Okay, good morning, everyone. My name is Vik Chopra. I am part of the MedTech Equity Research team here at Wells Fargo. Pleased to introduce Micah Young, EVP and CFO from Masimo for this session. Micah, thank you for joining us today. Thank you, Vik. Let's start off with a few big picture questions. Maybe just talk about what's changed in the macro front since you reported Q2 earnings in August. What's gotten better, and has anything gotten worse? Yeah, so I'll start out with healthcare. In terms of the healthcare environment, I think we're seeing, you know, consistently stable trends in the healthcare space. Census has been strong this year, especially coming out of the last quarter, and we also, you know, we've also seen an environment where we're able to get in and install on a lot of our contracts this year than we were last year. So strong census growth, and the ability to get into hospitals, you know, place our equipment, our installed base, and generate and drive revenue. You know, we've seen that success in the H1 due to our strong contracting and census being better than it has been. You know, we drove about 14% growth in consumables and service revenue in the H1 of the year. And, you know, H1 revenues for healthcare were close to 10%, they're just over 9%. On a year-to-date basis, we're seeing. We feel like with the strong backlog we have, not only just, you know, the strong contract backlog, but also strong order backlog, you know, we're seeing that going into the H2. You know, we're expecting growth of 10% growth, and that's really with a down capital market or, you know, capital year for us. So in the H1, as I mentioned, consumables grew 14%, but capital is down 15%. And we expect that trend to kind of continue throughout the year. Although we are seeing, you know, some improving driver numbers. We saw that in Q2. We expect those to be up above 60,000 a quarter. So the environment's very stable for healthcare. And I'd say, you know, the one that's been more difficult for us has been the more on the consumer side. The consumer demand has been challenged with inflation and with also just, you know, a sluggish housing market, and that's impacted, you know, that business this year. But, you know, we put out guidance. We feel good about the guidance we've put out for this year, and we're driving hard to hit those numbers. Got it. So you know, with the recent concerns around macro weakness and a potential recession, are you expecting or have you seen any impact to your end market demand? Sorry, the first part of that, your- With the concerns around the ma- The concern, yeah. ... the macro weakness and a potential recession. Yeah, I mean, we're continuing to watch it closely. I mean, it's definitely challenged us this year. We do have a lot of, you know, we've made a lot of, you know, investment to drive certain categories, like, headphones, hearables, and those seem to be doing well. The challenge has been really the core of that business. You know, the core audio home entertainment-type systems, and that's been challenged with the consumer, the broader consumer market. Got it. Let's switch gears to your spin. You recently announced that the exclusivity period with the JV partner has expired, but you're still continuing talks with them, as well as other parties that have approached you. What's the latest update you can provide with respect to the proposed separation evaluation? Yeah, so we, as you mentioned, we let the exclusivity period expire on 15 August 2024. The JV partner requested that to be extended through that time, and of course, we've been getting some inbound interest for buyers of the consumer audio, just the consumer audio business. So we want to be able to communicate and pursue those. And you know, we've re-engaged with Morgan Stanley to help us with that process. They're our primary bankers there, and we're reaching out to some of those parties that have you know initiated some interest. We're also broadening it more to bring in others into that process. So that's ongoing. The JV partnership talks are still ongoing. You know, can't give a definitive timeline of when that will be. It's not really in our control at this point. But they wanted to bring in, you know, the JV partner wanted to bring in some additional strategic partners. You know, those that can, you know, really help support the initiative to drive what they're interested in, which is the hearables and wearables business and consumer health. So they're working through that process. We've been through a lot of diligence with the JV partner, so majority of that has been completed. There may be some additional diligence that comes up with any new partners that may come in, but we're just waiting to hear back. Hopefully, within the next few weeks, we'll hear some more and continue those discussions. But no real formal timeline there, which is why we're going parallel with a potential sale of the audio business. Okay. And can you share any additional details on who these other parties are that have approached you, just in terms of, you know, I mean, not, not names, obviously, but just- Yeah. I can't disclose a lot of details there. I mean, you know, I don't wanna get... It's still very early in the process, and we probably got into more details than we would've liked with the JV partnership, so I don't wanna go there. But, so, you know, we've got some inbound interests. Like I said, we're opening it up to more that we think are good buyers for that business. ... Okay. And what feedback have you received from the board on their preference for a spin versus a sale versus a JV? There, the board, you know, the view is, it's pursuing all options, whether it's, you know, the JV partnership, the, the joint venture going after that, or whether it's to sell the ADI business alone, or if it's, separating both businesses. I think it's, it's evaluating all options and, and seeing how do we, how do we maximize value for shareholders? Okay. I know you said nothing with respect to timelines or definitive timelines, but, you know, your AGM is coming up. Mm-hmm. Should we expect a decision before that, or is that not a gating factor? No, I mean, whatever options come up and arise, if there's any material developments, we'll communicate that. I mean, we've been very, very open with, you know, how the stages of the JV process with... You know, by communicating the expiration of the exclusivity, and if there's any material events, we'll definitely communicate those. But I just hate to strap a timeline around it. Yeah. It's already challenging enough when you're not going through a proxy to do a process like this- Right ... and we wanna make sure we do it the right way. Got it. Let's talk about your guidance for this year. You've updated your guidance, post your Q2 call. You raised your healthcare sales guidance. Mm-hmm. Just talk about what gives you confidence in that new guidance range for healthcare. Yeah. Well, I mentioned before, I mean, we're seeing much better, much improved census. You know, anything, anywhere from inpatient surgeries. I think some of the public hospitals in the H1 were seeing some 3%, you know, close to 3% growth in inpatient surgeries. Overall admissions growth, they were seeing between 4% - 5%, and with more outsized growth than some of the outpatient, but still very solid growth in the inpatient admissions. So we, you know, we're seeing good census this year, and we're expecting that to continue. We put a... You know, we've kind of implied, if you look at our range, it's really driven by a lot of its census, because we've stripped out a lot of, you know, all the any large orders, any, you know. We're not expecting any major change in capital environment, which has been a headwind for us this year. At some point that will, you know, no longer be a headwind, but we're being cautious about it. And really, it's driven by our consumables and service revenues, and the range is really driven by how well census does for the rest of the year. Because we've had strong contracting, we've got the installation schedules rolled out. Those are kind of, you know, planned in our guidance, and it's gonna depend on kind of, you know, from here on out. It's gonna be more dependent on census. So two follow-ups. The first one, just remind us what your guidance now assumes for inpatient volume growth? Mm-hmm. Yeah, so when you look at our admissions growth for the year, you know, we're somewhere between 2.5-4%. I think it's in line with what other public companies have announced as far as the public hospitals. You know, I think one of them mentioned 3%-4%, and I think that's very consistent with what the others are saying. So we're kind of in that zone. That's how we're expecting it to play out. You know, what's exciting is we're with the contracting we're doing this year. I mean, last year was a record year for the business in terms of new contract and new business with customers, net new wins. In terms of revenue value, we did nearly $400 million. If you go back several years ago, we were doing $100 million, and we were targeting, you know, just to get over $100 million. Now we're trying to deliver another $400 million this year. So you know, H1, we delivered $234 million of net incremental new contracts. So we're pacing very well. It's setting us up very well for growth as we move into next year, and giving us the confidence that we put out there, that 7%-10% long range plan of growth. Not only driving top line growth, but, you know, we wanna double earnings within the next five years. So, those are our targets that we've put out there, and I think we've got a good trajectory coming out of this year, that could move us well towards that goal, as we move into 2025. Got it. If there are any questions, please raise your hand and we'll come to you. You've mentioned capital a couple of times. Mm-hmm. I think it's been declining sales, a bit of a headwind for- Yeah ... you know, some time now. Just talk about that capital environment, when you expect that to recover or turn around? Yeah, I mean, it's a combination of factors. I mean, there's been, it has been a softer capital environment. You know, I think hospital budgets are always challenged in, in environments like this, in terms of the capital side. I think, you know, where we thrived, in placing capital during, the last, you know, call it four or five years, there was a lot of focus around patient monitoring at that time, pulse oximetry, especially, you know, when you had, respiratory diseases like COVID, and higher acuity patients going through systems. So there's a lot of capital budgets, you know, move towards, patient monitoring. I think, you know, coming out of that environment, where they were less focused on the higher intensive capital, some of that's probably refocused towards that area, but I think it's gonna stabilize. I just don't know when, and, you know, we're set up very well with what we're seeing. We saw a low point of driver shipments in the Q1, which we mentioned coming into the year. We're seeing the patterns of OEMs, where there's, during the supply chain challenges over the last couple of years, we believe the OEM, our OEM partners, had taken some extra, you know, technology boards, and we've delivered those as drivers to them that go inside their multi-parameter monitors. And, you know, now that they've worked through those inventory of boards, 'cause they were, they were concerned with chip shortages and different things. They were concerned that, you know, there wouldn't be sufficient inventory levels. So I think that dynamic's kind of played through, and I think we're back into a much more normal environment, and that's gonna set us up on a good trajectory going into next year in terms of driver placements. And, you know, being on kind of a back half exit of over 60,000 a quarter is gonna set us up very well. And hopefully, that'll, that'll start to normalize the capital for us as, you know, just overall, we'll start to see the stabilization. We won't see the headwinds of it being down 15%. One other weighting factor has been, you know, over the years, there's been a lot of accounting rule changes with ASC 842 and how you account for equipment on leases and under where you've got sensor commitments, kind of a recurring revenue stream combined with capital. You know, that's been a little bit of a headwind for us as well. So, I think we're getting past some of those headwinds, and I'm excited about what's shaping up for 2025. And I think the capital environment- Mm-hmm ... also obviously impacts your LRP that you put out, Yes ... right? The high end of the range, I think, is contemplated on capital recovery. Yeah, I think, you know, we feel, I feel very good about our 7%-10% growth we put out there. You know, we are on a much larger base. I mean, we're 2 times the amount of revenue today than we were- Right ... you know, five to seven or seven years ago. So we are growing off a higher base, but we're seeing great success in driving that recurring revenue through those contracts. The capital environment's tough because, you know, when you do have a down capital environment, it's, you know, like for this year, it's become, you know, probably two to three points of a headwind. So that. You know, that's why we have that broad, net range and... But, you know, we still feel good about that range in terms of driving through and delivering on it. Got it. That's helpful. You know, you talked about the driver shipments. I think you said greater than 60,000 shipments per quarter in the back half of the year. Mm-hmm. So two-part question. One, do you think consensus is now at an appropriate place for driver shipments for 2024? And is there any room for upside to your driver placements? Yes. I think right now it's in a good place. It looks like it's very close to what we've put out there. And you know, we outperformed what we thought even in Q2. Coming into Q2, we thought maybe, you know, we'd be above 55,000. We delivered, I think, 58.5 or somewhere close to that number for Q2. And you know, we're seeing encouraging trends right now in terms of kind of where that's heading in terms of the back half. So we'll see where that plays out, but I feel good about what we put out there of being exceeding 60,000 a quarter, and that starts to kind of move into that kind of run rate moving into next year. And keep in mind, I mean, the most important metric I look at is, how are we doing on contracting? What comes off of these contracts, all we need to do is place about 20-25 thousand of new drivers a quarter to deliver our top-line growth. And call it 80-100 thousand, somewhere in that zone per year, to deliver that growth. So, we're doing that today. And I think what you saw was just the timing of ordering. I bet you if you saw what was delivered through to customers and what was placed at customers, we're seeing. We're probably closer to the 60 thousand in Q1, if that makes sense. Mm-hmm. So it's just more on timing of inventory management by some of the OEM partners and how that flows through to customers. 'Cause there is a lag 'cause we ship it to them first, they put it in their monitors, and then it goes to the customer. I feel good about the underlying demand, the strength of our contracting, and what that's gonna do for us going into next year. Got it. Just one last one on your 2024 guide. Just remind us what's contemplated in getting to the low versus the high end of the ranges. Yeah. So for 2024, I mean, the majority of it's gonna be census. You know, it's. How does census perform? We are indexed heavily towards census, especially over the long term, but even in the near term. As census performs well, you know, we see strong, strong performance in our consumables. And that combined with our contracting, but it is really what's really driving that growth. And, as far as the range, I would say majority of it is where we're expecting that range of census in the back half. You know, you're talking very low single digits to be at the bottom, and you're probably closer to 4, 4% or so at the top. So, hopefully, we'll see those trends continue, and we're continuing to see, you know, strength in the business in terms of how we're taking share. So, you know, we'll see how that plays through in the back half. Got it. You know, we're in September. I'm sure you're planning for 2025- Mm-hmm ... at this point. Just kicked it off. Yeah. Yeah. Just, you know, how are we thinking about the outlook for your healthcare end markets in 2025 and, you know, any potential headwinds and tailwinds, especially on the top line for next year? Yeah, I mean, if I look at kind of where we're going, we still have a lot of runway and, you know, we still believe we have a lot of runway in pulse oximetry to continue to take share in that market. Our brain monitoring, Rainbow, and capnography and gas monitoring, all those are performing extremely well, especially when you look at the consumables growth that we're seeing in those areas. You know, we've got some volatility in comps this year on Rainbow, but we still expect that to hit our target growth on consumables for the year with double digits. And you know, if you look at capnography and gas, as well as brain monitoring, you know, those consumable revenues have been growing faster than 20% in those categories. So... So I expect those end markets to be very strong for us as we move into next year. We're launching, you know, ORI in the U.S. We received 510(k) clearance of ORI outside, you know, late last year for distribution in the U.S. So we think that that's gonna be a great opportunity for us to grow in those end markets. And it's only been approved outside the U.S., and we've achieved, you know, gotten that revenue stream up to 20% of our Rainbow revenues. And as you know, the revenue for Rainbow last year was about $200 million, so we did about $40 million just with ORI alone. So, you know, that's only with being approved outside the U.S. Now we're going into our largest market, and hopefully, it'll become, you know, ultimately, we'll see how it plays out, but maybe that will ultimately become standard of care. But we'll see. And, we know it's, we know it's become standard of care in certain countries, and, and we're hopeful. We're excited about that product and how, how we'll be able to launch that in the U.S. And then, and then the last thing, too, is, you know, we're, we're getting into hemodynamic monitoring. That's been something that we've been really getting into this past year and, and starting to advance that platform, with the, you know, with the opportunity to combine cardiac output, that we, that we can measure today with the acquisition of LiDCO that we did years ago. Combining that with Rainbow can now give us the opportunity to provide oxygen delivery, and that's a important measurement for hemodynamic monitoring. So that's gonna be another thing to kinda keep an eye out for in terms of an opportunity for growth into the future. Got it. You know, just switching to gross margins, I know you've shown some gross margin improvement in 2024. Mm-hmm. How are you thinking about gross margins in 2025 as more production is moved to Malaysia, and how do you see your gross margins trending over the next couple of years? Yeah. So last year, you know, coming out of several years of inflation and also dealing with the, you know, a lot of inflation coming out of Mexico, the government was raising minimum wages by 20-25% a year for the last, call it, five years. The peso was going the wrong direction on us. It was putting a giving us a lot of headwinds. We've been up to 60-67% gross margins prior to all that occurring. So, you know, that's been a major headwind. We pulled the trigger as soon as we saw Malaysia become a more cost-effective job or manufacturing hub for us. So we pulled the trigger on that over a year ago. We're two-thirds of the way there as of the end of Q1 in terms of manufacturing our sensors, and we should be fully up and running as we exit this year, so we're starting to see some of those efficiencies, the lower labor costs, the production efficiencies playing in right now. It takes about six months to roll those through our inventories, and that's why we're seeing, you know, implied in our guidances, you know, we're stepping up from kind of that 62% and that, you know, 62.5%, you know, in the first three quarters, roughly, stepping up to closer to 63% as we exit this year. So that's gonna get us on a good run rate as we move into 2025 in terms of margin lock, you know, trying to lock in at least 50 basis points of margin capture next year. And, you know, we've got engineering teams that are working on further cost reduction initiatives to lower our cost of products, you know, whether it be sensors, you know, equipment, sensors, disposables, and those type of projects. So hopefully, those will layer in and also give us more expansion opportunity. And as we continue to streamline and become more efficient in Malaysia, you know, there's gonna be more opportunity ahead to expand those margins. We wanna get to, you know. We want. We're driving hard as we can to get to 30%. We're not giving up. We've got a good plan for that, and that plan is only getting to 66% gross margins. We've been there before. We can do it again. It's hard to recover or recapture all those inflationary costs, but we've got a good plan to execute ahead that's gonna get us the ability to claw some of that back. Micah, the 50 basis points, that's specific to gross margins, right? Yes. Yeah. So could there be upside to that? For gross margin? Yeah. There could be. In 2025? Yeah. We've gotta work through our plans. I don't wanna get ahead of that. Right. You know me, I'm... Yeah. I'm very cautious- Okay ... and I wanna make sure we lock it in and have high confidence in our guidance. But we feel very good about the trajectory we're on right now. Okay. Then, hopefully, even more leverage throughout the rest of the year now. Got it. Yeah. Yeah, so this, just the last follow-up question on 2025. Mm-hmm. You know, is there an opportunity to expand operating margins next year? Absolutely. You know, our goal is to drive towards 30%, and the only way to get there is to show meaningful improvement each year toward that goal. We're gonna roll up plans and put together plans that's gonna get us a meaningful step towards that long-term goal within five years, so. Got it. Helpful. Just switching to the Apple litigation- Mm-hmm. What's the latest? Is there an update you can provide? Yeah, no, no material update there. Things are moving forward in both the trade secret and the patent infringement cases. I believe the trade secret case is in around October, November timeframe, and then patent, somewhere near that as well, in terms of the patent infringement. So there will be more updates to come, but nothing material at this point. Okay. You know, you recently filed a preliminary injunction seeking an order enjoining Quentin Koffey and Politan from voting against many of the proxies until they made corrections to their disclosures. Mm-hmm. Just walk us through the implications of this complaint? Yeah, I mean, you can read through the details. We put out a letter to shareholders, I think it was, what? Two days ago. That'll summarize a lot of the details, but, I mean, just kind of, just broadly, you know, we believe that there's been misleading information that's been put out there about, you know, Masimo, the board of directors, Joe, and just, you know, there's a lot of misleading information out there. We wanna make sure that shareholders have all the facts and all the, you know, the right proxy materials to make the best informed decision. I can't, you know, emphasize this enough, but this is a very risky situation we're in, and it's very concerning. I mean, there's a high risk to the future of Masimo. And I think it's very... You know, looking at it from my perspective and, and, you know, we wanna make sure that investors are informed, they know, you know, the risks here. The risk is, you know, Politan, you know, I believe they wanna take control of the company, and they wanna take control of the board. And if you're gonna take control of the company, you need to have a very credible, concrete plan. And, you know, it's unfortunate that, you know, some of these proxy advisory firms have taken positions that have really just taken all the information out of the fight deck of the dissident and put it into their reports. And I feel like it's not considered the fact that, you know, this is a control, election. This is a matter of control. It's not, what's the harm in adding a few more board members to our board? And by the way, we wanna get to nine to... You know, nine or 11 members. You know, so we wanna expand the board, and we wanna get highly qualified candidates for the board, and to put around the table. But to go after control of a company to where you have the majority of the board members, you've got to have a plan. And I feel like we've put out a very credible plan, that's a five-year plan, how we're gonna double earnings, how we're gonna grow top line. We've got one of the best leadership teams I've worked with, to do that, and we've got a very capable leadership team. You know, it starts with Joe at the top in terms of his vision, his innovation, his relationships with customers, his relationships with our employees. And I think there's so much at risk here of disrupting the momentum of the business. Right now, we've come out of an incredible Q2. The fundamentals of the healthcare business are stronger than ever. We are absolutely committed to pursuing a separation of the consumer business. Joe committed originally that he wanted to see three years. Mm-hmm. He's wanting to do it earlier, and it's based on data. It's based on seeing that, you know, the business isn't performing at the level right now that we expected, so we're trying to do all the right things to maximize value for shareholders, and you've got a known team, a leadership team that's delivered results. You know, we've beaten expectations for 25 consecutive quarters, yet we had a tough Q2 last year, but we've come out of that very strong, you know, and we're back on that path again, and I just hate to see the risk of that momentum, you know. It's just a lot of risk, and I just hope shareholders will consider what's at stake here and make the right decision. Got it. Mm-hmm. That's a very comprehensive and helpful update. Your annual meeting is set for 19 September 2024. Is there any risk that it gets pushed out again? Well, I don't know what's gonna come out of the court. So there's gonna be everything goes to court next, what is it? Next Monday, I think, 9 September 2024. Yeah. So there's gonna be an outcome from that, from the courtroom, and we don't know. I don't know what exactly that would look like. But, you know, the biggest thing is we wanna make sure we're correcting all the misstatements out there and the misleading information, and that's the goal, to make sure, like I said, shareholders have an informed vote. What goes beyond that, I don't know. I think, you know, we empathize. We're exhausted. We know shareholders are exhausted. We just wanna get this behind us, but we also wanna do make sure that all the information's out there. Okay. So even after 9 September 2024? That's right. Is there nothing you can provide with respect to the SEC subpoena as well as the DOJ subpoenas? No, I mean, I've talked a lot about the SEC subpoena. The process we went through, we feel like we did all the right steps there. We fully cooperated. It's just more just hearing back. We haven't heard much back yet. So, that's still ongoing. And it's very isolated to one particular employee- Mm-hmm ... that's part of the consumer business, and it dates back to, I believe, 2022, the first year of the acquisition. And we went through the process both internally and externally with our external auditors. We had a third party, one of the big four firms, come in. I had them come in right away once I heard some concerns around some of the accounting for the consumer business that you know existed around the time of the acquisition. And we went through a very thorough process. We feel like, you know, I've I feel very good about where we are and what we did, and the steps we took, and hopefully, the SEC will conclude that as well. With regards to the DOJ, you know, that's still ongoing. We're fully cooperating, and you know, in terms of revenue of that product, it's not a material amount of revenue that's tied to that product line, so we'll see what the outcome. And have you stated how big those two product lines are? I think it's Rad-G and Rad-97. I mean, they're, they're immaterial to revenue. It's very, very small percentage of our revenue. Yeah. Yep. Hi, Gabe. Yeah, I think so. Yeah. Thank you for giving the commentary on gross margin expansion. Yes. Can you just talk a little bit more on OpEx? Yeah. Does that have a chance to, you know, come down? Talk more about whether operating margins for OpEx expands or inputs? Yeah. Yeah. Years ago, when we laid out our trying to get to 40% OpEx, I mean, if you look at our professional healthcare today, we're sitting right around there. So we've gotten there, but we still have a lot of runway ahead. This is a game of scale for us because, you know, we're trying to increase productivity, do more with less, be efficient with our resources. We've made the investments to get into new markets outside the U.S., to try to grow revenue in those markets and expand. Now it's a matter of leveraging those investments. So that... I think we've got a great leverage story ahead of us for the next five years, and continuing to leverage operating expenses in addition to the gross margin improvement to come. You know, I think ultimately, you know, I think I meant to put out there that we think R&D can get down to closer to 8% of revenue, longer term. Again, today, our operating margin profile sits at in the probably about the 85th percentile in the industry. But we want to be up in the top quartiles or in the top few percent. So that's why we're trying to charge towards 30%, you know, closer to some of those companies like Intuitive and Edwards. They've done a great job of managing margins. But it's a scale game. I mean, we're a fraction of the revenue of some of those companies, and it's a matter of continuing to grow that top line 7%-10%, being very tight on how we allocate investment and leveraging expenses. And then, as a follow-up, thanks, thanks for that. Your gross margins are doing well- Mm-hmm Because you have a lot of consumables. Talk a little bit about the pipeline of innovations you have. Yeah. Things like that, that carry higher margins. So, and then, is there a point at which we start to see an inflection or even maybe an acceleration in margins, as the newer portfolio becomes a greater% of the sales? Yeah, I mean, it's been a steady shift because it's been. You've seen a pretty consistent growth in, you know, our targets as far as pulse oximetry, you know, kind of we've done that long-term plan of 6%-8%, double the market growth. Rainbow growing 10%, and with capnography and brain monitoring, those growing, you know. Now it's kind of 10%-20% just because we are contemplating some capital in, into those numbers. But consumables has been outpacing, so we are getting that nice, favorable mix there. So that's been a good inflection for us. I mean, I think a year ago, we were about 61%. Now we're guiding this year up 62.5%, and we brought that up even 60 or 70 basis points from what we originally guided. So things are tracking the right direction in terms of favorable mix. As we start to upsell from a two-LED sensor to a four-LED, I mean, it's gonna drive more leverage of fixed cost, but also, it's gonna drive better margin expansion as well. So there's a lot of levers. I mean, not just Malaysia, where we can get lower cost of, you know, lower labor costs, drive efficiencies, but and also the engineering team is driving costs out. But mixed benefits should be very strong as we move forward, especially as we're driving that consumable with a nice recurring revenue growth. We're expanding our revenue per driver. I think our installed base maybe grows 3%-4% over time, because we only need, you know, 80,000-100,000 of new drivers a year. I think our revenue per driver is gonna grow, you know, probably closer to 4%-6% per year. That's gonna continue to help us lever, drive better mix, and expand margins as well. Good. I think we're at time, so, thank you, Micah, and thank you, everyone, for attending. All right. Thank you.