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#<UNK>, did you hear that question okay.
Yes, sure.
I will start covering the first part which is really about understanding our product and the use cases what customers are doing with their platform.
And then we will cover more about the secret sauce in terms of getting to the growth.
So let's start with the products that we are offering of we offer APIs that enable developer to embed communication into their business flows applications and web apps.
These are APIs of communications, obviously they are messaging, voice, chat up, and we have the largest phone number in the world, virtual phone numbers that are cloud based and also phone verification as well.
So some examples of use cases.
So in the messaging space, messaging has been used a lot about two-way communication.
So for instance, in marketplaces like taxi hailing apps or companies that provide, like our B2B.
It causes two-way communication between a driver and a passenger, for instance and they need the APIs to integrate them between the business flows.
These messages are voice.
Another example is with phone verification.
Phone numbers have emerged as an identity for people online.
And phone numbers have been used to identify people and so essentially we see an important trend and phone number becoming the identity and sending a message for a phone call to identify that the person becomes a critical part of the business flow of that business application.
And regarding the second part of the question, the secret sauce.
So essentially it's really about lowering the barrier for entry for software developers to build an application faster and much more scalable.
And also make it global so we cover the whole world in terms of our communication.
We have customers all over the world from Asia Pacific, Europe and the US, and we enable them to connect with our customers and the users across the globe while providing the high quality of service which we believe will be improved working with the industrial scale voice platform and infrastructure that voice can provide us.
Just to answer your question on EBITDA.
Quickly, as we talked about in the past we will be break even to slightly negative.
Again, this is allocated EBITDA we are a functional organization.
So it's not the way we run the business or report the business for that reason.
But we are targeting as we think about it, at some point, more than half of our business and running consumer solely for cash flow.
Our target is to get to a 20% EBITDA margin in business in 2020, and to have a ramp between this year, 0 to slightly negative.
That's fairly a step function although, I'm sure it will tend to be chunky, but that's our target and I think that type of ramp makes sense.
<UNK>, do you want to take that.
Much of it will be deployed this year.
Many of these are large enough that it will be over this year, past this year.
We are pretty confident in that dynamic.
Consistent with the comments before, I don't see us being over three times for any sustained period of time.
We go above three times to make an acquisition.
I think we would, if it were compelling enough, but I think we get back down below three times relatively quickly.
And our models show that we do pay down the debt that we are taking on by Nexmo but also future debt that's available to us just through the consumer business.
In terms of the long-term target, we are not there yet.
It is really much more about feeding the strategy at this point and making sure we are facilitating that but, again, I don't see us having a target above three and it's probably in the low two range on a steady state basis.
Sure.
Yes, so we have got $100 million four-year program that was authorized at the start of 2015.
So it runs through 2018.
To date we brought back $26 million.
So roughly a quarter of that over the course of five quarters.
So we are relatively close to the pace of the authorized buy back.
As we said in my prepared statements, I think we continue to think about the buy backs as a very flexible tool that has been deployed in a successful or accretive way and that's how we look at it going forward.
I would say, just putting that together with the answer to <UNK>'s question, we are going to have, upwards of $350 million of gross debt post this trans.
So we have also got a leg of the stool, which is managing our balance sheet.
So we need to balance those things, but the buy back is still authorized, there's still plenty of head room there and plenty of time on the authorization so management can still use it as a tool.
We are always assessing different strategies and I think willing to be creative.
We have not used a buy back as a trading strategy to date.
It's been more about capital allocation and balancing that with leverage management.
We are always getting pitched on various strategies from banks and we are willing to look at them where they make sense and don't create too much complexion.
I think the practical reality is that we will slow down, simply because of just the digestion issues.
Nexmo is the largest size acquisition that we have done both in terms of revenue and absolute dollar size.
We expect to have more liquidity through this going back into the bank market, but we don't know that.
And as I mentioned to an earlier question, we filled out strategically all the piece parts and so now I think of it in a very opportunistic way, more tactically, if I'm trying to move into a given market and there's an opportunity to buy a local sales force or BroadSoft service provider.
In a sense I think it as an inexpensive and quick way to get into the market and have customer acquisition costs, then we might do it.
But we think about it in a tactical opportunist way.
Sure.
So yes, we will inherit NOLs and that will add to our NOL balance.
The Company does not use much CapEx so EBITDA really is free cash flow and I think in terms of looking forward we are not yet in a position to guide on that.
But, we are talking about very small numbers to the extent that it's negative this year and then I think we will calibrate how much stepping on the gas we want to do once we own the Company.
We are still working through that exact calculation.
You can see in the slide, this was a small company, not too many years ago.
So you can get a sense there.
So they were generating losses like any start-up, but, yes, we are not yet in a position to quantify that.
Great.
Thanks, Sonia.
We appreciate everyone's time today and we look forward to speaking and seeing everyone throughout the quarter.
Thank you.
