couple quarters of how we get there. My name's Jim Kessler. I'm the president and chief operating officer of Ritchie Brothers. Before I kinda get into what I do, the one thing I'm hoping last night when you got to go to the site, you got to meet a lot of our team members. To Ann's point, you have the leadership team here today, but you really got to meet some of the people who get the work done day in and day out. Hopefully, you saw their passion of when we say people bleed orange, and we all have the orange RB on our shirts today, and that's the team that bleeds orange. That's the team that gets it done every day. Hopefully, you got to spend a lot of time with Kevin, Dolan, Ryan, and the whole team that was there last night, cause they really make this whole thing go for it. For me, for my role, the way I look at it is really a support function to make sure all the teams have all the resources, tools they need to be successful. How do we clear roadblocks to make all that happen? Really, when I think about the role of the leadership team, we're here to support everyone else. How do we make that happen? How do we bring this vision to life day in and day out for our customers and our teammates? That's really the way I look at our role. It's really not directing people, telling people. Everything that you're gonna hear today really comes from the whole core of Ritchie Brothers up into the organization. Samir, if you don't mind going to the next slide. If you're a growth company, the one thing you need is a flywheel, right? If you're not cool if you don't have a flywheel. Of course, we are cool, and we have a flywheel. What I'm gonna talk about for this is really pieces of it that you're gonna hear today. Because the one thing when we say Ritchie Brothers marketplace, I think it's important for everyone to realize these pieces all exist today. Now, can we make them more intuitive, easy for the customer, easier to use? 100% yes. All these pieces that you're gonna hear about happen today. I'll give you an example. For Ritchie Bros. Financial Services, it's a business that we have today. A lead comes into one of our platforms. That lead goes into the financial services team. They then call the customer. It's not intuitive, it's not the easiest experience, but it happens today and allows us to grow that business tremendously today. Now, as we talk about the future of the marketplace and bringing things together, I'm sure you can imagine how that can come more intuitive for the customer. When do you need financial service? When do we present it? How does it happen digitally versus someone picks up a phone, calls you? Each of the pieces have their own component of how they operate today, and we have multiple platforms that do it. What you're really gonna hear today is how does this transform and evolve and become easy, intuitive at the right time the customer needs a service or an insight or a transaction. How do we make that so easy for the customer that it just, there's no other place I wanna do business besides Ritchie Bros. because you're part of everything we do, you're part of the whole life cycle of equipment, and this is the easiest experience that I'm gonna have. Just real quick, you're gonna hear Kari talk about transaction solutions today, from the seller point of view and how we're working with the seller. As you can imagine, when COVID happened, Ritchie Bros. for 60 years, relationships. I know everything about your family, your business. The first visit I went on with one of our customers, it wasn't even about a sale of a transaction. I heard about the business for 45 minutes of what his father created, and he was at the point where, "I'm in my sixties, I wanna retire. Is this the right time to sell? And how do you help me get $800,000 so I can retire?" That's the relationship that the team has. They understand the business, the people, the family, how this business got created. For us, super important of how do we keep that relationship, but we also do realize there's a digital transformation happening, and what you're gonna hear from Kari is about the inside sales model. How do we reach more people? How do we build relationships? We're also working on, do we need more feet in the street to get more market share? What is the transformation and how does this sequence and happen over a period of time? Kari's gonna take you through our local yards. From a physical standpoint, how do we get closer to the customers? Diesel is so high at this point, as you can imagine, you know, going 300, you know, miles to deliver equipment at this point, having those local yards to be closer, what that means to our customer. On-site, online, digital, and also the platform of IronPlanet, you know, you can leave your equipment at your site, right? We have everything from leave it at your site, no transportation cost, to a local yard, to the main yard, and everything across it. Dependent on what's going on in the world, we can take advantage of all of it. Kari will take you through sales coverage, relationships, how we're transforming from interrelationships to digital relationships, and how we do that, which we have the ability to do all of it, and then local yards, sales venues, all that good stuff. The next part of the flywheel that you're gonna hear that I really love is just insights, right? Especially everyone here in this room, the reason why you're here is to get insights. What does this mean for Ritchie Bros.? This is why you're here. For us, we know the company with the data that can actually take that data and provide useful insights to our customers, no matter if it's rental rates, if it's valuations, if it's whatever that insight. How do we turn it into useful, valuable information to our customers that when they think about Ritchie Bros., they realize there is value in what you're providing me? Gary and the Rouse team, Doug and Phil, will take you through insights and Rouse and make sure you have a really good understanding of that. The one thing that I'm just very passionate about, especially coming from cars, Earl, you're in my career, is around services, right? Just not being a disposition engine for people. I love that business, and I want every market share that I can get my hands on, right? I want all of it. I also want to be valuable to the customer and all their needs across the life cycle. The one thing, dependent on if it's a strategic account down to a customer in a long tail that might have five pieces of equipment, they need different services from us at the right time. It needs to be intuitive. It's not gonna be everything. United Rentals needs X, long-term customer needs Y. The ability to provide all those services across our network is gonna be super important as we talk about the marketplace and how to make it intuitive at the right time. When you're thinking about transportation, it's not when you bought it. You already maybe did a priority bid and know when I have this piece of equipment, I know I need to transport it. You need to know, Earl, you're in a chain as you're making decisions. How much is that transportation cost? Should I get it into the financing, right? You can't do all that stuff at the end. How do we make this intuitive, instinctive for the customer as we go through it? You're going to hear today about Ritchie Bros. Financial Services. Blake's gonna come up and talk about that business. You're gonna hear from SmartEquip, our most recent acquisition, and Fern and his team and Alex are gonna come up and talk about parts and service. Coming from cars, and Ann and both of us coming from cars, understanding how big parts and service contracts and what we love about it, we already have great partners in dealerships and OEs of how to make this come together. We don't need to carry parts and create our own service contracts. We already have partners that have this. When you have a used piece of equipment that it might be the third or fourth owner of that piece of equipment, how do we reconnect them back into the dealership network? We're the marketplace that make that happen. Of course, I'm always greedy, so how do we monetize that as we go through with our partners? We're adding value to our partners on both sides. Customer gets what they need to keep their equipment running. The dealership has their life cycle, their network going, and we utilize what they're really good at. That they're gonna be the big pieces of the marketplace that we have in place. Like I said, we have all these pieces. What Baron is gonna bring to life is how do we make this intuitive and easy? Because if you go on our website, you see we have separate platforms. The fact that we have IronPlanet, a weekly feature, we have our Ritchie Bros. Live, and I can keep going, Rouse and this and that, and Ritchie Bros. Financial. There are different platforms that we have to bring together to make more intuitive. What you're gonna hear from Baron is how do we create this platform and infrastructure to bring everything together? The one thing that I hope people can see as we talked about IMS, the most important thing is how do we get data and ingest it into a common format for these platforms? When we talk about IMS, we're really talking about how do I take data, no matter if it's from an enterprise customer or regional account, bring it into Ritchie Bros. Financial platform, have a similar taxonomy. Could you imagine marketing eight different platforms with different ways to call a piece of equipment for Matt and his team and the marketing team? How to make that efficient. When we think about IMS, think about how do we ingest data, and then how do we feed it easily to our platforms and make that so simple for our customer that they have the ability in the marketplace to kind of go based on what liquidity needs do you have? I need money today, so a live event is awesome, but I can wait 90 days, so Marketplace-E in a reserved auction is more I want to do. How do we make this so intuitive for the customer in one platform? The first thing is you have to ingest the data, you have to make it common across all your platforms, and then we have the foundation to get into the marketplace. The one thing that we wanna share with you right now is we're constantly working on this marketplace. You're gonna hear from Baron early stages of how do we transform this, and you're gonna see early wins as we go through this in what they call thin slices. We wanted to bring it to life in a video format of what could this feel like for the customer. We put a little video together that I think Matt and Sameer and his team did a great job. Sameer, if you want to play the video. I was hoping for one clap. Matt, I think Matt did a great job, so I'm gonna pass it back to Ann. We talked about how cool a flywheel is. For me, the next cool thing is TAM, and how big are all the things that we talked about which really get me excited about why we're putting so much effort into the marketplace. Ann's gonna take you through TAM. Thank you, Jim. Yeah, for sure, Matt, congratulations. That video. You know, we get a lot of questions about how does it all come together. We were like, "Well, why don't we make a video of what's in everybody's heads, and that way it'll be very clear." I love the slide, TAM for Kevin Geisner, our Head of Strategy, you know, as we set out on this journey. I'm not gonna spend a lot of time on the slide except to say the opportunity is incredible. For me personally, when I joined Ritchie Bros. in January of 2020, you have to understand, I actually started talking to the board of directors in June of 2019. What the heck takes me so much time to make a decision? The answer is that whenever I look at a business, I evaluate it for months and months for a single KPI, and that KPI is the potential of the business. How big can it get? Yeah, I read about, you know, incredible business, very profitable cash machine. Love all these words, but, you know, single-digit growth. When the lights started coming on about the potential, and this chart really brings that together, it is about an underlying marketplace that is $300 billions of GTV. Just to be clear, when we walked into this business, we were around $5 billion, now we're $6 billion. Nice growth, you know, COVID, but from $6 billion- $300 billion, an incredible runway, and that's what's on the left side of the slide. The little lock is the marketplace because it unlocks the potential for the right side, which actually dwarfs the left side. As big as $600 billion is, the monetization of the services is staggering. Jim loves money. Ditto. That's why we work so well together. When you think about the services and what they can encompass, whether it's the parts and service contracts on behalf of the OEM dealers, whether it's the data monetization, whether it's the financing, each of these actually has the potential on its own to dwarf the $300 billion on the left. The magic that you're gonna hear about, three of them we're gonna hear about today, RBFS, which is a homegrown solution, but when you think about financial services. When you hear about Rouse and the data, the thing to remember is 20 years in the making. You guys often ask me the question, and you can ask the team about, you know, what's the moat? I mean, there's nothing. 20 years it has taken Rouse to get to where they are, right? Now they're part of Ritchie Bros., and all of that means. SmartEquip, the original idea, you're actually gonna meet the founder, Alex, literally a professor with an idea in his head. 20 years to get this business. Fern is the CEO. I mean, when you think about the amount of time, the proprietary nature of these businesses, it's mind-boggling, one, in what they've created, they should be so proud. Again, we buy great businesses with great teams. The pride is theirs, but the impact to Ritchie Bros. and our ecosystem is staggering, and that's what gives us confidence in this TAM. Jim and I have spoken enough. It is time for you to hear from the team, and we are gonna start with Baron Concors, who's our Chief Information Officer and is gonna bring the architecture to life. Baron. Thank you so much, Anne, and good morning, everyone. For those of you I didn't get a chance to meet yesterday, I'm Baron Concors, Chief Information Officer for Ritchie Brothers. I started just slightly over two years ago. I think my first week on the job is when the world shut down and the business went 100% online. You know, I'm really thrilled with how the team responded, and the business just continued to operate on all cylinders. Prior to Ritchie Brothers, I spent almost ten years at Yum! Brands. I was Chief Information Officer for Yum! Brands and held other positions there, like Chief Digital Officer for Pizza Hut. Then prior to that, I held a variety of leadership positions at FedEx in technology, including Director of Innovation and VP of Retail Technology. I love Ritchie Brothers. I love this business. It's just, it's unbelievable. When we talk about modern architecture, you know, it's really critical to the company, and it's really one of the five strategic pillars we've made, you know, our teams just rally around. One of the things I've learned in my career is that technology is just adapting and changing rapidly, more rapidly as time goes by. One of the things that we don't know is, you know, what's gonna happen, but one thing I know for sure is I need to be able to be fast, and I need to be able to be flexible in our technology solutions. You know, I go back to, like, my time at Pizza Hut. One of the things I always recall is, like, Apple Pay came out. There are some companies to this day that still cannot accept Apple Pay. Mm-hmm. Right? Because they don't have the right technology architecture. There were some companies that were able to roll it out in days. That, to me, is what is indicative of speed and flexibility, is we don't know what's coming, but we know that we're gonna be able to adapt. We're gonna be able to implement it quickly. We don't know what tools are gonna come out that are gonna make us better harvest, customer insights, better market to our customers. If we can implement those technologies in days, that's how we're really gonna win. That's what modern architecture is all about. Next slide, Sameer. We know today Ritchie Brothers has made some amazing acquisitions over the years, and those acquisitions fuel our marketplace today, but they're legacy standalone systems, as you heard Jim talk about. We have tremendous opportunity to sort of simplify our customer experience and unlock many business capabilities that we don't have today. You know, Ritchie Bros. is all about bringing this vision of a singular marketplace to life. If I drill down on this picture, what's not apparent is how we're gonna build this marketplace. When we say marketplace, it's conceptual because it's actually made up of dozens and dozens of what I'll just call Legos that are independent business capabilities. Think about checkout. Think about customer account. Think about IMS. We're gonna build these individual Lego blocks, which in technology we call microservices, to be independent, that are gonna talk to each other through APIs. What this is really gonna do is unlock our ability to make changes to those individual LEGOs in days and hours versus weeks and months. We'll have small, nimble teams that are gonna be able to really deliver innovation in a very rapid amount of time. Late last year, when we sort of started talking as a team about how we can move faster to achieve this vision, we decided, you know, it really is about speed and delivering on this vision as fast as humanly possible. We decided to seek an outside partner to help us move faster. It was really important for us to pick someone who brings that expertise in product design and engineering, creating frictionless customer experiences, and then obviously building for scale. We made that decision through a really robust selection process, and we chose one of the preeminent engineering firms in the world, and that's Thoughtworks. They've helped some amazing companies in their digital transformation, like Delta Air Lines and Target. Even more important to us, they have a great deal of experience in marketplaces with companies like Manheim, AutoTrader, and even more experience in our own industry when you think about John Deere and Caterpillar and some of the companies they've helped as well. They came on board early this year. We started working with them. They're doing really amazing stuff. Next slide. When we think about our approach for RB 2.0, it's really about delivering business value through these quick wins. I'm gonna talk a little bit more about this in a little bit. As technology companies have evolved, they've really moved to this. You know, we all heard about agile, but it's even delivering these business value every quarter, every month. It starts with business outcomes. When we talk about things like selling a service, you know, when we talk about that, we say, "What do we want the outcome of that to be?" before we even start the software development. That really galvanizes the teams and helps them focus and make sure what we're building is actually going to achieve that business outcome and not reinventing tech for tech's sake. When I say that, what I mean is, if there's something off the shelf that solves the problem for us, then we should look at that. Right? We're not gonna go out and build customized solutions for everything we do here. We wanna build and focus our customized solutions on the things that are proprietary to us, things that really differentiate for us, and use off-the-shelf wherever we can for the other reasons. Then finally, one of the things that's gonna be magical about this new marketplace, you heard me talk about APIs. It's not just how we talk to our systems internally, but it's also exposing those APIs to partners and third parties, so they can tap into our marketplace, we can tap into them and really unlock some really great possibilities. We start with when we talk about Ritchie Brothers, I mean, clearly two of the big business goals for us are to maximize flow through and enhance customer satisfaction. We have, you know, tremendous opportunities to provide more transparency and visibility to our customers with Ritchie Brothers 2.0. We know when we do that, like, things like enabling self-service for our customers, that's really gonna make the lives of our team members easier as well. Things that they have to take customer phone calls to and for today, they're no longer gonna have to do. Really making sure that everything we do in Ritchie Bros. ladders up to these business goals. Next slide, we turn these business goals into product goals. You know, an example on this page is be the easiest and most trusted way to buy and sell used equipment and related services. Each of these goals have what we call bets we're gonna place, and those bets are what come to life through our software development. You'll hear me talk a little bit about that in the next few slides. Really business outcomes, goals, the bets we're gonna place that are really gonna help grow this business. Next slide. The thin wedge you heard Jim mention about. This is really about focusing on things where it starts with something that's highly desirable by a customer, but also highly usable. When we start development of Ritchie Brothers 2.0, it's really about picking these things that start on the very front end of a customer that they can actually purchase or use, going all the way through our infrastructure to our back-end systems and solving for all these things as we go. We're not picking a siloed little piece. We're really going to the meat of some of the opportunities we have in solving for them end to end. That turns into each thin wedge we build starts to become an approach we call bootstrapping. You may have heard of it about this approach before. You know, each thin wedge ladders on top of the other. We talk about, you know, examples here, like how we would build a standalone or purchase a standalone service. If you were at the tour last night, you heard Kevin Copas say we're soon gonna have the ability for a buyer to buy an inspection on our assets. That's an example of one of the first things that'll come to life with Ritchie Brothers 2.0. When we do that, we'll have more foundational things we'll build, like buying an asset, selling an asset, uploading assets. All this will come to life and build on top of each other to where ultimately have that vision of a singular marketplace on Ritchie Brothers 2.0. This next slide, you know, I think this came straight from the kickoff meeting with all of our teams internally, and we really wanted to make sure everyone kind of has the same sort of guiding principles as we build Ritchie Brothers 2.0. I'm a big believer that whoever is the easiest is gonna win. When we think about our customer experience, buyers, sellers, third parties, it's about how do we make it so silly simple for them to do what they wanna do on our digital properties, that they just wanna come back again and again. You know, enable scalable growth. Clearly, as we grow this business, we wanna make sure that we do that without a negative impact on the quality of our service and without an increase to ongoing costs. Finally, how do we drive efficiencies? We know when we come up with a new way of doing business on Ritchie Brothers 2.0 and really unlock many capabilities, we'll need to make some decisions to stop doing some of the business processes we've done in the past. Just to wrap it up, you know, we can look at the future expectations. The platform matures as we kind of sort of build these foundational components in the near future. The effort needed to enable the new features is gonna be drastically reduced. You heard me talk about it earlier, how are we gonna be delivering and experimenting, and talk about we have a test-and-learn culture. Great technology companies are testing 30 and 40 different things at the same time. They're measuring them, and that's what we're gonna unlock with Ritchie Brothers 2.0. Constantly trying things, measuring them, getting the KPIs, and making decisions. Is that something we want to lean in on, or so do we want to pivot to something else? Winning on easy. We know that our customers, we have tremendous opportunity to make their lives easier. We're going to do that. Finally, you heard Ann talk about how this will result in seeing some of the service revenue growth start to outpace the GTV growth rate. That's Ritchie Brothers 2.0. It's an exciting time to be here. It's exciting time if you're a technologist because this is just going to be an amazing journey for the company. With that, I'm going to open it up to Q&A. I'm speechless. It was so clear. Yeah. For those of you who wanna ask a question, just, you know, you can use the mic that we've set up. Or there's mics right there, Michael, if you wanna. Oh, I just go up? Yeah. Never really had to go up in front of everyone. This is new. I'm not a Ritchie Brothers employee. My name is Michael Feniger. I'm at Bank of America Merrill Lynch. I guess just broadly to everyone who just presented, I'm just curious, when you look at that TAM and what you guys are going after, you mentioned the long tail. Is the long tail getting those- Dealers with five pieces of equipment aren't as sophisticated. Is that really the opportunity we see the TAM? Or is it with those large rental houses and those large dealers which based on, you know, conversations, they seem like they're trying to do their own thing. They don't wanna pay the commission rate. When we kinda look at that TAM and a lot of these initiatives' you guys are bringing together, is it really to try to go after and attack that longer tail, or is it to try to get with the big elephant, let's say? Thank you. That was a great question. The short answer is yes and yes, but I think the magic is actually Jim's comments about what the big houses need is not what the long tail needs. Our goal through the technology is to make it very easy for the different constituents to get what they need. For example, I'll just do three flavors, right? United Rentals, huge rental house. Obviously a SmartEquip customer, a Rouse customer, those are the pieces within the Ritchie Brothers ecosystem that, to Jim's point, they exist today. They're users of. They don't need many of our other services. Good luck and God bless. We're just happy to make those better and deliver more and more in the future. When you think about dealers, think about our space. If it's a new piece of equipment, they don't need our help. Maybe even with a second owner, they don't really need our help. By the time it's the third and fourth owner, they've really lost the connectivity. Please understand what we're saying. Our goal is not to usurp that owner, Jim's words. Our goal is to facilitate transitioning that owner because they're buying on a Ritchie Brothers platform, something that the dealers provide, and then we push that owner right to the dealer. It's a value added. It's one of these that's gonna be in the eye of the beholder. If it's valuable and incremental to the dealers and OEMs, they'll embrace it. If not, no fuss, no muss. For the long tail, exactly as the comments that were made, they just don't have access to these things, right? Like To Jim's point, if they're gonna buy a single piece of equipment, they don't have transportation at the ready. They don't have financing at the ready. These are the things we offer today, but imagine making them, Baron's words, more intuitive, easier, earlier in the process. A lot more of them, as you're going to hear from Kari. The answer is all of the above when you think about our ecosystem, but we want to be Switzerland. We're gonna be offering it. The TAM is ginormous. They're gonna be the LEGO blocks, and the customers are gonna kind of vote with their dollars. Whatever is valuable to them, they'll partake in, and if it's not, no problem at all. Hi, Cherilyn Radbourne with TD Cowen. The vision is very exciting. I think what I'm struggling with a little bit sitting here is just how much of it exists today, how long is it going to take to get all of the way there, and what are some of the increments that we can watch for to sort of judge progress along the way? Yep. A lot of the work right now is what I just call foundational, right? Like, it's getting the new technologies up, the infrastructure in the cloud, and all those kinds of things. Really, we know as part of a marketplace, there's common things we have to build, like an account, customer account, you know, a checkout, item pages and things like that. That's underway. What you saw me talk about with the thin wedge and the bootstrapping approach is, you know, really where technology companies have evolved is what really us as a leadership team deciding, like, month to month what we're gonna go after, right? There's criteria that go into that, whether it's like, is it a growth opportunity? Is it an efficiency? We're gonna make that decision. You heard me say we're going after first the ability to buy a service, something we don't offer today, and that's gonna go live real soon. What we're gonna work on next, you know, the input of our strategy team, our marketing team, ops team, sales teams, we're gonna have a laundry list of things that we have a choice to go after, and every month we're gonna be making that decision. I don't want anyone to think I'm not answering the question because I got this question a lot yesterday, when will it be done? You know, and you heard Ann talk a lot about it earlier. It's like, you know, when is any technology done? The answer is never, right? It's just, it goes on and on. You decide. We're gonna have that ability to pivot and choose to work on what we wanna work on and deliver quickly. Jim, yeah. No, no. It's a great question, Baron. I appreciate the way you answered, but I think the way I would answer it is we're not gonna allow the technology, how quick or how slow we go, to deter us from being able to see double-digit growth consistently quarter-over-quarter. What you're gonna hear from Kari are things we're doing without technology when she comes up next. How do we build these sales relationships? What are we doing with the local yards? All that are things in our control that we can take market share without the technology. When I think about what Baron talks about are the accelerators to go even beyond that. I think for us is when you see us quarter-over-quarter growing. I like Ann's single digits to double digits, but in my mind, double digits consistently no matter what environment we're in is going to show you we got all the pieces covered and ready to go. I see the technology as accelerators, intuitive and easy that retain our customers for the rest, hopefully, of their life. We're not gonna allow the speed of that to deter us from because we do have all the pieces of the marketplace in place now. That's the way we look at it. Now, it's manual, it's not intuitive, but we do have a manual way with our relationships to get the numbers that we need to over the next period of time until the technology comes up. I don't know if this one works. Yeah, good. I was curious. On the slide of all the kind of technology acquisitions or platform acquisitions you made over the years, I guess, is it fair to assume that, like, they're all different technologies, and some will be upgraded, modernized, and some will be, I don't wanna say, like, just left because they're not value add? Like, how do you- Yeah, I think. Okay. Can you hear me? I think that as with all things, when you make a lot of acquisitions, you have a little bit of everything. Mm-hmm. Right? That's kinda where we are. What I think we're evaluating, I think to me it's more about getting to a singular experience for our customers. One place they're gonna go and be able to do whatever they wanna do. To answer your question, it's all over the board. There's some things we're gonna replace, some things we're gonna enhance, and some things we'll upgrade. Okay. Yeah, cause I saw, like, something called TruckPlanet on there. I didn't even know that existed. Is that something where if I take that example, there's people who are using it today, but you want to maybe try and get them using something else or? Yeah. Yeah, I don't know. It just seems never heard of it, but it doesn't seem like something that you might be like, "Oh, this has gotta be in the marketplace." Or maybe I'm wrong, and this is an amazing acquisition. Yeah. Matt, our Chief Marketing Officer, wants to jump in. Yeah. Hi, Matt. I'm the Chief Marketing Officer. When you think about the marketplace today, you know, one of the things you talk about these acquisitions we've made over the years. You know, just to answer your question on TruckPlanet. TruckPlanet is a website that sits on the IronPlanet stack and was developed in days of yore to access or approach a specific truck buying audience. As we think about the marketplace going forward, right, what we wanna do is we wanna consolidate all that into a single user experience. Instead of having a separate website for truck buyers, trucks become a category on a bigger marketplace. There's two elements to that transition. One is more of a brand and user experience transition, and one is more the backend technology. Both of those will be coming together in parallel as we start to roll out those new architectures. Because from a marketing standpoint, as Jim said before, we don't wanna be sending users, you know, 15 different websites. We wanna, you know, basically consolidate that traffic into a single marketplace experience where there's commonalities and, you know, opportunities to upsell and cross-sell various services. Yeah. Nick, one thing for you to think about is we might have. Like, we sell government surplus, so will we have a, what we call GovPlanet, and that brand stays because it's not, to Matt's point, these are other auction things that make sense to kind of put together. With GovPlanet because it's, you know, something that's different than construction equipment and transportation equipment. The technology behind it, that invoice that gets created for GovPlanet or for an auction is the same technology. It's not a. Like, today, RB has a different invoice. IronPlanet has a different invoice. Like, different systems create, and it. Like, that technology bears on those foundational pieces of how we invoice, how we settle, they're gonna be common things. Now, Matt will make decisions about how do we brand different things that we do as we get into different verticals. The common things of how to invoice, how to settle, how to create a receipt, how to collect payment, they're all gonna be shared in the infrastructure. First, we bought all these things, and they have their own separate things, right, in the acquisition. One more question. Just a follow-up on that, and maybe this is known, but when you talk about the different marketplaces, private listing, IronPlanet, Marketplace-E, you know, growing classifieds, help us understand, like, where are you seeing the biggest shifts since over the last 12 months? Like, what area is gaining share? Years ago, people were concerned that maybe some of your channels would cannibalize others. It doesn't seem like that's playing out with some of your growth that you guys have been reporting. But what channels are gaining the most share, and how agnostic are you to that? Like, do you make more money, do you get more fees, commission rates if it's starting to go, you know, through IronPlanet or to the private listings? Any clarity there would be helpful. Thanks. Yeah, perfect. I'll take that. So, the answer is we wanna be Switzerland, right? We wanna be Switzerland. The analogy I'll use for you guys is Amazon, and depending on who you are, it's a dirty word, and I only use it as an example. Our goal is not this. You know, you're online, and you order a tube of toothpaste. It's a digital experience, but boy, an actual physical tube of toothpaste better show up at your house. Amazon makes the most money if that comes out of their warehouse, but if it doesn't, they're selling on behalf of third parties, they make less money, but boy, they still make money. That's really the vision here. Look, the idea of channels cannibalizing, that's an idea from decades ago. If you don't cannibalize yourself, this is like part of being a modern company, somebody else will cannibalize you. We never talk about cannibalization. We only talk about customer need. Customers can. If they wanna transact, they can list their own item. They do it today. Why not do it through Ritchie Bros.? That way we have them. We can monitor. I'm looking over at Matt, our Chief Marketing Officer, who's like, "Yay." When we, you know, we had a listing service in Europe, Mascus, one of the circles that was on the page. We just really under-leveraged it for the globe. We have them. We can monitor. Are there services that we can offer buyers on that piece of equipment or sellers? For example, if it's a peer-to-peer transaction, you know, do they need it inspected? What if Baron's lying to me? I don't know who he is. Let me have Ritchie Bros. inspect it. I need financing. All of those things, even if it's a listed item. Imagine if we're not in listings, we don't have access to that. We monitor, and I'm just gonna use this one kind of waterfall example, we call it. We monitor, and we see it's been sitting in listings for 90 days, 100 days, 110 days. We can contact the seller. Today, much of that would have to be done manually. To Jim's point, we can. In the technology world, it's automatic. We say, "Hey, listen, it's been sitting around for about 100 days. Do you actually wanna sell this thing? If so, but you're concerned about, you know, unreserved auctions, like could this thing sell for a dollar, we can transact it for you through Marketplace-E. Here's the results, but it takes a little bit longer. Would you like us to transact it for you and unleash the global buyer base of Ritchie Bros. at your disposal? 30 more days that, you know, when do you need the money? All the way through. When we say Switzerland, please understand we're not being altruistic. We are meeting customers where they are. The difference is we're gonna monetize every step of the way. Some pieces we do today, some more tomorrow, but, you know, at the end, we're gonna make money across. Now we're back to the same slide. I love it. All roads lead back. We're gonna play in the entire $300 billion, which we have not played in before. More importantly or equally offer all of the services on the full $300 billion stack. It's staggering. Yeah. Ann, I think the one thing that we're really set up to take advantage of, and this is why the share, I don't know, by platform doesn't really matter. It's what environment are you in, supply and demand. I need liquidity, or I can wait for liquidity, and that helps us. Okay, where do you need to be and what platform, right? For us, it's where's the equipment? Who has it? How do I get it, right? The platform's gonna be dictated by, you know, in this market right now, when supply is low and demand's high, people, okay, I want the highest price, so I'm willing to wait a little bit more. That might mean MPE takes off, right? Interest rates go up and someone needs liquidity, live auction, and I want it now and I need my cash, right? Like, so the environment's gonna help us, you know, but we have all the platforms to be successful. No matter what environment, my comment, getting back to you, no matter what environment, we should be able to take share. Hi. Right now, as you look at some of these things you wanna monetize, what is your attach rate at this point to the GTV? Is the KPI that we should be looking at is growth of service revenue to GTV? Yeah. Let me be clear. Think about the numbers this way. We're $6 billion in the $300 billion, so we're low single digits. Then on the services side, even lower than that. It's infinitesimal. Historically, the way we've treated services, they were tied to the underlying GTV. They are, like, for example, an inspection service. Well, when you list with IronPlanet, you need to have us inspect it. Is that really a monetized service or is that really a fee that's part of the transaction of an IronPlanet disposition? Even internally, and Jim is really driving us there, as we think about services revenue, it's the stuff that's not tied to the underlying GTV. That way, we can push into the full $300 billion. The answer is yes. You should be looking at GTV growth. You should be looking at services revenue growth and holding us to two KPIs there over time. It should be higher than the underlying GTV, and the pace of that growth should be outpacing. That's how you know we're dipping into much further upstream and much more into the right-hand side. The other thing is just an observation. It seems to me that this is kind of a two-part thing. You've got to build the architecture to automate everything, right? The other thing is you've got to get your customers on the IMS system, right? Firstly is, what are you doing to get these customers on the IMS system? I mean, which is first, the chicken or the egg or whatever, you know? That's actually the perfect setup for our next speaker. How about this? We are gonna introduce Kari Taylor because she and her organization are driving customers to the IMS system. We'll let her go through her presentation, introduce herself, and then answer your question as maybe the first Q&A item for Kari. Deal. First of all, it was so good to have you at our site yesterday. You can imagine, as the leader of the sales organization, how happy that makes me when we bring any customers in for any capacity. Kari Taylor, Chief Revenue Officer. This June marks my third year. Hard to believe. I came to Ritchie Bros. for the transformational opportunity, and why? My whole career has been defined by transformational growth. Those funky assignments, those stretch things, those where do we push for the new frontier, all took place in my time when working for Sun Microsystems, now Oracle, Office Depot, W.W. Grainger, and even the private dental distributor, Benco Dental. This is where I get fired up. Why do I get fired up? The solve, putting points on the board and watching teams do and deliver what they didn't think was possible. I literally will parlay that into my presentation today. Now, before I jump into my content, I'm really honored to ask Ryan Eckert to stand up. Ryan is our Vice President of Texas and Alberta, and he's been absolutely instrumental in bringing to life test and learn for our sales coverage model. Guys, we've had the same sales coverage model for decades. Very comfortable. Why change it? Well, transformational growth. I know Ryan well enough that he's gonna go, "Yeah, don't make it all about me, Kari." It's true, isn't it, Ryan? It's the team. What this team has been through in five quarters of change management, I don't think we can imagine. We've really shaken the trees. They've shown resilience, they've learned new things, they're making progress. Just yesterday, Ryan and I sat down with the two local leaders, and they said, "Kari, the account managers are now surprising themselves." What a good segue into this comment. Thank you, Ryan. It really is this exciting. Okay. I bet a few of you remember this slide. This slide was presented at our investor meeting back in 2020, and we said, "Okay, we're gonna change up and test a new sales coverage model." We left the meeting, and off and running in Texas, we were intentionally picking Texas. Appropriately, we're here today too. Okay, it went like this. We used to have a generalist one-size-fits-all salesperson. We called it a territory manager. They had a geography and were responsible to go after business, maintain business, everything soup to nuts. We put out this premise of, yeah, let's define an account manager who works our existing customers and really grows them. Let's go hunt for new business. We're always looking for new. This long tail, we need to go swing, and we need to swing hard. That's how the story went. Our hypothesis was, through focus, we will drive growth. Really, we were saying by putting constraints in places, people will create ways to grow, and that's been our mantra. We've also said, "Okay, through this focus, we'd create capacity." Let me give you an example. This territory manager had been responsible for 500-600 accounts. Try to keep that straight and drive double-digit growth. The new account manager has between 100-150, and we said, "You can grow. Now you just got to get creative. There's more from the customers you have. Now I'm giving you time to go figure it out." See that premise of focus? We also believed our long-tail customer was underserved. Not underserved because we didn't like them, but the territory manager's time was diluted. Where do they go? We also knew that this was a volume play in the long tail, so we were solving for dedicated volume-based coverage, and we were committed to parlay a digital reach to maximize how we touch those customers. What have we learned in five quarters? I'll tell you, it's been a heck of a ride, hasn't it, Ryan? Some bumps, some glory days, but overall, I am absolutely fired up that this is taking us forward. Our progress is going, and I like the results we're seeing. Now, remember I said focus was the primary thesis. Boy, is that powerful. That constraint of the account manager having 100- 150 accounts means now you need to solve for it, and I'm giving you time to be proactive in your selling activity, and they're seeing fruits of the labor in existing business. Customer response in the long tail. Well, first of all, I believe there are three things all of our sellers look for. Solid price recovery. They want the best return on their assets. No-brainer, clear, but we have to solve for that every day. Number two, as easy as possible to do business with, and they wanna trust who they're doing business with. Fair? Same is true of this long-tail customer. We know how to approach and talk that dialogue. We've hired a bunch of new folks. It's astounding to me to see over five quarters we have an email open rate with the long-tail customers, 39%. In our outbound phone calls, when we're calling a customer with a Ritchie Brothers caller ID, the call pickup rate is 50%. I don't know about you, but I take that all day long. We've also been studying very carefully what market density means to our coverage strategy. The distinction between metro and rural is becoming very real, and we're continuing to fine-tune that. I think, Ryan, you would agree, we've landed metro, and we're just doing a few more iterative tests on how we're looking at rural with the dimension of drive time and how we go faster. We've had the good fortune of these five quarters of having purchased Rouse, and they built for us a sales tool. Now, remember, a number of our new hires are from outside the industry. They have an app that they can look up products and see pricing to help navigate the customer conversations, and it's given them credibility pretty quickly. Four outstanding points of progress we've made thus far. You're gonna ask, great, what's next? Hail has my attention. It really has my attention. We've started cascading and accelerating what we're doing. We took 37 territories in the U.S., all in the proximity of our local yards, and we said, "We're gonna add more long tail to it." Though I'm bullish about these results, I can't really answer, Kari, how do you know this is the absolute right way to cover the long tail? What we've done in the most recent group of hirings, which were just made at the end of Q1, is we've divided the group between long tail phone-based and long tail field-based, still with a volume mindset. Now we've come out of training. Some of these folks are weeks into selling, some of these folks are days into selling, and I'm extremely pleased at the pace of their pipeline and also what it's teaching us about how bringing new folks to Ritchie Bros. is. We're exploring more ways to hunt, and the question we're still fine-tuning is hunting in the rural geographies. Ryan's gonna continue to kick some more tests off in Q3 and Q4. Training has been a really cool outcome. When I came to the business, everybody said, "Oh, Kari, I'm so scared to hire a new rep. Takes three years for them to come up to speed." I have inside territory managers definitely delivering their budget numbers two quarters in. That's a nice pace. What this whole endeavor has taught us is that we really needed to stare down what are we training for and onboarding to. It's to discover the new Ritchie Bros. It's not just sell at a live site. We're selling different things, and we're bringing people in different ways. We overhauled our content, and we put together now a four-week boot camp. We literally go have them ride and put them through pretty intense stack-ranked training. Some don't make it through the end. Then we have them out and running. The question that's as big as the question to you, Baron, about when it's IT, is when do you globalize this, Kari? Next month, my direct reports are coming together, and Ryan's packaging a pitch, and the question's gonna become, where do we go next? How fast and who? We're pretty confident we have a good model. Thumbs up, Ryan? Okay. My last slide connects together what does this mean to local yards? Let's first start with the positioning of local yards. Convenience and ease for our sellers. I want to attract new sellers through local yards. You'll see on this page all of our incremental new yards, and Australia and France were way out front in this, and Australia has been inspiring for what this can be. As we think about local yards and convenience, let's first take a step back. We're talking about five-acre properties. We put two ops' personnel on the ground. Rent is in the neighborhood of $10,000 a month, and we've signed one-year leases with options, so we have flexibility, but we're not tied in. Pretty good setup for test and learn, which we're really carrying forth in this whole effort. Now, I just told you we parlayed the additional long-term tail hires in these geographies. As we're attracting new sellers, my goal is to get these new sellers to ingest all of Ritchie Brothers. What better way than to tie the sales team to it? You may ask, what about results? We're very pleased at focusing on new sellers and what they're gonna deliver. The end game really is a function of accretive margin dollars. There's plenty of real estate to go after to create yards, but as long as we keep pumping up that line, I'm bullish on this strategy. Okay, those were my slides. None of my slides were about IMS yet, but I know I owe a question back on IMS. As in all things within a sales team, you get fired up about execution. You go, and you go, and you go. Initially, we were telling this story to many of our customers about the marketplace. Quickly, we saw in the eyes of our long tail, their eyes kind of glazed over, and it was quite overwhelming. It was like, "What are you asking me?" Thought that was fair feedback. We simply changed our tune of executing on a contract, and we said, "Our next contract we do with you, let's go from a standalone contract to an annual contract, and let's upload your assets to IMS." We weren't selling the big story of IMS yet. We were getting them in the universe to start understanding it, and that's where our momentum started and really pumped up in Q1. It actually started in Q4, but Q1, it fired up cause we made it about the transaction. Ann, anything you'd like to add? No, that was beautifully stated, and Kari's being modest because her brainchild, the test and learn, the whole key is to learn, right? People test lots of things. What's incredible about Kari, and what she's been able to do with the team is then take that learning and then mobilize it a different way. We had one vision of IMS when we started, and it was like, "Okay, this is gonna be too difficult to bring customers along. Let's break it down. Let's make it about an annual contract. Let's not boil the ocean for them." Boom, you saw it in Q4. You saw it a lot in Q1, and it is but the beginning. Okay. Oh, I'm passing this slide to you before we go to Q&A. Correct. So, the only thing on this slide, this is kind of after each section we do, how does it come together? We're back to our KPI of growth. Everything you're hearing here is GTV, right? Local yards, coverage model, long tail, focus. One easy GTV, and that is easy KPI, GTV growth, mid-single-digit, high single-digit, double-digit. In case any of you have a question, though, about what's to stop a salesperson from giving away the store to just drive GTV? The compensation of our salespeople is actually tied to revenue, so they can't just give the stuff away. We're focused on GTV. They're equally focused on revenue because that's how they get paid, which has to do with not giving away the store. With that, questions. Just on that, just to follow up. I mean, if it is about GTV and trying to add more people to the flywheel, Rich has done an incredible job over the years. The take rate keeps going up. You guys add more fees, the rate goes up, which is a compliment to the business and to the moat of business model. Yet is there any thought or analysis done saying, "Actually, if we cut back these 500 basis points, this could unlock a lot more of the tail to join in." I mean, if you speak to dealers, they all love your services, but they all complain about the commission rate first. I'm sure everyone hears that feedback. Is there any thought process of saying, "Hey, why don't we take this back and just, you know, really open up the flywheel, let more people add?" How do you think of that? Yeah. The short answer is this is a topic of discussion that we certainly have. Which is another reason why we wanna bolster the services, because if and when the market bodes the appropriate way, we still love the margin rates and the cash. I'm gonna answer it this way. Much like every other industry, we have taken our fees up to kind of stay at or a little below, a little ahead of the costs that have been coming in. We've been measuring it the other way, which is what has been the effect on take rate as the pricing has increased as the other side of the measure, and the answer is, it hasn't been affected at all. Now, Jim's point in the beginning, it could be a sign of the times, an incredibly tight supply environment and, you know, a demand that allows us to do that. If and when it turns, and please hear me, we've talked before, pricing doesn't just go north. Pricing can go south, right? It's something we evaluate every quarter. It's something we act on a couple of times a year. If and when we sense the market cooling, the demand is not there, imagine that we will take actions, we will measure, we will see what's happening. Thus far, it could be a sign of the times, but it seems fairly inelastic to geek out. Counterintuitive and, but certainly something we're focused on and watching very, very closely. I'm gonna add a comment about the long tail to that point. Those were pretty impressive email open rates and phone calls, and some of the dialogue behind it startled us. We've done business with the long tail before, but I can't say we were heavily penetrated. What we were hearing is we didn't realize you do business with companies our size. We thought you did business with the longer company, the larger customers. I think that's been very eye-opening to say, "Wow, we really have a space to go play in and play in hard." Please. I wanna play devil's advocate a little bit here. All of this is very interesting. At the end of the day, the trailing 12-month growth rate on GTV is 3%, and the trailing 12-month growth rate on organic service revenue growth is 4%. I'm just struggling to understand how we should look at the numbers and sort of see that this is working. Because, you know, we are in a very unprecedented market where used equipment is incredibly tight. The flip side of that is that used equipment pricing is also exceptionally strong, and that helps, especially when your commission rates are percentage based. Is it a case where your strategic accounts have been sort of most affected by the supply chain constraints with the OEMs, and you're sort of backfilling with some of this penetration of the long tail, or how should we think about that? You start, I'll add. Yeah. Let me start. The answer is yes, there's a lot more to the story, which is what gives us confidence. There's actually not just two things we look at, which is volume and price, but there's also mix. Understand that has been an even bigger hurdle than volume. Let me just say it again. It's not just that there's a supply chain issue that's hurting volume. It's not proportionate, meaning that the mix, the expensive stuff, the yellow iron, that has really hurt. When you think about it, price and mix offset, and then you have the volume and the backfill that Kari and her team are doing. We have been really not shy. She and her team have been delivering double digit for many, many quarters. We don't publish that. The strategic accounts, the big ones, they really have had. You know, they cannot part with the equipment because they've had challenges, and then for the little that they sell, they can sell on their own. They don't need us, and again, we wanna be Switzerland. When they need us, we're gonna be here. Understand what those numbers show, number one. Number two, when the volume hits, it's not just a volume whammy. Yes, it hurts on the transaction but understand we can't sell multiple services. Let me use an example. If the volume drops by 50% but the price doubles, on the surface it's like you're agnostic. Not really, because if we have two pieces to sell for half the price, we would sell two inspections. You can't sell two inspections on one piece. The services revenue growth that is tied to that underlying GTV has actually had an incredible. If you take a look at our lot contraction, you actually have to start with GTV big accounts, double down double digits. You say volume down, all of that services revenue associated with that volume down double digits, and then you start stacking up. That's what gives us confidence that we're actually on the kind of double-digit growth rate. It's just hard to see given this incredible backdrop. That's the math of it. I'll add a couple of things. First of all, in this supply constrained environment, we've gotten pretty fierce at focus throughout all the regional sales teams. What's carried a lot of our growth in this time is we have end user customers. When you talk about, they have plenty of work or there's supply constraints, you start challenging yourself what space is open. We have absolutely gone to town after retirements in this time, right? Best price time, we have end users, great time to get out. As Ann spoke to, we've been outpacing growth, yes. On top of that, Texas has outpaced the U.S. regions. In general, we've seen lots down. In Texas in Q1, we saw lots up and performance up and price up, heavily driven by the long tail. Oh, let's go there and then back then. Yes, please. Thanks for the presentation. I have two sets of questions. One, could you just elaborate on this change in strategy in IMS from transactional to annual contract, which seems to have happened recently? Just talk about what that's doing to assets getting into IMS as the key KPI to observe and understand, you know, the potential that IMS will unleash to your service revenue growth. Okay. I'll go backwards a little bit. First of all, our key KPI in IMS right now is number of organizations on. We see the next step later is assets. Previously to this phase of the rollout, every transaction I did with you, I had an individual contract for. Imagine I'm constantly chasing for a signature. I wanna make your life easier, so I'm presenting an annual contract and using that as a hook to say, "Now let's load through transactions, your stuff in IMS." My positioning is simplification and ease. My action is redirection to IMS. The second question is just around local yards and sales team growth, which seems to be also tied together. Curious on how we think of cadence of the growth of your sales team to date, I guess, in Texas and how we see that progress over the coming years. It's clearly a direct focus. What limits you from going from 23 to 150 yards over a course of a year, and how does that tie into your sales team the growth associated with that? Would just love some color on that. Jim is just smiling as you're talking. You're just fueling him to say, "Go, go." True, Jim? Very true. We actually had our local yard call yesterday. Yeah. With the sales team in operation, so great question. It is a great question. I just wanna bring back a point I made about pairing the sales team with the local yards. That hiring started end of Q1. That's just weeks ago. We are in super early innings. I'm bullish about it because what we saw out of Texas with the long tail. What I also know, and Jim, you know this too, is we didn't pick all the right geographies for the local yards. We picked a good number in the U.S. Some are really taking shape, and some need some help. As we watch these sellers, the sales team pair with the local yards, we're gonna see that acceleration and help determine how fast. We can stand up yards and hire sales folks at a pretty good clip. That's why the measurement of growth outpacing historic growth and delivering accretive margin dollars is so important. Anything you'd add? No. I think, Kari, you ended it. For us, the pilot is all about, is this accretive? The last thing we want to do is open up Tallahassee, and that goes up $13 million, Orlando goes down $13 million. Yeah. What we're doing in the pilot and what we're learning is this accretive? To Kari's point, we are finding in the majority, yes. We have found a couple locations that we will shut down. We have a year lease, and we'll stop it and move on to the right location. We want this to be accretive, and when we feel really confident it is, we'll rapidly accelerate the model. Jim, when you're defining accretive, is that on just cannibalizing some other Ritchie market or is it, you know, just- [inaudible] Ritchie Bros. Yeah. Like, we wanna take share from someone else, not from ourselves and just have it go from one platform to another or a site to another site. We really want it to be accretive to us, which ultimately means we're taking share. Remember, yards are about local convenience. They're not per se about selling platforms. All the selling platforms are open. Yeah. The one thing with the yards that's interesting for us now is when you open one, you didn't have one before. The first year, it's new, new, and now you get to a year old and you're a comp in. That customer, are we retaining that customer? Is it incremental? We're just like you think about any kind of retail kind of comp, how do we manage it? As you can imagine, we opened a lot in the third and fourth of last year. Well, we started in the third and fourth of last year, so we do have plans to, you know, we have a comp that starts to come up, right? How do we manage that? I just wanted to pick up again on this kind of price mix volume relationship. You know, as the cycle progresses, at some point, supply chain constraints, you know, are gonna loosen, and the volume is going to start to pick up. The pricing should cool at that point because new equipment is available. The mix is not necessarily going to get better, because what's happening during this period of time is people are aging their rental fleets, people are holding on to equipment because they can't get new. Is the thesis that so long as volume picks up, we now have the opportunity to sell services on two pieces of equipment, not one, and so all of that is net positive? Yes, mix is still gonna be a positive. Understand there's two elements of mix. The age of the equipment is for sure one, but an even bigger one is the categories. Imagine the really expensive yellow iron people cannot get. When they can, even though it's gonna go from our typical seven-year to 10-year, exactly to this point, that's actually the smaller impact of our mix impact. I mean, look, we promised ourselves, our board of directors, our investors, all of you, that no excuses from this team. To Jim's point, I mean, this is an environment unprecedented. Has that deterred us from saying, this is the growth on GTV, this is the services revenue, this is the hand we've been dealt, we're gonna play it the best way we can. When the supply chain turns, the pieces that we're putting in place, to Jim's point, we've tested, we've learned, not all tests go well. We told you guys that on every call. Right. We are so poised to take advantage when it turns. Right now, a huge amount of that effort is overcoming the environment. Imagine when the environment is with us, what that means. I think one thing, and this might seem like a small piece, but coming new into the industry, and you come in in this environment, you start to think, okay, supply and demand, how does this work? Having the playbooks to understand, okay, when you're in a recession, this is what we need to do to drive that number, right? Here goes your playbook across the organization when you're in this type of environment. As we're doing all this, building the playbooks of this is how we have to attack this, and it could be buying inventory less, more, you know, consigned. Like, what is the playbook and how do we attack this? What's this gonna mean to RBFS? Interest rates go up or are people financing? What type of buyers do we get? What we're building behind the scenes is playbooks of how to attack different environments from the seller and buyer side, so we can execute rapidly against it. Coming in, like, coming in year one, like, okay, supply is what it is. Demand's high. What do I do, right? We had to figure all this out as coming new into the industry. Having those playbooks now, we're already prepared for what does a recession mean to Ritchie Bros. and how do I drive results in that environment? Thanks. Along those lines, obviously, supply chain presumably gets better at some point. Over the next cycle, it's also probable that OEMs get much more disciplined with their production. It can react to retail demand and manage inventory at the dealership, especially much better. What does the playbook look like for that environment and how do you outgrow or does that take your growth rates down? Yeah, no. This is where now just the incredible runway is what rears its head. Even if the environment tightens up, we'll say, so what does that mean? Perfect. We're in a $300 billion market of used equipment. Let's say they tighten up in steady state, apples to apples, that shrinks a little. Well, first, there's an underlying expansion, right? That's, you know, kind of significantly higher than population growth, the stimulus package. That's kind of the offsetting. Also, I just remind us, I can't help it, the TAM slide. We're six in a 300. Does that really change if you're six in a 280? The right-hand side, we're even a smaller percentage of today than what the right-hand side is, and it's bigger than the 300. The runway is literally infinite. By the way, 80% of it sits in that long tail. You know, how high is high? No excuses at all. The headwind we're facing now, we're fairly confident. Never say never. This will be the biggest headwind we have to overcome with the mix and the volume and the, you know, and the growth that's coming despite all of it should give a lot of confidence to the folks around the table. With that, okay, so transaction solutions. Oh, there's a break. Yes. Okay. Okay, we're gonna stop torturing you. Hello. Yeah, so we'll take a five-minute break. We'll start back at 10:30. Okay, hope everybody had a good break. Welcome back. My name is Gary McArdle. I'm the president for Rouse Services. Just a little bit of background. I started out my career in the auction liquidation and appraisal business. Spent about 15 years in that business. Ended up running the industrial division for a company called Great American Auctioneers and Liquidators. 20 years ago, I met my now former business partner, Scott Rouse. We set off to build what's really become sort of the leader in information services around the construction and rental sector for equipment. Go ahead and hit a couple of slides. Yeah. Rouse is really three businesses. Rouse Appraisals used equipment sales, and rental analytics. Collectively, those three businesses set Rouse apart as the global leader in construction and rental data-driven information services and performance benchmarking solutions. Click to the next slide. Talk about our coverage. First, geographically, today, Rouse operates in the U.S., Canada, and in the United Kingdom. Across that client base, from a client perspective, we're dealing with everybody from national rental companies to dealers that represent every one of the major OEMs, smaller and medium-sized independent rental companies, and then we get into specialty. Lift trucks, cranes, portable storage and accommodation, et cetera. As we talk about those clients, moving to that next slide, if you would. Yeah. Across that client base, we set up ERP connections, and every night, we ingest data directly from these ERP systems. First, on over $70 billion worth of equipment at a row level, we take in 40 fields of data for every piece of equipment that our customers own, every rental invoice and used equipment sale transaction that they generate. Now, we bring all that data in, as I said, on a nightly basis. We aggregate it, we standardize it, we anonymize it, and then we play it back in the form of insights that help our customers drive better decisions around for their business and better business outcomes. Now, from a Ritchie Brothers standpoint, once we did the acquisition, we treat Ritchie Brothers in a very similar way to the way we did. Just like one of our customers. To give you an example, about six months after we were purchased, we built an app that Kerri was describing earlier that has been deployed to the entire sales force that provides very similar information like what we do for our Rouse sales customers around used equipment pricing. Auction and Marketplace-E pricing. We're going to talk a little bit more about that app in just a minute. If you would, move to the next slide. Before we do that, let me just talk about the data that we collect, right? The breadth and the depth, if you will. As I mentioned, $70 billion worth of fleet data we ingest every night at a row level. The information we get for each piece of equipment is really powerful. Acquisition date, make, model, year, spec. How much did that piece of equipment cost when it was first purchased? What's the current net book value? What's the age? What's the current meter reading? How much rental revenue has it accumulated, both month to date, life to date? How much maintenance is done on that? And what's the current location for that piece of equipment? Now, that $70 billion worth of fleet across our customer base generates $29 billion worth of rental revenue year in and year out. We get a detailed invoice file that provides really powerful information. When did it get sent out on rent? When did it come in on off of rent? What was the customer? What was the job site address? What's the rental rate? Ancillary fees? Going back to that $70 billion worth of equipment, on an annual basis, it generates around $23 billion worth of used equipment sales transactions. On that, we get things like sold price, sold date. Who was the purchase customer? What was the asking price? What were the included attachments? To help with our appraisal business, we also get really highly detailed branch-level rental company P&Ls that help us performance benchmark things like revenue, expenses, EBITDA, net income, all again at a monthly detail by branch. It's a really powerful and rich data set. Let me talk about some of the things that we can do with that. In the case of Ritchie Bros., and I mentioned this app, just a minute ago. About six months after we purchased, we deployed an app that's very similar to the one that we provide to our customers. It's been distributed to the entire sales team. What it does is it allows them to have a good conversation with their customer. They can look up any piece of equipment, and they can have a great conversation with that customer about what's the current auction value and what's on offer if they decide to take that channel. Or it can help guide them to an alternative channel like MPE, which we're gonna talk about a little bit more in a few minutes. Before I do that, a little bit about some of the Rouse businesses. First, Rouse Analytics. Our Rouse Analytics division provides rate, utilization, and growth or market share performance benchmarking solutions to rental companies. The way you can think about the value proposition for this division is at a high level for management strategically. It helps rental company management determine how their pricing compares to their competitors at a market level, how their utilization compares, and how their year-over-year growth compares. At a tactical level, to a salesperson in the field, they can actually look up through an app what the current utilization is for a piece of equipment they're quoting to a customer, both as of last night for the market that they're in and for themselves, and it can help guide a good discussion with their customer about what the rate should be for that piece of equipment. With that, let me just turn it over to Phil Mause, Managing Director for Rouse Analytics, and let him introduce himself and then a quick demo of one of our products. Thanks, Gary. My name is Phil Mause. I'm the Managing Director for Rouse Analytics. I joined Rouse in 2010. Really, what got me excited about the Rouse business was the potential that I saw. I had worked in consulting prior to that and done some work in the hotel space and saw the power that market insights could have to professionalize an industry and change the way that it did business. Saw this really big, capital-intensive construction equipment rental industry that didn't have good market data. We set out to really change the way the industry operates in 2010. There were a lot of challenges along the way, product challenges, normalizing the data, all the other things we had to solve to make it work. We really hit our stride in 2015 and 3x the business from 2015- 2019. We've accomplished what we set out to do, which is to enable better decision-making by the stakeholders that we serve. Now, as part of Ritchie Brothers, we're really excited to leverage their footprint to expand into international markets and also offer additional products and services into that Rouse customer base that we've built great relationships with as a trusted provider of market insights. With that, we'll show a short demo of our mobile app. Thanks, Phil. Second business, Rouse Sales. Very similar to what Phil was describing, right? Performance benchmarking for rates and utilization is what Rouse Analytics does. Performance benchmarking around the used equipment disposition part of a business is what Rouse Sales does. First, we provide updated, on a nightly basis, benchmarks for retail price, wholesale price, and auction price for used equipment at a market level across over 70,000 makes and models. In addition to that, we can integrate marketing support and service tools like white label websites, photo tools, and applications that help drive it. Again, the whole goal for this service is to deliver for our clients better used equipment disposition outcomes and help them maximize their recovery at the final disposition for their used equipment. With that, I'll just turn it over to Doug for a short introduction, and then I think we'll demo the pricing app. Yeah? Yeah. Thanks, Gary. Good morning, everybody. My name is Doug Rusch. Nice to be with you today. Enjoyed getting to meet many of you last night. Obviously, our first on the Rouse side investor event, so really enjoying getting to know many of you. Quick snapshot on my background. I joined Rouse About 10 years ago, I started my career in management consulting, took a brief hiatus to go to business school at the Kellogg School of Management. Coming out of business school, I was really looking for an opportunity to try my hand at an operating role rather than a consulting role. If you think about my consulting career was built on growth companies. You spend some time in business school, you like data. I was looking for a growth business tilted towards data, and that really led me to Rouse. I actually worked with Phil in our prior consulting career, and that's what led me to Rouse. You know, over the past 10 years, the journey that we've been on has been turning what, if we just cycle back the clock a little bit, what at the time was a fairly small business. Rouse Sales just had a handful of large enterprise clients, and our vision was to take the capabilities, the intelligence, the data we were providing to them and sharing it with a broader array of customers, different segments, different sizes, different asset classes, as Gary was talking about. Yes, there were some bumps in that road, but we're really pleased that, number one, those large enterprise clients are still with us. We spend a lot of time thinking about retention because our businesses are subscription businesses, and that's really critical to us. Not only are they still with us, we've taken what was a handful of clients, turned it into 100-some-odd clients. as we look forward and we think about the marketplace, we're very enthusiastic about moving it into the multiple hundreds and into the thousands of clients as part of the Ritchie marketplace. I think what we're gonna do here is there's two videos actually. Again, Gary talked a little bit about the marketplace, the price app, the Ritchie Brothers pricing app, and this is one of the places where we've taken the insights that Rouse develops, packaged it up in a way that it can add value for our sales organization. we'll take a quick tour of that app. Well, we'll play that one. Cool. Thanks, Doug. Perfect segue, because you talked about Marketplace-E. That's really where we're most excited to have had an impact. I say we, Rouse, are most excited to have had an impact with Ritchie Bros. thus far. Yes, if you're a customer looking for speed and efficiency and quick cash with liquidity, the auction is a fantastic transaction solution. It's a very good transaction solution. If you have perhaps a little bit more time, let's say 30-60, even 90 days, and you're open to the possibility of putting a buy now price on, what we've been able to do since Rouse came on board is to help customers calibrate where they price that piece of equipment on MP-E. What we've discovered is that when you calibrate the price appropriately, you're twice as likely to sell in this 30-45-day time frame. Again, I'll just mention that that on offer are recoveries that are 20%-25% higher than what's transacting today at the auction. With the benefit of that 30-45 additional days, if you price within the band that we're providing for you through the app, you have the opportunity to get this 20%-25% premium over auction. From our perspective, there's no greater opportunity for us to get a bigger share of wallet from customers we're already doing business with and to attract customers that we don't have an opportunity to do business with because they're not as interested in the auction transaction. That's really something we're incredibly excited about. Last, I'll just pivot to Rouse Appraisals. Very quickly, Rouse, our appraisals division, is truly the global leader in appraisals to support asset-based loans across the construction and transportation industry. We appraise over $50 billion worth of equipment year in and year out. What we're excited about now as being part of Ritchie Bros. is that in addition to offering appraisal services for those lender clients that might have a borrower who's who either needs to go through a partial or complete disposition, we can now offer them those services. It's a great way for us to combine with Ritchie Bros. and offer more to those lender clients that we're dealing with. With that, I'll turn it over to Ann. Perfect. Gary, thank you. Incredible story of Rouse, and I remind us of our KPIs when we acquire a company. It's an incredible business. I think their growth trajectory and the stickiness of their customer base speaks for itself. It's an incredible team, Gary, Phil, Doug. I mean, imagine our first session with this group, just awe-inspiring. There is the impact to our ecosystem. Just two things, just to kind of hammer home the points that Gary made. When you think about IMS fancy language or insights for our vertical, really think of the model that exists in cars. As Jim said, he and I both share a background of cars. You have a used car, you wanna know what it's worth, you go to Kelley Blue Book. You have a used car, you wanna know how well it's been maintained, you go to CARFAX. Those things do not exist in our industry. Imagine when we learned about Rouse and how the data comes in. When you think about IMS, as Jim talked about, it's about the data coming in. It's about it being properly categorized. It's about being able to glean insights if you're a customer. We moved all of the IMS and all of those data resources under the Rouse team in order to kind of drive that trajectory. That's on the one side. On the other side, they're part of this leadership team, and they understand where we're headed. You know, Kari was talking about her plans to drive double digit, and the number one problem for her organization is onboarding new people. As you guys heard, in the past, it's taken us three years to get a salesperson up and running. Gary and Doug said, "No need for that. How about we give you an app so that if you have a new person that onboards, they don't have to be equipment experts in our space. They're gonna have that expertise in the palm of their hands." They turned it around in months. I would honestly, you know, this is the way to make friends where, you know, I think we could really credit how quickly the newest hires are onboarded because they have access to all of that information. I mean, it's just been an incredible value. I just share those examples with you to say 100% of the businesses we acquire are gonna have all of those three things going for it. Great business, incredible team, and a benefit to the ecosystem that's incredible. We're about to move to service, but any questions to Rouse or that team? Thanks. Yeah. One is just on the appraisal side and kind of the data, obviously, that's helping you all see kind of those amazing insights is obviously Ritchie was doing appraisals. Separately, you know, usually at auction. Is there a way that that works together now or how you see that working together in the future in terms of, I don't know if that gives you incremental data, as you think about that and also just those organizations working together from an appraisal aspect? Great. Good question. Within, I think, the first three months of the acquisition, we integrated the entire appraisal team. That's now actually run by Raffi Aharonian, the managing director for Rouse Appraisals. More importantly to your point, we're trying to have a single instead of, you know, the valuation and appraisal thinking being scattered independently. We're trying to have a common way of going to market with that, right. There's a single valuation methodology that will come out of all this work that we're doing, right? One source of truth for what equipment is worth. Yes, incrementally, a small bit of data. What's true is we actually collected every bit of Ritchie Brothers auction data before we were acquired. That was, you know, sort of around the margins. But I think more importantly, we're trying to approach all the places where we need to think about valuation of equipment. We're trying to approach that at an enterprise level and make sure it's centralized and that there's a single source of truth for where our people, our customers, and the products that we put outthink about what equipment is worth. Right? Just wondering if you can speak a little bit about the beginning and acquiring all the data and maybe if that's something Ritchie can also learn from in terms of IMS and making sure the data is accurate and up-to-date and all that. I'll try to answer this briefly because we could really go down a rabbit hole with this. I think as you can imagine, we talked about the sort of data that Rouse collects today. You don't walk up to somebody and say, "Oh, by the way, will you give me all of that information?" You've got to do those over years building trust, right? The way we built that trust was really two things. First, we proved to be good stewards of the information that we received. More importantly than that, the only reason somebody gives you that information, if you can provide value back to them when they do, right? That's been our core single focus for the 20 years that I've been doing this. How do we make sure that with the customer in mind, we're providing something of value back to them, right? Give us this information, and I'm gonna do something with it that gives you value back. I think the short answer, I don't want to speak for Ann, but I think the short answer is absolutely, right? That's the trick. You want to get people into IMS, make sure that when they give you their fleet information, you're giving them something of value back in exchange for that. That was beautiful, but I also want to make sure that the following is not lost. Ritchie Brothers. does not have a history of monetizing data. That's not how we go to market. That is how Rouse goes to market. We moved all of IMS and Insight under Rouse, right? Their job is to protect it from confidentiality and then extract the value for their customers, of which effectively Ritchie Bros. becomes one. But I want to be clear, this isn't us learning from Rouse. This is Rouse doing for the enterprise what they've already done in their ecosystem. I may have missed this, but do your consignors get the app for free? Do you give it to them? You're talk- The seller. Does the seller get the app? Great question. Let me just move out of the way of the speaker. The short answer is no. If you're just a consigner to Ritchie Brothers, you're not getting the app. There's a salesperson who's having a conversation with you, and they've got the app in front of them. Now, we have shared customers, right? Rouse has customers in their ecosystem that are Ritchie Brothers customers. From a used equipment perspective, a Rouse client, a Rouse sales client, absolutely for every piece of equipment that they have, they know what the current auction value is. They know that before they call up the Ritchie Brothers salesperson and say, "Hey, I'd like to put this in an auction." They know what the current retail pricing is, and they're either using that retail pricing to decide what they want to list on Ritchie List, or they're using that to list on their own private label websites. The opportunity is to be able to provide things like a MP-E suggested price for them and make it easy for them to connect to those services. That's where the opportunity is. Back to your question. There are not consignors today who are not otherwise customers of Rouse that have that app. It's a field sales tool that the Ritchie Brothers sales force has. If the question that raises is, should they? Now we're full circle to the marketplace and the architecture and how do you monetize. Again, think about today, a salesperson has the app and has a conversation with the customer. In the future, how do you monetize? How do you give access? How do you make it easy? How do you unleash the marketplace in order to make that possible? That's just one of the kind of efficiency plays as we move on. I was just curious, you know, you've talked in the past, Ann, about kind of this idea of having kind of a VIN to track equipment through life. Has Rouse effectively been tracking for the 20 years, so to speak, the equipment that, you know, is in your system so you know at least for the equipment that's in your system already, where it's been, how it's been used, et cetera, over this 20-year period, so to speak? That's my favorite topic. Yeah. You had to mention VIN. Here's what's true. Yes. We're already tracking serial numbers. Gives us a great insight. We can say, all right, so I've seen this serial number go from this customer to this customer to this customer, and maybe it passed through a Ritchie Bros. auction on the way. Serial number can be a little bit limiting because it's not always entered correctly. One of the first things we talked about when we got acquired was, I think it was actually Ann's idea. She's like, "Well, why is there not a VIN system in this construction equipment sector?" We absolutely see real value in and there's no reason that we can't take this on ourselves in creating a VIN-like system for the construction and transport or for the construction sector, right? There's no reason we can't do that. We've actually already begun to undertake what that looks like. We've got a model for what the different sequences are. We've had conversations with manufacturers about how that would work. It's really exciting. Here's the point I wanna make. It's something that we should do. It's something that the industry will benefit from. I will say this; it's not limiting our ability to execute on growth. We can do that without this VIN. We're gonna do the VIN, but that's not a sort of a limiter or gating item for us to monetize our insight solutions or the connection of the different customers that own fleet with the transactions and transaction solutions and services that we have. Thanks. Brian Pasch with Raymond James. Has your at-risk model improved as you're able to gather more data, especially with Rouse under the umbrella? No question. Yes. In fact, Jim, I don't know if you wanna take. The question was about our at-risk model. Jim is gonna answer, but that lives and dies by the quality of the data, full stop. We utilize Rouse incredibly, especially in this very dynamic environment. Do you wanna talk about our evolution of at-risk? One thing that we had the chance to. [inaudible] When we had the chance to look at Euro Auctions as we were going through due diligence, the one thing that we noticed that they did a very good job at is having a sourcing team and how do you source inventory. Sourcing valuation, and then where should you sell it? Where is the highest profitable place you should sell it? The one thing that we're very good at is I have an event, I need to get inventory, how do we go get it? And we build events as we go through it. But when you really think about at-risk, buying inventory, how do you source inventory and have a team that can source inventory, value it, and then where should it go, right? That could be international, that could be in North America, it could be anywhere, right? Where is the supply and demand, and where should you send it? One of the big learnings that we had from Euro is putting a team together. We're right in the middle right now of designing what would a sourcing team look like that handles going out, buying inventory, looking at inventory, valuing inventory, which would be part of Gary's team, and then where should it sell as we go through it. We're right in early. You see we buy inventory today, but it's very event-focused and opportunistic when we have a chance to do it. If I could just add two small points to this. To your immediate question, yes, I think within two months of us getting acquired, we were piping Rouse data into the system that the valuation teams were using to assess at-risk packages, right? At a tactical level, that helped. But at a strategic level, here's the more important piece. We talked about this MP-E transaction solution that offers a 20%-25% higher return. We're in a better position now competitively when we bid on these at-risk packages, because we're not just leveraging the auction transaction for that at-risk package. We can think about, right, well, if we can first cascade this package, let's take a number. Let's say we're taking a $10 million package from a strategic customer, and we're bidding. We know we're gonna be bidding competitively on that. Well, we know we can leverage the MP-E solution first, pass that through, take advantage of the higher recoveries that are available. That allows us to be more competitive around those and win a higher percentage of those deals. Yeah. One thing for me coming into Ritchie Brothers, I have a hard time understanding why there is a deal we should lose. Like, we have every platform, we have every capability, we have the sites. Like, why are we losing any deals, right? The one thing that came to me is speed. Why do brokers succeed in this model is their ability to make quick decisions. With our sourcing team, that's where we start to really change, right? We have all the data, we have all the pieces, we know equipment, we know what to pay for it. We have to make quicker decisions to make that happen. When I think about the sourcing team, speed is a big component of how we have to go to market. All right, I think we are. We have heard from. Thank you so much, Gary. Global trusted marketplace for insight services and transaction solutions. You just heard from Gary leading the insights portion. You heard from Kari leading the transaction solutions. Now let's talk about services. That's really kind of the vast majority of the right side of that TAM slide. We're gonna hear from two services today. We're gonna talk to Ritchie Bros. Financial Services. The one thing that you should listen for when Blake speaks, besides the fact that they are driving the business incredibly, it is the first test for us decoupling our even internal services that we have provided away from the underlying GTV transaction. Again, just as a reminder, GTV is $6 billion in a $300 billion. The whole game on the right side of the TAM slide is how do you decouple those traditional services away from the underlying GTV and really accelerate their growth. That's one piece, and then he'll be followed by SmartEquip, our latest acquisition, which offers a unique set of services. We'll hear from them next. Blake, and congratulations in advance for how you guys are doing. Thanks very much. Morning, everybody. Blake Macaskill, Managing Director of Ritchie Bros. Financial Services. I've been with the company for about five years now. Previously, I spent the better part of 25 years working for and leading financial services organizations across North America and Europe. I think I'm gonna walk through the model, the Ritchie Bros. Financial Services model. But I think having that experience working as a lender, because the lenders are really the lifeline of the Ritchie Bros. Financial Services model, and having that experience working as a lender for 25 years, I really think that that brings a lot of value because I understand what's efficient from a lender perspective and how that improves the economics. If it improves the economics, it's passed along to the Ritchie Bros. customers. With that, I'll walk you through the model here. The business was established about 10 years ago, and it was established as a value add to provide Ritchie Bros. customers, obviously, with an opportunity for financing. The hypothesis was, if they have financing in place, they'll bid, and they'll bid higher. The value prop, you've heard a lot about it today, is all around speed and convenience. With us, its speed, ease, and convenience. That's really how we've grown the business over the years, is really making the customer experience a great experience from start to finish. Much like Kari is doing, she's developing an inside sales team. Our model was built on this inside sales team for the entire 10 years. We have many different sources of lead generation. People can be on the website. They're poking around the website. They'll see opportunities for financing. They'll fill out an application that comes to our inside sales team. The inside sales team reaches out to them, gets some more information, and then they fill out an application and hopefully get an approval and then ultimately fund the deal. The main source of origination is an outbound strategy. Every day, our inside sales team will get leads from people that buy at an auction, people that are runner-up at an auction, watch listing on the website, and more recently, registering for an auction. The idea there is getting upstream in the sales process. Our team prioritizes those leads. We do it automated now in the last couple of years, and then they'll prioritize who they call on. They'll call the customer. They'll get as much information from the customer as they can in order to then determine which lender to send this to. We don't use our own balance sheet. It's all. The risk is all with the lenders. We put it into a model called lender preference. From that, we determine which just has the highest probability of conversion when we send that to the proper lender. That's efficient for the lender and also for the customer. Maybe just back for one sec, just one thing. Once the deal funds, the billing and collecting and servicing is all done by the lenders, but the journey, the customer journey is all managed by our team, the Ritchie Brothers Financial Services team. That's really important to us because we're reaching out to them on kind of a three-to-six-month basis to say, "Hey, do you need any more financing? Can we help you with anything you're purchasing?" Now my team's really excited about the evolution in the marketplace because instead of just talking to them about financing, we can talk to them about insights with Rouse or other services like SmartEquip. That's continuing to evolve. The team's really excited. Maybe next slide. You can see here the growth over the last 10 years, significant growth and significant opportunity ahead. Couple reasons for this growth is we're constantly looking to improve the experience for the customer by offering different products, different services from a financing perspective. A couple I'll highlight here. Back in 2016, we introduced something called PurchaseFlex, and this was a real differentiator for us in the marketplace. What it's all about is, the customer can get an approval with us, and they can go to the auction thinking that they're gonna buy a tractor, and they might leave with a wheel loader. Our lenders honor that approval, whereas if they were dealing with their bank, they have an approval for a tractor, then they have to go back to the bank. They have to get a new application filled out based on the dollar, the age, the type of equipment, and it's not efficient. The customers really like the efficiency and the flexibility that this PurchaseFlex product is offering. The second thing that's really important, you see the difference in the orange and the gray lines here. The orange lines represent what's financed within the Ritchie Brothers ecosystem. The gray lines are what's represented outside of Ritchie Brothers. You can see that growth happening. What drove that growth is what we call Follow the Customer. If you think about a customer going to an auction, there's a lot that they're bidding on. There might be 10 people bidding on that lot. Four or five of those people bidding might have Ritchie Brothers financial services approvals in place, but only one is successful. What we learned about five or six years ago is why don't we honor that approval if they find that equipment somewhere else, whether it be privately or through a dealer. You can see here, the lenders all got on board because they've already done the work to do the approval, and they're all Ritchie Bros. customers, and they honor that approval. We follow that customer, and you can see how that's grown over the years. A lot of that is private sales, and the lenders were not really comfortable at first financing private sales. We introduced something called PurchaseSafe. PurchaseSafe really cleanses the deal for the customer. When a buyer and seller are interacting, we'll take care of clearing all the liens and making sure that it's a cleansed deal, not only for the buyer but for our lender. The lender feels really comfortable financing those private sales. The other piece here, because of that speed and convenience and why the gray area is growing so much, is we're getting smarter as a business, thanks to Ritchie Brothers and some of the automation that they're kind of putting in place. Now, let's say we get 1,000 leads every day. We can only get to 500 of them. We wanna make sure that we're getting to the right 500. Because of the data that we're getting from Ritchie Brothers now, we're seeing that we're calling the right leads and our penetration and conversion is going up. The other thing that's important to point out here is the growth in the last couple of years is really coming from the retention of our people. We measure everything at RBFS, and the one major thing we measure is the contribution people make in all parts of all departments of the company, but primarily in sales as their tenure grows. You can see here, from 2021 and 2022, we had very little retention issues. It's because we spend a lot of time on the culture, rewards, recognition. Somebody coming into the business the first year, they might contribute maybe $100,000 in revenue. If we can keep them to year four or five, they're contributing kind of $1 million plus. It's something we spend a considerable amount of time on, and we think that the opportunity is grand if we can keep those people longer. Next slide. For those familiar with NPS, this is extremely important to us. This is the likelihood of people referring RBFS to a friend or colleague. These are extremely high numbers, and we know that because we have 20 lenders in our supply chain, and they all measure NPS with their direct business. I'd say best in class there is kind of in the mid-40s. This is a real indicator to us of second, third, fourth deal and continuing to do more financing with these lenders or with these customers over time, within Ritchie Brothers, hopefully, and also with you know for buying equipment somewhere else. Okay, this slide, I've talked a lot about kind of what we're doing with Follow the Customer outside of Ritchie Brothers. What this is illustrating is what the opportunity is within Ritchie Brothers. It's grand. You can see here, what this is saying is we penetrate about 14.5% of the GTV sold, the addressable GTV, really what the auction sales are. We think that there's a tremendous opportunity to grow this. There's a number of reasons for that. One is, again, I'd say, because we're leveraging other services now within Ritchie Brothers, we're bringing more value to the RBFS customers, so they see more value in financing the equipment up front because then they can take advantage of other things with us. The other thing is, our lenders are becoming way more efficient. With this lender model that we've built, instead of it cascading from one lender to the next, they're only getting the deals that really fit their strike zone, and they really appreciate that. That way, they're able to provide better economics, better rates to our customers, longer terms, better structure, and that'll be something that'll drive the penetration in the GTV going forward as well. I think that kind of covers most of it. You did great. So I think the important thing here is you're gonna get two flavors of services. Ritchie Bros. Financial Services are homegrown solution, but one that we are unleashing on the broader marketplace. When you see that growth rate, when you actually say, "Okay, orange bars were constrained by the Ritchie Brothers, GTV, gray bars unconstrained, and then unleash the data, have a great team, say go," just an incredible potential. When you see the numbers, still drop in the bucket. Yeah. Rounding error compared to what's ultimately available. Incredibly inspirational. Congratulations to you and the team. Thank you. Before we let him go, any specific questions for RBFS before we bring in the SmartEquip team? All right. Oh. Oh. Yeah. Got you. How do you see RBFS working with the IMS software as it goes forward and kind of the increased kind of attached potential, if you will, outside of the auction? Absolutely. Do you wanna- Yeah, let me start. Yeah. Blake can add. This is back to, I think Jim's words. RBFS is doing its thing and growing just incredible leaps and bounds without relying or being constrained. When the architecture comes, think of that as more the automation and moving that way up, right? Imagine an environment, we're not in that environment today, but as soon as somebody hits the website, they instantly get a, "Get financing for anything you need in the next 12 months." You know, those are the kinds of things that make the growth rates, which were, you know, even that much more staggering. Think about an efficiency, an ease of use that just takes everything Blake and his team do, accelerates it, and makes it wildly efficient, because today it's dollar for dollar heads. Do you wanna- Just also being able to attach in transportation costs, getting everything bundled into the finance and that a buyer might want. We have to get out earlier in the process to make it happen. Blake and his team do a great job when we know this information, but really, the marketplace will help, you know, get us farther up to help make those decisions. That is actually the perfect intro to SmartEquip. Blake, congratulations. Let me start the SmartEquip story. The story has the catchphrase, "Would you like fries with that?" Okay. We're in a strategy session, and our vision for the marketplace is the checkout, right? Imagine a scenario, somebody wins a piece of equipment at auction or on MP-E, they're successful, and today we're done. You know, it's like, congratulations, Anne. You know, how would you like to do the financing? Where this all comes together is imagine the pieces, to Jim's point, that are already in place. We've inspected 100% of that equipment. We know what it needs. Financing. We know the parts it needs. It's used. We know if there's a service contract available on behalf of our dealer and OEM partners, we know all of these things. Imagine a world where instead of each of these. It's freezing in here, by the way. I agree. Like, is it me? I'm always cold. Imagine instead of a world where these things are discrete, financing, transportation, parts, service contracts. Imagine where, and again, I bring you to the analogy of the car world. You're buying a car and somebody tells you, "You want a sunroof," and somebody says, "That's $4,000." You're like, "Well, I live in Philadelphia. It's kind of overcast. Like, is it worth it?" Then somebody says, "It's $7 a month." You're like, "$7 a month?" Click, click, sunroof. That's the idea with do you want fries with that, right? Where it's all bundled, as Jim said, into the financing, so you get all of your pieces where you say, "Look, congratulations, you won the piece of equipment. Based on the financing, here's your monthly payment. Would you like to add transportation? Would you like to add these parts? The service contract, the monthly payment goes from X to Y," and it completely recalibrates. This is back to the question that was asked around, you know, is there value from the dealers or. You know, again, imagine you're trying to sell thousands, tens of thousands of dollars of value, and you have a customer that's discreetly processing that transaction, and obviously as the equipment ages, those penetration rates get lower and lower because that's a lot of money. We turn that completely on its head using the kind of the leasing model from cars, if you will, rolling all of that into the financing and part of the transaction. It's incredible. That was the vision. In our minds, that's the vision for where we're headed, but how do you get it done and put the pieces in place? Then we find out about a business called SmartEquip. Without stealing the thunder, because we're gonna hear about it from the incredible team, today we're gonna hear from Alex, who's the founder and the genius, literally college professor behind it. Fern is the CEO that's scaling the business. The day we heard about it, we were excited. The day we heard it was for sale, we were more excited. Then we sat down with the team you're gonna hear from in Connecticut. Jim and I went up and we were done. With that, please join us. Thank you, Ann. My name is Alex Schuessler. As Ann mentioned, I'm the founder of SmartEquip, and I started the company back in January of 2000. It was a weird coincidence how we came up with the concept. I had two jobs at the same time right up to then. As Ann mentioned, I usually hide this part, but I was a college professor, young, at NYU, and I'd been hired because previously for my doctoral work, I'd set up data centers at Harvard and MIT and then came over to do the same thing for them infrastructure-wise and also teach what nowadays turned into big data kind of stuff. We didn't call it that then, and we didn't have data scientists, but it was basically statistics. At the same time, through a very strange coincidence, I was invited alongside to become a co-founder of a company called Caterpillar Rental Services Network. Needless to say, that opportunity didn't come through the political science department at NYU, but it was somebody that had been asked to come back to Caterpillar and opened the rental business. I was doing both things at the same time because I couldn't decide between them. We discovered that what happens. I became very obsessive about the equipment life cycle and noticed that one of the things that's really killing the life cycle by a million cuts is getting the right part to the right equipment at the right time. I would go and do my daytime teaching job, and I would realize, wait a minute, there are a lot of methods here that would fit. I finally sort of took the plunge, and we started SmartEquip. We took a long time. This thing would only work if we really became the industry standard, the rental industry, which was a big task. Then came 2008, 2009, which presented both challenges through the financial crisis, but with it also a lot of opportunities. The opportunity was that all of sudden companies were really serious. We need to be able to scale. We need this technology. We were at the time, not built to that. One of the people that had been sort of in the background for a very long time with us is Brian Rich, who is here, and he was here as Executive Chairman. It was a great opportunity cause then we said, "Look, let's restructure the company." Brian came on board fully. We've been working closely until then, and one of the first things is we brought Fern in, who's been our CEO. Jointly, we work very closely together. We've been scaling the company. If there are two passions, one of them is the equipment life cycle, and the other thing, which is what I've been doing for the last 10 years or so, is really focused on the international growth, which we'll touch on as well. Let me hand it over to Fern. He's going to give you an overview, and then I'll touch base on some of the international stuff. Thanks, Alex, and I'm excited to be here as well. I joined SmartEquip in 2010, as Alex mentioned, as part of the team to reshape the way the company was structured and really take it to the next level and scalable. Prior to that, I spent 20 years in the construction equipment industry. I could say I was a customer of Ritchie Bros., I was a customer of Rouse, and a customer of SmartEquip. Alex brought the product before it was really a full product suite. Sunbelt Rentals, where I was an operator in my region and we were, you know, using the product and balance. It's exciting to be able to see the businesses from both sides, as a customer of our great company now and then also as an operator now. What do we do at SmartEquip? We basically provide complex equipment parts procurement, cataloging, and commerce technology services worldwide. We've been doing it for, you know, since 2000, since Alex had the idea. Next slide, please. Okay, what does that mean, as the SmartEquip platform and the network that we've created, right? We in essence connect equipment owners to manufacturers and distributors, and provide access to critical parts and service information. Okay? With that information, we drive efficiencies and probabilities through these businesses, by allowing them to proceed with you know, accurate orders that can be processed digitally and delivered, and really eliminating all errors in that. As we grow our networks between equipment owners and sellers, it provides an increasing network effect of being able to connect providers. Next slide. The value we create for the equipment owner firsthand is increased wrench time and equipment uptime, right? What does that mean? We literally leveraging our platform and delivering asset-specific content to a technician are able to shorten the diagnostic and procurement cycle, from an example of 45 minutes that we've done in the case study down to seven minutes, giving that technician the ability to work on more machines, which in essence creates and makes that a machine available for rent or for production. We also reduce order errors in orders, making sure because we're creating the purchase order on the equipment owner side and delivering the sales order to the seller, it really eliminates all the errors within an order and facilitates an easy P2P process, right? Procure-to-pay process. Lastly, which is one of the unintended results of the application was really improving the administrative capabilities, right? Through maintaining item master files, you know, updating work orders and creating and making sure that the whole process is digitized for that fleet owner and really driving down the cost of processing a transaction. On the seller side of the network, what we found is by embedding the content of those manufacturers, their IT into the sales process and into the equipment owner's workflow, it became significantly more sticky to buy the part from the manufacturer as opposed to going out and trying to shop it around. They saw a true benefit from, you know, the point and click, add it to the cart and check out process as opposed to being shopped. The other thing is that we deliver the content when the customer needs it. The site is up and running, the platform is there. They can access the parts books, the schematics, the repair manuals, the diagnostics, information 24/7 at their fingertips for the technician. The last benefit to the suppliers that wanna highlight here today is, it really dropped their customer support calls and the amount of inbound calls, "Hey, I'm looking at this part. Can you help me find what it is for this piece of equipment?" It really increased customer satisfaction. Next slide. What does our network look like today? We have about 1,000 suppliers, of which, 600 of those contract directly with SmartEquip, with OEM and brands. We're operating in 20 countries. We're processing about $1.2 billion of order value through our network. You know, which is one of my favorite statistics is we have 109% net retention rate of our customers. Once they check in, they don't check out. Next slide. Alex, you wanna take this? Yeah. Just briefly, people ask us, why do you work in North America, Europe, and the Pacific Rim? The very simple answer is, again, we often see the market by looking at the rental industry, and if you look at the rental industry as the size of it sort of trending towards about $150 billion, half of that is in North America, the other half is split between Europe and the Pacific Rim. As of 10 years ago, we've been really focused on growth in Europe, and that's going very well. We're about to announce another new dominant fleet owner going live there very shortly. In Japan, through partnerships, we have two of the four largest rental companies that we focus on. We're in 20 countries. We're now at seven owners. Aktio is not counted on this one yet. Aktio is the largest company in Japan, second largest in the world by some counts, and there are about 125 suppliers that are outside of North America supporting that rapidly growing network there. Next slide. How do we go to market? We, in essence, go to market with three products. The first product is the app gives the sellers and OEM manufacturers specifically access to the network, right? That's our catalog product sitting in the middle of the ecosystem. What that means is that they subscribe to the network. We're taking their intellectual property and converting it into our format and being able now to present it and onboard to either their own e-commerce site that we may power, that gives them full transactional capabilities or to an equipment owner's procurement site, which is the third product that we go to market with. With that, I'm gonna hand it back to Alex to take us through the demo of the products. Yeah, I wanna connect that slide that was just up there with what you'll see in the demo. Typically, in technology, you have a procurement platform for buying, or you have a service support platform. If you look at people who run fleets, typically you have a procurement department and a fleet management department. These are very vertical types of presentation. What we've done from the very, very beginning is we said, "Well, wait. If I'm a service guy, I need to know what I'm buying, but I can't do that unless my service side is also being supported." We have a horizontal view that we track the equipment lifecycle. What you're about to see in the demo, bear in mind, it has a procurement, sourcing, platform in it, but that is really embedded in the workflow that a service technician has to support the equipment. What you saw here is the catalog technology that Fern mentioned earlier, and embedded within that is a sourcing technology. And as it says in the demo, sourcing is both from your shelf as well as from the supplier. It's really the integration of the two wrapped around each and every asset. What has happened. Let's go next slide. Here again you see we get the product information. If you think about this from the manufacturer's perspective, it's a huge step forward for them. Instead of hoping that you'll come to their website and know how to navigate it, you're now taking all of this information and injecting it directly into the workflow of your customer service technicians. That's all there. There again, you see that we looked at product information inventory, and we're able to automatically submit the purchase order. On the last slide, which is the next one here, one thing that's been fascinating for us is over the last several years, many of the manufacturers, including the ones that were highly reluctant initially to participate in this, they came to us and said, "We are now offering a level of efficiency to those customers running SmartEquip on their side. We'd like to open this up more. So don't just inject that into United Rentals, Sunbelt Rentals, HERC, and so forth. Also, we would like to power our own e-commerce suite in the same way." What we see quite a bit now, and there's a lot of growth in that, both here as well as in Europe, and hopefully soon in the Pacific Rim as well, is our new e-commerce offering, which is really using the same platform, using the same document standards, the same transactional logic, with additional payment capabilities and so forth, so that people can come in, whether it's by credit card or otherwise, and really have a one-stop architecture that they can utilize from their suppliers. Let us stop here and see if there are any questions. Perfect. Before questions for these guys, just a piece of context. We're just full circle. We buy great businesses with great management teams. Shout out to Brian in the back, hiding. A system that can pipe in an incredible value to our ecosystem. I wanna take what just happened and think about what does do-one-price would that practically mean. We are not ready for this yet until that thin slice, that bootstrap that, Baron spoke about is ready. Imagine a world where Jim's team is inspecting the equipment anyway, but has a Muir app open that is this. As they're inspecting, they're pre-populating the cart effectively. I'm just gonna use an example. I'm gonna do Eastern Canada and Toromont because we don't do business with them because they have a great sales used equipment network of their own. However, we do transact quite a bit of Caterpillar equipment in Eastern Canada. Imagine a world where Jim's people have inspected, they've pre-populated the cart with the parts. We have a part number for the service contract for Toromont. Somebody wins an auction, and then we say, "Congratulations. Would you like fries with that?" That order automatically pipes to Toromont in this example into their parts bin, turning over that customer relationship. Again, to the extent that they're able to do that on their own and they don't need us, great. To the extent that it's accretive and value-added to them, we do it seamlessly, we roll it into the financing, the customer gets passed to them as it should, and we move on with life. That's the vision for how this fits into the ecosystem and the incredible business that SmartEquip is that has all of those pipes built over decades of work. With that, questions for SmartEquip, and then we'll open it up to a broader Q&A that Jim will host. Nada. In that example, I do cover Toromont. What happens if in that example, they place the parts order and they say, "Aha, customer A has just bought, you know, an eight-year-old piece of Caterpillar equipment, and, you know, once we fulfill that parts order, we're now going to co-opt that relationship and, you know, any future parts needs that they have are going to come through our e-commerce site. No problem at all. We have been very, very clear. The value added for the dealer, our value is not to usurp the customer relationships from the dealers. It's actually to pass those. Think about as we are a transaction solution, right? The idea is for customers for whom the ease of use of the SmartEquip model just makes it easier, really the way to think about it is, in the rental industry, which is how they seed their business, they have so many brands under one roof that they don't wanna reach out to one dealer at a time. They just wanna click right through the platform that makes sense. If somebody has just a single piece of equipment and what we wanna be is customer-facing, both for our partners and for our customers, and not usurp relationships, but promote them. You know, it's our best day that we can facilitate passing that customer to Toromont, facilitating the transaction that they otherwise wouldn't have had or they would have had to chase down. They don't have visibility into that customer. To the extent we can add value, great. To the extent that we can't, we're not gonna worry about it. Again, what gives us a lot of confidence, $6 billion in $300 billion, and then all of that services revenue on the right that is even bigger. As long as we can keep our true north of adding value, we don't have to worry about cannibalization, protectionism. All we have to worry about is ease of use and partnership, and the money just comes rolling in. All right. In that case, thank you so much to the SmartEquip group. Incredible. Jim, you wanna take us into the broader Q&A? We know we kind of did Q&A after each section, but if there's something you would like us to tie together, talk about anything in more detail, we're more than happy to answer anything that's on your mind. Or to my left, we'll answer anything you have. Curious, I know we're doing hybrid auctions, et cetera, and you're going back to more full-time, but, and with the gavel dropping. When and why or how would we think about just moving strictly to TAL? And if you did, what would kind of the impact be to the, to the margins? In other words, what's the friction of doing it the way you do it now? And if you move to TAL, how much beneficial would that be? Yeah. I'll just start. The biggest thing we're trying to figure out right now is a level of social engagement the customer wants, and also a level of education we need to do to the customer about the services that you heard about. Part of our events in the future, think about an Apple-ish type of event, launching services and things and educating the customer. But they also get a chance to engage with each other, right? Kari and her team get a chance to keep that relationship going from a sales. Kind of think about instead of sales day being about I need to see a piece of equipment, that's happening. That's all digital today, right? To your point. It could be TAL, it could be all that stuff. But think about there is a level of social engagement that's gonna happen. Now, how many events? What's a premier event like Orlando? Do you do four or six globally or how do we educate and do all this stuff? That's kinda where we're thinking and where we're headed with this. Now to your point, look, we've done a lot of analysis between TAL, live auctioneers, what's the benefit of one versus the other. But we do have customers that want a live auctioneer, right? I feel like this is how I get the benefit. We have education we have to do, right? Because when you look at the data, we don't see a real variance between a digital TAL event and a live auctioneer, right? But that's work we have to do culturally, internally, customers, to get everyone there. And that- Now, the one thing we've already taken advantage of, we don't ramp anymore. Even Orlando, we didn't ramp, so that expense has been gone, as we went through. There's pieces that are happening, but we're working with the sales team and operational team to bring the organization and our customers along on this journey to make sure we can transition into a true digital experience. You know, the way to think about, just to keep going with Jim's commentary about the P&L, this isn't about, at the end, saving money. Yes, we're gonna get more efficient. Please don't, you know, as we scale, it's gonna flow right through. It's the beauty of a marketplace, and we're gonna get efficient lots of ways. The idea of TAL or auctioneers or anything else, it's not about the, because we're spending money into as less and less buyers are coming, we want them to have videos, 3D. I mean, we're spending money on all of this, so make no mistake about it. In Orlando, if you think of that as a premier event, the cost of that versus having a couple of bid catchers and an auctioneer, it's orders of magnitude higher, but it's about the customer engagement. I'll just share one story. We go to Orlando. For those that attended, you know, it was a blowout event. We had, you know, a live concert, we had fireworks, we had, you know. It was incredible, right? Literally, the words heard most often from customers is only from Ritchie Bros. As Jim said, though, that also gave us an opportunity not only to interact with them, but to showcase them all of the new services that we bring to bear. We then did a smaller version in Edmonton, and I'll just share. I had COVID, so I couldn't go. Dave Ritchie went and said, and I quote, "He never thought he'd live to the day where the auditorium was empty, but the parking lot was full." We had more customers than we've ever had before. They were in the yard. They were kicking the tires. We had food trucks set up, Wi-Fi, so they could bid. They had no need for the actual transaction. They had a need to be there, to look at the equipment, to interact with us, to learn about the services, to interact with each other. They crave that social interaction. For us, the KPI of the end, we're gonna be testing as we go. Do we have six? Do we have 16 of these? Do we have four? At the end, we're gonna let the customer interest dictate us, but we wanna make it, as Jim said, much more interactive, much more fun, much more of an educational, and bring the customers in, and less and less and less about sale date. They don't need us to do that for sale date. I wonder if you can dive a little bit deeper into the first thin wedge that you'll be launching around inspection. Because that alone, at $2-$4 billion TAM, versus your revenue base and some penetration, will drive a lot of service growth. Could you just talk about what else you need to do on the operational side rather than technology side? Do you need to double the size of inspections? Do you need to do an acquisition? Just to understand how we can start to see that service revenue come online. In a related note, just talk about the cadence of other thin wedges. Is it yearly basis? Is it every six months? Just so we can understand that flow through. Yeah. It's great, and it sounds like I'm doing my one-on-one with Anne each week of asking this question, so it's fun. But no, to your point, look, for inspections, we're already touching the equipment, right? We have to take pictures of it. We have to list it. We have to get make, model. That's already happened at the yards. Whoever went to the site yesterday, when Dolan took you around, you saw those lanes, right? That stuff's already taken place. For us, it's really taking that inspection work we're doing and how do you make it visible, right, to the customer. We're already doing it. Now are there a handful of other steps we have to do that take us five more minutes than what we do today because we're gonna go a little bit deeper? Yes, right? You're talking, you know, a person making $22 an hour, five more minutes, you know, and it's not gonna be every category that we touch, right? There's gonna be certain categories for inspections that make sense. That's kinda operationally, it's already there to be had, right? If you even saw Orlando, we did something called 360 videos, where we're now also, for certain categories, taking videos. If you ever seen a car where you can spin it, you can look underneath it, you can go inside of it, you can look at hours instead of odometer, right? That's already taken place. Infrastructure's there as we do it. Now, what I would think about for the thin wedge, and I'll pass how often and all that to Baron Concors, cause I wanna say tomorrow and the next day, but I'll let him do a realistic answer. For me, what's most important, yes, we're pre-purchase inspections, and yes, it gives us monetization. The core foundational thing that we're gonna get out of it is how can I invoice someone? How can I give them a receipt? How can I collect payment? That's the first foundational piece that I can use across all my platforms. Now, for an inspection, that's $300 the first piece is I take a credit card. Then when it gets bigger, ACH, bank wire, we add to the collection process. For me, what I'm excited about inspections, I love the chance to monetize cause we're already touching equipment and, you know, it just fits right in. The key foundational piece of the marketplace, I now can create an invoice. I can now have a receipt. It goes into your account. I can now collect money. think, the next piece is, okay, a buyer and a seller. Now I need to settle in this process. Another foundational piece of a marketplace, create an invoice, have a settlement take place. That's what I'm really excited about, is these foundational pieces I can use across all my platforms, and then it makes us so much more efficient on the back end. Cause remembers, today, I have people doing all these things on different platforms. This becomes one source of how do we do it, which streamlines the rest of the process. I'll pass it over to Baron for how often. Yeah. Oh, yeah. Just to answer your question, I mean, obviously, it depends on the thin wedge, right? Like, you brought up the question, how do you operationalize it? If there's a lot of work, then obviously it takes longer to come to life. In general, our goal is to be delivering business value every quarter, right? Every, you know, six to 12 weeks, there's a thin wedge that we're working on. Some of it, you know, clearly is gonna be along the lines of buying an inspection, and some of it, to Jim's point, is gonna be stuff that's more back end, foundational, where it's gonna come to life. That, that's the goal is every single quarter we're delivering business value. Just the last piece is the scoping of it. Just to be clear, IronPlanet has always, quote, monetized inspections, but it's really been kind of a shroud. I want to make sure folks understand it's been part of their fee structure, right? Like, you want to list something with IronPlanet, we dispatch remote inspectors, we charge for the inspection. But again, you have to do that. You know, it's really a seller fee. What we're talking about here for that first thing—so about 20% of our business is IronPlanet, 80% is kind of in the yards. That 80%, we don't monetize at all. That's just within our four walls, just to give you a sense. Then there's all of the other stuff, the listing services where folks can order inspections. Again, to Jim's point, we have the pieces. That's the way IronPlanet has always done it, which is it's a remote location. What percentage of the inspectors are full-time versus the flex force? Say it's 30-70, 40-60. Yeah, and the lower number, full-time and contractors for the second part that we kind of flex dependent on volume. Now you can understand full circle where Baron started, which is we wanna pick a thin wedge that will drive value immediately, that will build the foundational pieces Jim is talking about. And that's where you know, if there is a, you know, a piece for the leadership team to play outside of the functional areas is to take those pieces very smartly so that they can build the most foundational pieces, but can also drive the P&L of the business, you know, almost tomorrow. All right. What else is on your mind? I was waiting for one of the Ritchie Brothers to ask a question and raise their hand, so that was. They're waiting. They're coming. Oh, that was good. Maybe I can ask another one then. And Jim and Ann, now, without Euro Auctions, you're kind of sitting in a different path going forward. You have a great balance sheet. You said you have a solid line of acquisitions. You've laid out a map of where you don't have acquisitions maybe to feed the services of where you're looking. Could you maybe just elaborate on how you think of capital allocation and acquisitions going forward? Do you now accelerate your SG&A as a different way of capital allocation? It reduces your cash from ops because you don't need CapEx and. I'm just kinda conceptually trying to understand how you're gonna apply capital allocation and how we should think of the acquisitions as the path forward for your growth. Yeah. I'll start and then pass it to Ann. The one thing when I think about the businesses that we've acquired in RBFS, the one thing I like about the businesses is they can take full advantage of our transactions that we have on the transactional side of the business, but they also have a way to generate revenue without that transaction. The businesses we think about for future acquisitions are similar in that nature, that they can generate revenue outside of our transactions, but they can take advantage when those transactions are there to have it. When you're thinking about future acquisitions and what's missing in the marketplace, think about businesses that fit that scenario, that take full advantage of what we provide, which is awesome, but then you can also get a revenue stream when it's not going through an auction for us as we go through it. Really excited to use capital on that. Now, I look at SG&A a little bit differently, right? In the short term, we might have to add a little bit to get the growth that we're talking about because we're doing it manually, right? As we've talked about in the quarters, so that might happen. I do believe when we get the marketplace up and you're doing one invoice, one settlement process, one back end, self-service, my account, that helps us streamline the back end. I do think there's this curve that's gonna happen, right? Yes, in the short term, as we go through this process, we gotta build it a little bit to be able to manually produce what we're talking about, and then, you know, we get efficient on the back end after that. I know Sameer's looking at me because I usually say a lot more than what I'm supposed to, so I'm gonna pass it to Ann before I get in trouble. Before you get in trouble. Yeah. Before you get in trouble. Let's talk Euro Auctions, and then kind of our learning and then, you know, how we think about our, incredible balance sheet. Just cards on the table. Again, we've said the exact same thing. We look at businesses that are doing very well. We look at great leadership teams, and we look what it can do for the ecosystem. Let's talk about Euro, right? It's a business that's doing very well. They're a higher growth rate than we are in Europe. They're still, you know, kind of mid to low-single digits, but higher growth rate than we've been in Europe. We really appreciated the Keys Brothers management team. We thought they built something really great. The impact to our ecosystem was the fact that they approached sourcing exactly what Jim said, a very different way. We had a choice. We could buy that, and that's what we chose to do because that would speed it up. Given what happened with the CMA, we can't, so we're gonna be forming our own sourcing group that will have an SG&A impact to it, of course, because it's gonna be a homegrown solution versus not. The way to think about our balance sheet, which is enviable and stealing Sharon's words, it's about optionality. Where the breakage comes is speed. Think about the businesses you've heard today. Could we build a Rouse? Okay. Do we have 20 years to do so? Hell, no. You know, could we build a SmartEquip? Probably. I don't know if we're smart enough. We don't have a college professor in our midst. Do we have 20 years to do so? Hell, no. As we think about our pipeline, the number one KPI is speed. With a balance sheet like we have, we have the optionality to do it organically, but it's gonna be slower, or speed everything up and unleash it. Kevin Geisner, who you haven't heard from, but runs our strategy organization and is the keeper of our pipeline, it's healthy. When you think about a marketplace and that kind of TAM potential, there's really no end. Again, every time you see us expanding capital, you should hold us to task to say, "Are you buying something healthy? Are you buying a great team, and is it fast-forwarding you? If the answer to any of that is no, you should call us out. I go one more, I think. You know that and obviously the toughest environment it's been, right? We all know that. At the same time, none of your competitors really seem to go out of business, which maybe we would have thought happened, but perhaps it's because the software providers out there that are independent allow them to pivot their businesses. I guess the question is, the software providers have had really rapid growth in excess of GTV. Have you thought about, or is there a specific reason why you're not being the independent software provider to your competitors really to get that growth? Yeah. It's for sure on the spectrum, but this is where we have to be very honest about. We have a business called Xcira, which is a software provider to the auction space. You know, we can certainly leverage that for other, you know, other auctioneers. For us, it's just purely a priority of really understanding the value we bring, and I'm gonna take a page out of Matt's book, which is our value the demand? Like, what is it we're offering to these third parties? Candidly speaking, yes, we can offer the Xcira white label auction platform. If we offer our global demand, which is where we make the impressive fees that we all love, like, are we gonna be actually shooting ourselves in the foot and it's gonna be a chase to the bottom? This is where we really peel down what is the offering, what is the unintended consequence, and what is it getting us? You know, Xcira, much like all the other businesses, is free to run their business. They're free to offer their auction technology to others. We feel like if, instead of just offering the auction technology, we actually offer our global demand base at a much lower fee structure, no one's gonna like that answer. That's kind of how we weigh it. We weigh it. I think just for me, you know, when I think about what Kari took the team through and the market share that we can grow, for me, the value in growing our market share and to be able to utilize the infrastructure that we have, I would rather compete against those brands that you're talking about and go get that business with our ability, with our relationships, and our team, I think in the short term. To Ann's point, I think we have the optionality to attack it whatever way we want. My preference is I can get more money and profitability and flow through if I can leverage what we talked about in Kari's section versus that part of it. I think we have the ability to go get market share. Yep. Just please make no mistake about it. If we see a business, much like Euro, that is in our sweet spot, but has a unique set of capabilities and can fast-forward something for us, we certainly have a balance sheet where we don't have to be shy about acquiring that business. Okay. With that, we'll conclude our investor event. Lunch is set up outside. I encourage all the Ritchie folks to spread out and eat lunch with our valued analysts and our investors. Let me know if you have any questions. Thank you for coming. I know some of you are headed to the airport right after this. No. Thank you so much for taking your time. We appreciate it. Thank you. Thank you.