Good day, and thank you for standing by. Welcome to the Cerence Q1 2023 earnings call. At this time, all participants are in a listen-only mode. After the speaker's presentation, there will be a question and answer session. To ask a question during the session, you will need to press star one, one on your telephone. You will then hear an automated message advising your hand is raised. To withdraw your question, please press star one, one again. Please be advised that today's conference is being recorded. I would now like to hand the conference over to your speaker today, Rich Yerganian, Senior Vice President of Investor Relations. Please go ahead. Thank you. Welcome to Cerence's first quarter fiscal year 2023 conference call. Before we begin, I would like to remind you that this call may involve certain forward-looking statements. Cerence makes no representations to update those statements after today. These statements are subject to risks and uncertainties as described in our SEC filings, including the Form 8-K with the press release preceding today's call, our Form 10-Q, which will be filed today, our Form 10-K, filed on November 29, 2022. In addition, the company may refer to certain non-GAAP measures, KPIs, and pro forma financial information during this call. Please refer to today's press release for further details of the definitions, limitations, and uses of those measures and reconciliations of non-GAAP measures to the closest GAAP equivalent. The press release is available in the IR section of our website. Joining me on today's call are Stefan Ortmanns, CEO of Cerence, and Tom Beaudoin, CFO of Cerence. As a reminder, the only authorized spokespeople for the company are Stefan, Tom, and myself. Before handing the call over to Stefan, I would like to announce that we will be presenting at the virtual Baird 2023 Vehicle Technology and Mobility Conference on February 15th, and in early March at the Morgan Stanley Technology Conference. Now on to the call. Stefan? Thank you, Rich. Welcome, everyone, and thank you for joining us to discuss our first quarter earnings. I'm pleased to report we had a strong start to the fiscal year, driven by our core auto business. Each of the key financial metrics provided in our guidance came in above the high end of the range. Tom will share the details with you shortly. At our Investor Day in November, we laid out our strategy for long-term sustainable growth for Cerence, what we are calling Destination Next. We described the evolution of our technology and the role it plays in the car of the future, an immersive companion that goes beyond conversational AI, extending to all aspects of the user experience inside the cabin for both driver and passengers, and even outside the car. We also provided our long-term target models, which reflect not only the increasing level of adoption of current, of our current technology with programs already awarded, but also the future adoption of a greater suite of technology that Cerence will bring to the market. This was an important event that allows us to share with all of you the excitement we have for the future of Cerence. In the nearer term, the first quarter showed continued success across customers and product innovation. Working with our customers, we delivered 47 SOPs, start of production, in the quarter, including 18 initial program launches. We signed two competitive win-back contracts in the auto space, one in Europe, one in China. These are significant because both represent takeaways from consumer tech and validate our continued competitive edge. Our experience in large language models, combined with our deep mobility experience and generative AI expertise, is vital to drive innovation and expand our position as a category leader. In addition to various competitive design wins, we added two new logo wins, one in Europe for auto and one in China for two-wheelers. The two-wheeler win now brings the total of two-wheeler customers to seven, and we expect that number will be even higher by the end of the fiscal year. Two-wheeled vehicles continue to be an important adjacency, providing a growth area for Cerence and our Destination Next strategy. While we are seeing slow improvements, the macro environment remains a challenge. Semiconductor shortages are still impacting auto production, although there has been some improvements of the supply. We are hopeful that the slow but improving trend for access to semiconductors continues. These shortages have led to a pent-up demand for autos, where in many areas, inventories remain low. There is a concern about a potential global recession in 2023, but that does not appear to have had any impact on auto production at this point. The latest forecast from IHS, aligned to our fiscal year, is for 2.5% growth year-over-year. After our strong first quarter, we are slightly raising the lower end of our full year guidance. We remain confident that we can achieve the goals we set for the fiscal year and continue to deliver predictable and medium and long-term sustainable growth. In addition to the business highlights for the quarter, I would like to also share with you some key innovation highlights across our products. With our razor-sharp focus on innovation, we have a distinguished competitive advantage. It is evident that our customers rely on us to jointly create unique mobility experiences for their customers. As the automotive industry transitions to electric vehicles, these experience will become an increasingly important aspect of differentiation for our customers. Continued innovation is key to our customers' visions and to our future growth, and the strong momentum for our current products and technologies provides a solid foundation as we extend our AI expertise to other areas. At the core of our current product portfolio is Cerence Assistant 2.0, the foundation of our Co-Pilot offering. This product is perfect example of what we refer to as scalable AI, where we can take a product developed for the auto industry, and with minimal engineering, apply it to an adjacent transportation market, such as two-wheelers. As you may recall, Cerence Co-Pilot runs directly on a vehicle's head unit with advanced AI deeply integrated with car sensors and data to understand complex situations, both inside the vehicle and around it, while securely integrating edge technology with cloud services to make driving more intuitive, connected, and enjoyable. It's clear that mobility OEMs see the advantages Cerence Co-Pilot brings to their vehicles. Q1 saw four automotive design wins from customers in Europe and China. With Cerence Assistant 2.0 as its foundation, Cerence Ride, our offering specific to the two-wheeler market, was awarded three design wins in the quarter, including a key win for a major Japanese manufacturer, where we had to compete against both consumer tech and niche competitors. Cerence Ride offers unique features like providing the rider with distraction-free navigation, route planning, and riding records, enabling a safer, more enjoyable experience. By using their voice, riders can now navigate, listen to music and other media, adjust settings, and even control their smart home devices, all without taking their hands off the handlebars or their eyes off the road. Further expanding the reach of our technology, Cerence Link is a comprehensive solution that bridges the technology gap between connected and not connected cars by providing the ability to capture vehicle diagnostic, sensors, and telemetry data, as well as car geolocation and other useful information that is delivered to the end user through a mobile app with a rich user interface. With Cerence Connected Vehicle Digital Twin as its foundation, Cerence Link is able to apply cloud-based intelligence on this data to enhance driver safety, security, comfort, and convenience. When we first introduced this product last September, we had already secured an important customer win in India, which is already contributing to revenue for the company. In Q1, we won our second customer, also in India, demonstrating continued adoption for this new solution. These key wins for Cerence Link and Cerence Ride indicate continued adoption in adjacent and expansion markets, proving that we are focused on the right areas that can support continuous long-term growth. Lastly, during the quarter, we had a customer launch a significant expansion of capabilities leveraging our Cerence Car Knowledge product. The innovation is an upgrade to the OEM's existing solution and makes accessing digital owner's manual information and remote vehicle controls as easy as possible, delivering additional value for the drivers. Customers can chat with the assistant both in the car and via Facebook Messenger from anywhere, asking vehicle-specific questions or remotely starting, locking or unlocking their vehicle. The system leverage generative AI to understand more net voice commands and provide more engaging responses. I'm very excited about our current line-up of products and our growth in important adjacent markets, but even more so for the products yet to come under the leadership of Chief Technology Officer, Prateek Kathpal, and Chief Product Officer, Nils Schanz. This slide may look familiar to you from our investor day, but we feel it's important to revisit to continue to ground ourselves in all what we have accomplished in the past 12 months and where our focus is moving forward. We have the customers, the innovative product and technology, and the strong competitive position to deliver long-term sustainable growth. Now it is all about execution. As you heard from me in November, and as remains true today, our goal is to deliver on what we have promised to our customers and investors. We have had a strong start to the fiscal year and we are focused on keeping the momentum going. Before I hand the call over to Tom to review our Q1 results and Q2 guidance in detail, I want to reinforce the key points of our Destination Next strategy. Destination Next applies to all aspects of our business. It shapes our product strategy as we innovate to deliver a truly immersive companion experience in the car. It position us as a key partner to our customers as they seek to create unique branded experiences. It doubles our served addressable market over the next seven years, providing excellent opportunities for growth once we get past the FY 2023 transition year. It puts the company on a path to deliver strong growth, profitability, and cash generation over the long term. The entire company is behind our Destination Next strategy, and I'm excited to keep you informed as we continue to make progress towards our long-term goals. I will now turn it over to Tom. Thank you, Stefan. I'll come back to guidance in a moment, but first, I wanna share more on our Q1 results. One of our goals has been to develop a track record of doing what we say. With our strong Q1 results, we are providing another positive data point in accomplishing this goal. We are committed to continuing to build upon this trend to establish a proven track record of predictable performance. Q1 revenue came in at $83.7 million, well above the high end of our guidance. This is due to a combination of better-than-expected strength in our core business, with higher than anticipated contributions from connected services, professional services, and fixed contracts. Consumption of existing fixed contracts in the quarter was lower than originally expected due to a longer projected consumption time for the Q1 prepaid deal than our model. The higher amount of fixed contracts in the quarter remain within the framework of $40 million fixed contracts for the full year. Because of the higher revenue, we exceeded all of our key profitability metrics we guided for the quarter. Non-GAAP gross margin was 70.4%. We have done in common. Non-GAAP operating margin was 20.5%. Adjusted EBITDA was $19.7 million or a 23.5% margin. Non-GAAP earnings per share was $0.36. All these metrics came in above the high end of our guidance. During the quarter, cash flow from operations was approximately -$2.1 million. While CFFO was negative in the quarter, we expect positive CFFO for the full fiscal year. Our balance sheet remains strong, with total cash and marketable securities of approximately $120 million. Here is our breakdown of revenue of the quarter. Variable license revenue was up 22% from the same quarter last year and 38% quarter-over-quarter. The increases were due to reduced consumption of fixed licenses, slowly improving auto production, and increasing penetration. New connected services revenue was down 12% from the same quarter last year and up 3% from last quarter. The year-over-year decline was the result of several disclosed factors, such as lower production of connected cars over the last two fiscal years due to semiconductor shortages and expiring contracts for older technology, separate from the legacy contract. Our professional services revenue was up 3% year-over-year and down 5% quarter-over-quarter. Professional services are a key indicator of future license and connected services revenue, as the pro services team includes the individuals who directly interface with customers to customize and implement Cerence's technology on next-generation OEM platforms. We don't see professional services as a revenue growth driver for the company, but instead acts as an enabler for future licensed and connected revenue. Moving on to the details in our license business. Overall, the license business remains strong and is indicating slow improvement from the issues that have plagued auto production over the last few years. We signed six contracts in the quarter worth $19 million, $18 million as prepaid contracts and approximately $1 million as a minimum commitment deal. This was slightly above our estimate going into the quarter of $18 million. We continue to manage fixed contracts to an approximate $40 million level for the full year. While there was a small minimum commitment deal in the quarter, we do not expect minimum commitment deals moving forward. Pro forma royalties were up 5% year-over-year and 7% quarter-over-quarter due to increased auto production. Consumption of fixed licenses declined 14% during the same period. While difficult to accurately predict, we do believe the consumption of fixed contract licenses should peak in fiscal 2023. The majority of our KPIs continue to indicate strength in the business. Our penetration of global auto production for the trailing 12 months increased to 52% from 51%. This means over half of global auto production includes some level of Cerence technology. Of the total 11.5 million cars with Cerence technologies, those that used our connected services increased 4% quarter-over-quarter. We also saw a big increase in monthly active users, 19% year-over-year, indicating increasing popularity among consumers of our technology. Turning to revenue guidance for Q2 and the fiscal year. One factor that we have an impact on our quarterly revenue is the value of fixed contracts in a quarter. Fixed contracts were $19 million in Q1. We expect fixed contracts of approximately $4 million-$5 million in Q2, approximately $15 million in Q3, and none in Q4. Taking that into consideration, we are guiding to $64 million-$68 million for Q2. With Q1 behind us and greater visibility into our fiscal year, we are also raising the lower end of our full fiscal year guidance from $270 million-$275 million. You can see on this slide the revenue guidance and effect of the associated financial metrics. Overall, the business continues to perform as we outlined at our Investor Day, and remain focused on innovation and execution to achieve our long-term goals. This concludes our prepared remarks and now we will open the call for questions. As a reminder to ask a question, please press star one, one on your telephone and wait for your name to be announced. To withdraw your question, please press star one, one again. Please stand by while we compile the Q&A roster. Our first question comes from Luke Junk with Baird. Your line is now open. Good morning. Thanks for taking the question. Want to start with a mechanical question this morning. Tom, can you just help us understand the lower than expected consumption of fixed contracts this quarter? I know you mentioned it had something to do with prepays. Is that timing related, mix related? Is it right to think that this doesn't flow through to full year guidance or not? Thank you. As we've talked about previously, we typically, a prepaid gets consumed, on average over six quarters. The particular prepaid that we did in Q1, the projected consumption on that particular deal is estimated at about eight quarters. From our modeling and from the way we had set our plans and guidance, you know, that has a positive effect in the short term. Understood. Thank you. Follow up, I just wanna ask a bigger picture question, Stefan. Wondering if there's any additional color you can provide on the Co-Pilot winbacks in particular. Maybe if we could discuss key system capabilities you think that help to drive those winbacks versus the competing consumer tech. I don't know if you could comment also on your previous positioning with these customers, if that would make sense. Thank you. Thanks for your question, Luke, yeah, and good morning. Our Cerence Assistant 2.0, so-called Co-Pilot, is actually well received here at the OEM sites. We had various design wins last quarter in Q1. One was against a big tech giant, and another one was also again in China, was also a tech giant. Yeah. We had also some very competitive design wins against the big tech OEM. Yeah. What we see here and feedback from the market is actually outstanding. In all my discussions with the OEMs, they say, "Okay, wow, that's really a cool solution." "It's extremely fast in the response time behavior. It has a broad coverage, but it goes also into deep learning" and what we said also, generative AI search capabilities here. Combined with Proactive AI, for example, leveraging sensor data and also leveraging the information around the surrounding of a car, for example, road information and also this kind of weather forecasting here. That was actually well received. Yeah. We have a great prototyping solution here and OEMs want to work tightly with us together. Seeing Co-Pilot as a foundation, but in most of the cases, they want to have also a kind of their own branding and experience. Got it. Thank you for the color. I'll go ahead and leave it there for now. Please stand by for our next question. Our next question comes from Colin Langan with Wells Fargo. Your line is now open. Oh, great. Thanks for taking my questions. Just first question. Guidance is just to confirm, is it based on IHS and... IHS has actually come down for September year-end. Is that incorporated and what is offsetting sort of that weakness in production? Yeah. Maybe let me start first, and then I will ask Tom for putting his color to it, right. In general, right, IHS came down roughly 3% from 6% year-over-year, and now it's in the range of 2.5%-3%. That goes actually hand in hand with our projection from the beginning of our fiscal year. Yeah, we had baked in when we had done our original planning, we had taken a relatively conservative approach. Interestingly enough, IHS has come down more to the numbers that we were projecting. We don't use solely IHS in our forecasting because we get, you know, reporting from all of our customers every quarter on their royalties. We use a combination of overall market trends and that what we're seeing from our individual customer royalty reports, and that's how we base our guidance. Got it. Okay. That makes sense. If I look at slide nine, you look at like new connected services, I think you highlighted something like a 19% increase in monthly users. That line hasn't really moved very much. It's not really showing growth. What is sort of keeping the growth back in that new connected segment, and when should that start to inflect back upward? It's a combination. I mean, as we've talked about previously, there are some older platforms that are not up for renewal, that are kind of winding down. We've also lost kind of 2 years of revenue because cars were much lower, you know, we're down $20 million a year of production, and that represents connected opportunities that we would've had in the amortization of those revenues coming in the current periods. As we talked about at Investor Day, there's a number of wins that will start to go into production at the second half of this year and into FY 2024. A lot of those wins include some of our connected services, which will start to help us to drive growth and get us more towards the growth projections that we had in 2024, 2025 and going forward. The usage, I think, is important. It doesn't directly correlate to revenue because it's the revenue of connected services that are shipping on the cars. What it does do is to show that our technology is being used more, it's being accepted, that some of our new enhancements are being recognized by, you know, the drivers and the passengers. Maybe let me also add a bit color to it here, right? I think what I just mentioned at the beginning, right? Co-Pilot, Cerence Link, Cerence Ride, they have all the connected components, right? They will go live over the next 12-18 months with the specific OEMs. We see also really an uptick here in active subscribers, right? One OEM reports also a big jump in the adoption of our so-called connected services offering. We are working also with a world-leading premium OEM on so-called additional expansion of their current cloud with this new cloud domains, this new Proactive AI for older capabilities, right? That we can bring those services, cloud services to SOP cars, so cars being on their own. We have plenty of opportunities. As Tom mentioned correctly, right, I think we are still in a transitional year. We are suffering still a bit from the auto production over the last 2 to 3 years, but we're seeing more and more opportunities for connected services. Got it. All right. Thanks for taking my question. Please stand by for our next question. Our next question comes from Rajvindra Gill with Needham. Your line is now open. Thank you, and congrats on good results and a good transition with this turnaround story. Question on the visibility, if I can. I know at the Analyst Day, you talked about kind of 95% visibility into fiscal year 23, you talked about, I believe, 75% visibility into fiscal year 24. If I look at the slides, on slide 12, you're kind of increasing your visibility for this year by about a couple points to 97% for the full fiscal year. I'm wondering how you're thinking about the visibility into the growth year, fiscal year 24. Has that changed, given some of the design wins you're talking about, given some of the more stabilization in the fixed contracts? Does that also apply to some of the longer-term, targets in fiscal year 25, 26? Raj, thank you for that. Thank you. We are happy about Q1 and continuing this story. Yeah, I mean, clearly we have stronger visibility through FY 2023. As you know, we report bookings semi-annually, so we'll be updating our bookings in Q2. Clearly, you know, we had good bookings in Q1 that will help with that visibility for FY 2024. I hope to have more to say around, you know, more, more specifics around how we're tracking to that FY 2024 growth, initiatives that we laid out in Investor Day. Everything that we accomplished in Q1 helps us towards that journey and delivering those results. Great. If you could maybe update us on the field of use agreement, I believe it's ending in two years. If you could just, you know, clarify that. Once that field of use agreement is over, what other markets can you start to license your IP? Also I think that's also a key focus area. Actually, we have three vectors here, right? One is the execution on our core roadmap, right? What we just explained with automotive adjacency transportation segments, right? The other important aspect is driving innovation, yeah. The third one is also paving the way for post-FOU opportunities. You know we have hired a very strong business development team also with a separate R&D team underneath, right? They're working already on some opportunities for this fiscal year, and we hope that we can also report first revenue driven by this team by the second half and the second half of this fiscal year. We are evaluating also other opportunities for, let's say, October 2024. I think that's one of our key, focus areas also and also part of our Destination Next strategy. Yeah. Just to make sure everybody understands, you know, as we laid out in an Investor Day, we have the transportation adjacency markets that are starting to take traction that Stefan talked about today. We have what we call the non-transportation, and as Stefan said, we've already seeded a team. Just for clarity, there are a couple of technology areas that are not subject to the FOU. We're able to seed that group, and they're able to drive some solutions, and even some revenue prior to the FOU. The opportunity expands, and that's why we're trying to get this group seeded and working well, so that when the FOU expires in now less than two years, we have a well-developed team and capabilities to then look at expansion of all of that, post the expiration. Mm-hmm. The other important aspect is also, you know, at the Analyst Day, we presented three pillars here, right? Scalable AI, then the multi-sensory experience platform plus tools, and then the immersive companion solution, right? Scalable AI is also key to success, and we can easily apply those technology to other markets beyond transportation. Yeah. More or less at no cost. Appreciate it. Thank you. Please stand by for our next question. Our next question comes from Jeff Van Rhee with Craig-Hallum. Your line is now open. Great. Thanks for taking my questions, guys, and thank you for the increased transparency. I appreciate all the incremental data points over time we're getting here. It's very helpful. A couple, several questions, if I could jump through these fairly quickly. I think, Tom, you referenced bookings. Just to be clear, did bookings meet the plan for the quarter? Net-net, I know you don't publish an outlook in terms of what you're thinking internally for the year, but has the annual outlook on bookings changed, say, versus 90 days ago? Then along the same lines, just to make sure I'm clear, the consumption number I think you talked about at the Investor Day was roughly $75 million of consumption expected in 2023. Is that still the number? Just on bookings, I mean, we'll update bookings in Q2. The reason we do it semi-annual is it can be a bit lumpy. We did have some nice wins in Q1. I think Stefan alluded to that. On consumption will be, you know, a little bit lower because of this 1 particular prepaid where we had modeled kind of 6 quarters, and it's probably gonna be eight quarters. That can vary too, Jeff, because it's all based on actual shipments from that particular tier one. It could be even sooner. Yeah. Okay. That's helpful. Stefan, you know, as it relates to generative AI, and in particular the GPT, you know, large language model is looking very disruptive. I know Bard and some others are coming, but the GPT and some of the things it's been able to demonstrate seem to take a pretty significant leap forward in terms of what these large language models can do. Giving you play in those worlds, but within a specific vertical, do you see that as competition, co-opetition? How do you view that? You know, as you were just referencing a minute ago, you've got the expiration of the FOU. Does that suggest the future FOU opportunities also end up being a bit more competitive given what these guys are demonstrating? Just love to hear your thoughts there. Mm-hmm. Mm-hmm. I think I don't see them as a direct competitor, right? We have already created a prototype with ChatGPT, but also enhanced with our deep knowledge about the Cerence Car Knowledge, right? About mobility AI experience. Yeah, you know that we have also, for example, applications such as browse, what we just also announced, the Cerence Car Knowledge, which went live with the North American OEM, right? You bring those information all together. You have the general knowledge, yeah, but also the automotive transportation specific knowledge, right? This is actually our goal, and we're already in discussion with some of the OEMs, what we can do together here. Okay. Fair enough. I'll leave it there. Thank you. Please stand by for our next question. Our next question comes from David Kelly with Jefferies. Your line is now open. Hi, team. This is Gavin Kennedy on for David Kelly. Thanks for taking my questions. Can you provide us with more details on your progress in transportation adjacencies? It looks like Cerence wrote specifically won three more design awards with two-wheelers, and your two-wheeler customers are now up to seven. How should we think about this in the context of your prior transportation adjacencies sales target of $1 million in fiscal year 2023, and I believe $6 million in fiscal year 2024? I mean, you know that the two-wheeler market is a very important market to us here, right? Compared with automotive, they are producing roughly 50 to 60 million two-wheelers on a yearly basis, yeah. I'm really proud about this big design wins for one of the big brands in Japan, where we won an evaluation done in North America against the big tech players and some niche players, right? The feedback was amazing, right, with respect to our audio AI stuff, our solutions, right? We won in terms of technology and also with respect to applications. We're doing exactly what a rider is looking for, yeah. That's one important aspect. Two-wheelers. On the other hand, you mentioned also last quarter that we had also some significant design wins in the truck space. Also, we can easily adapt our Cerence Co-Pilot to the needs of trucks here. Overall, we are doing pretty well. The other important launch, which I mentioned today, was also related to Cerence Link, where we are also connecting now non-connected cars via smartphones, via OBD, to solutions to give a better driver experience, right? We can also monitor the behavior of the driver, geolocation, and so on, so forth. I think we're doing quite a lot, also going beyond the typical natural language processing here, right? Combining all pieces together, right, I think that's actually what we want to do, right? Driving this immersive experience, for the transportation market. Yeah. Just, in these markets, as Stefan alluded to, there is a, for most of these, a connected element to the... Therefore, you know, the revenue growth- Yeah. will build over time as you have to take that portion of the revenue and amortize it over the service life, of the particular solution. Got it. That makes sense. As a follow-up, just switching gears. I believe at the Investor Day, you mentioned a cost management strategy to improve Cerence. I believe these savings, excuse me, were included in your planning discussions. Can you provide any more details here on the cost actions you've been taking? Is there any low-hanging fruit that you've addressed in the near term? Thank you. I think you're absolutely right, and we're working here with a well-known consulting company together. You know, also that we have now a real focus on innovation, R&D and customer deliveries. Therefore, we have now these two organizations, CPO office and CPO product office, run by Neil Chance from Mercedes-Benz. He joined us a couple of months ago, and we're trying to optimize here the organization for driving more efficiency, productivity, and we are also on a good track. Yes, you're right, that's part of our plan for this fiscal year. Tom? A lot of our cost initiatives were designed to drive efficiency and then, as Stefan just talked about, to drive alignment as we implemented the new leadership team across the company. We've done very well on that, and that program is well in place and being implemented. I do wanna say we're also investing, right? Yeah. It's important that we continue with our innovation strategy. We've baked all of that into our guidance going forward. The cost savings that we've achieved through the efficiency and productivity initiatives, combined with some, continuing investment. All of our investments are really in the R&D and technology areas to support our innovation agenda. Okay. Thanks for taking my questions. As a reminder, to ask a question, please press star one one on your telephone. Please stand by for our next question. Our next question comes from Chris McNally with Evercore. Your line is now open. Thanks so much team. Stefan and Thomas, if I could ask, you know, one of the things that you've provided, which is really helpful, is the pro forma royalty to sort of consist through on the licensing, sort of the underlying trend. You know, this quarter you showed 5% year-over-year growth, but we've roughly seen sort of a flat lining in this, in this number when we look at on a 2-year basis. One of the questions that I think investors are trying to look forward is when will that underlying metric sort of move up so that we incorporate some of the large orders that we've seen? You've talked about some of the launches in connected. I think seeing that essentially what is paid usage of your licensing move forward will give, you know, sort of some confidence of the, you know, higher secular growth versus sort of the low single-digit outgrowth that you're doing, today. Chris, as we talked about in the investor day, there's a number of programs that are coming to SOP. We've got to ship in cars that have deeper sets of our solution, which drives a higher price per unit. Also gets, you know, some additional volumes from those deals. I think, you know, you'll start to see that line hopefully, start to tick up over the next few quarters going into where we, you know, show some strong growth in FY24. That's great. Just maybe as a follow-up, you know, not for this call, but I think maybe, you know, a metric that would be helpful on going forward with sort of a, you know, percentage of units, you know, refreshed or, you know, a launch percentage in 2024 or 2025 versus 2023 or 2022. Something that we could start to kind of make our own estimates for. Again, you know, there's a lot of moving variables, but, you know, order of magnitude, does that start to become, you know, 5%-10% above production growth? Does it become 10%+ above production growth? Just something in that order of magnitude to give us sort of the end goal of 2024 and 2025. We see the orders, but I think we're trying to connect the pieces, you know, just to get into 2024, 2025 would be super helpful. Mm-hmm. Thanks. Thanks, team. Thanks, Chris. Please stand by for our next question. Our next question comes from Mark Delaney with Goldman Sachs. Your line is now open. Yes, good morning and thank you for taking the questions. First, when you think about some of the new wins and some of the take backs that you referred to, are those consistent with the trend higher in pricing over time? That was something that was articulated at the Analyst Day. Yeah, I think, I think overall we have various new win back opportunities, right, across the globe, not just in Europe, but also North America primarily and also in China, some great opportunities. I think overall we're in a very competitive environment. What I said at the beginning, I think, we are better even before in terms of competition, right? With our new products, right? With our, all the flexibility we are offering to OEMs. We bring also more and more features on the embedded side, but also on the cloud side, right? That was actually what we also mentioned at the Analyst Day, that we see a nice increase in the PPU that's already to embedded. I think we will also show something over the next couple of quarters on the connected side where we see also a nice upside. Yeah. Overall, I think we are doing pretty well here. Okay. That's helpful. Thanks. The second was on the connected business. You know, I believe in the past the company's talked about some component of revenue that's tied to usage of the products and whether or not when your technology's on vehicles or drivers actually engaging with it and using it. Maybe you can talk a little bit more on what you're seeing in terms of underlying usage rates broadly and was there any impact, you know, from usage rates on revenue in the quarter? Thanks. I mean, today, most of our contracts are on the connected side, you know, are not tied to usage. We do have a small amount, and we actually saw a slight benefit this quarter from one of those contracts. I think going forward, as more and more of the OEMs move to over-the-air updates, that will also help us to, you know, implement more of our solutions on cars that are on the road. May also help us with additional opportunities to have more usage or activation type revenue. That was, you know, it was small, but it was a positive thing this quarter on one of our deals. Thank you. At this time, I am showing no further questions. I would now like to turn the conference back to Rich for closing remarks. Thank you for everyone, to everyone for joining us on our conference call this morning. We look forward to engaging with you, in the future. Have a great day. This concludes today's conference call. Thank you for participating. You may now disconnect.