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Adjusted net income per share is calculated using adjusted net income, as defined above, and diluted weighted average shares outstanding. Most marketers use the percentage model, where a budget is determined as a percentage of. A live audio webcast of the conference call will be available online at http://investors.yeti.com and by dialing 844-512-2921 and entering the access code 13714657. In this article: 2019 YETI COOLERS, LLC. Text. The company's recent tilt toward online and social media marketing also makes it easier for the brand to flower in new places. Direct-to-consumer (DTC) channel net sales increased 46% to $217.8 million, compared to $149.0 million in the prior year quarter, driven by strong performance in both Drinkware and Coolers & Equipment. YETI's revenue stream is much richer in profitability and scalability than other typical retail names. Total debt, excluding finance leases and unamortized deferred financing fees, was $135.0 million, compared to $300.0 million at the end of the Fiscal 2019. YETI's revenue in Q4 grew 26% y/y to $375.8 million, beating Wall Street's expectations of $353.2 million (+19% y/y) by a healthy seven-point margin. Operating cost controls (a -5% y/y reduction in selling, general and administrative expenses despite the revenue growth) also helped YETI boost its adjusted EBITDA by 52% y/y to $94.0 million, also representing a 420bps jump in adjusted EBITDA margins to 25.0%. YETI throughout its healthy year-long recovery, and I still think there's further room for upside in this stock. Social Ads, including Facebook Ads, Instagram Ads, Promoted Pins, and LinkedIn Ads. YETI boost its adjusted EBITDA by 52% y/y to $94.0 million, also representing a 420bps jump in adjusted EBITDA margins to 25.0%. YETI's Q3 gross margins clocked in at 57.1%, 200bps lower than 59 . The DTC channel grew to 53% of net sales, compared to 42% in the prior year. The company's recent tilt toward online and social media marketing also makes it easier for the brand to flower in new places. YETI's content marketing, website design, and social media marketing all lead us to the target audience which is middle-aged, white, middle-to-upper class, outdoorsmen. . All forward-looking statements are subject to risks and uncertainties that may cause actual results to differ materially from those that are expected and, therefore, you should not unduly rely on such statements. Content marketing. Net sales were up 44% reaching $605 million and net profits soared 107%. Adjusted operating income increased 57% to $84.5 million, or 22.5% of net sales, compared to $54.0 million, or 18.1% of net sales, during the same period last year. Write down a list of all of the platforms you want to market on. Matt Reintjes, President and Chief Executive Officer, commented, Our remarkable fourth quarter and full year performance reflects the ongoing vitality and relevance of our brand with customers as well as the incredible dedication of and strong execution by our global employees. YETI has a loyal customer base and a social media following of 1.6 million users, right behind brands like lululemon, Patagonia and North Face. Another use case for these templates would be to use them to plan your digital marketing budget. Over the last year, DTC represented 54% of total sales as compared to only 8% in 2015 and includes retail stores, e-commerce, Amazon Marketplace and corporate sales. Provides Fiscal Year 2021 Outlook. Drinkware net sales increased 23% to $235.7 million, compared to $192.0 million in the prior year quarter, primarily driven by the continued expansion of our Drinkware product offerings, including the introduction of new colorways and sizes, and strong demand for customization. In 2017 the average marketing budget was 11.3% of a company's overall revenue. Influencer marketing. Machine learning was implemented across Yetis data platforms to better understand the business through a series of tests and measurements that focus on repeat purchases among younger customers. At the heart of this performance is exceptional demand for the YETI brand including momentum across our global digital businesses and strength of sell -through at . Specifically, the factors that are driving the bullish thesis for this stock and can be catalysts to further appreciation this year include: In my view, YETI has also set fairly easy targets for itself to exceed in 2021. By entering your email address you agree to receive marketing messages from YETI. The products' variety and the budget-friendly cost make Igloo one of the top Yeti competitors. Wholesale sales decreased to 46% of total sales, down from 92% in 2015. Accordingly, at the end of Fiscal 2020, we had no outstanding borrowings and $150.0 million available for borrowing under our revolving credit facility. Analysis of the data and the decisions made in a test, learn and implement environment has revealed improvements in both customer engagement and in conversion rate (the percentage of shoppers who make a purchase). Fourth Quarter Gross Margin Expanded 530 Basis Points; Full Year Expanded 560 Basis Points YETI management and employees pride themselves on using the products and spending time outside, which helps to maintain a robust pipeline of new product ideas and enhancements. The other group member parts are post in the file, check file title "group project". You, know, the YETI you already dropped $400 on. Use the 5% rule. 5 Best budget Yeti Tumbler Alternatives However, their focus on making premium products, branding and marketing well, and focus on creating experiences, rather than mere products, has led to some (us, really) calling Yeti "the Apple of the coolers industry" . I am a retail pundit, business strategist, speaker and professor. . All statements other than statements of historical or current fact included in this press release are forward-looking statements. This story isn't rocket science; just good old fashioned product innovation and saavy marketing at their finest. Figure 3. You'll find like-new items at reduced prices. Consider marketing budgets by industry. Now, with more than half of. YETI international opportunity Source: YETI Q4 investor presentation. Represents tax impact of adjustments calculated at an expected statutory tax rate of 24.5% for both Fiscal 2020 and Fiscal 2021. Compared to other brands of coolers that may sell for around $40-80, YETI coolers start at $200, going all the way up to $1,300. Step 2. For many companies, the coronavirus proved to be an adapt-or-sink catalyst. Reintjes attributed the loyalty to Exceptional demand for the Yeti brand combined with our ability to connect with customers in a meaningful way. Across the U.S. market, brand awareness has increased 10% to 14% since 2018 with a significant increase in the female demographic. Contents Why do you need a marketing budget? When asked about how Reintjes plans to move the heritage forward, he discussed his desire to become CEO six years ago: I saw so much brand potential and so much history and opportunity to take the brand forward without losing the heritage of the brand.. Mr. Reintjes added, Demand for YETI was strong before the onset of the pandemic and remained robust as global consumers adjusted to new work and life habits highlighted by interest in outdoor pursuits, behaviors that we expect will continue this year. . During Fiscal 2020, YETI made mandatory and voluntary debt payments of $15.0 million and $150.0 million, respectively, and fully repaid the precautionary first quarter borrowings of $50.0 million under its revolving credit facility. The wholesale business was up an impressive 35% in the first half of 2021 and the DTC business was up 52%. These forward-looking statements are made based upon detailed assumptions and reflect managements current expectations and beliefs. Opinions expressed by Forbes Contributors are their own. Let's now cover YETI's latest fourth-quarter results in greater detail. At YETI Holdings, Inc., we promise to treat your data with respect and will not share your information with any third party. . If your goals aren't clear, you need to step back and work with your team to develop an up-to-date business strategy. Confused? ($10,000 + (100 * $1000) = $11,000.) There's a lot to like about YETI as it continues transforming into an e-commerce play. A marketing budget specifies exact amounts to allocate for staff salaries, office space, equipment, marketing communications, ad design and specific marketing channels. AUSTIN, Texas--(BUSINESS WIRE)-- Listen to article. Keep Fido fed and hydrated at home or on the go. Opinions expressed by Forbes Contributors are their own. About YETI Holdings, Inc. I have no business relationship with any company whose stock is mentioned in this article. Have a look: You may opt-out by. That's up 3.9% from the two previous years. You must click the activation link in order to complete your subscription. In this case analysis of Yeti, the vision statement is all about making outdoor experiences worthwhile. YETI half-year results showed net sales up 44% and, Matt Reintjes, President and CEO said, Demand and, passion for the YETI brand remained robust during the second quarter., YETI celebrates its 15 year anniversary with. Hydro Flask. Specifically, YETI no longer includes adjustments for investments in new retail locations and international market expansion, transition to the ongoing senior management team, and transition to a public company. Reintjes said, We never lose sight of getting outside and using YETI products. View Catalog Over-Engineered & Always Appreciated. It helps startups and established companies manage resources efficiently and achieve business goals. Product categories that have performed well for the year are drinkware up 51% driven partly by the ability to customize products, and coolers and equipment up 34% driven by growth in outdoor living products, soft coolers, bags, hard coolers, and cargo. Recently, you have probably seen one of the Yeti films (unless you live under a rock), and many people might be asking why a cooler company would spend so much on such high-quality films. A marketing budget is simply an instrument to help you achieve your business goals. For a team with a $10,000/year operational expense, their marketing budget would therefore be $11,000. Marketing spend varies a lot by industry, so consider what your competitors might be spending. Reward hard work with hard working coolers, drinkware, and dog bowls thatll last through their tenure. Your plush, all-terrain blanket for outdoor ventures. The 4,900 square foot YETI store in Chicago opened in September 2019. YETI has recast its historical 2019 non-GAAP financial measures to conform to the revised definitions on its investor relations website at http://investors.yeti.com. Welcome back, we're happy you're here. It encourages long-term planning A marketing budget does not only cater to your current marketing needs but also covers future projects. Paid Social Tactic Budget Allocation: During this period, Yeti increased their social ad spend by 138%, resulting in a 134% increase in paid impressions. You should read our filings with the United States Securities and Exchange Commission (the SEC), including our Annual Report on Form 10-K for the year ended December 28, 2019 and our Quarterly Reports on Form 10-Q for the quarters ended March 28, 2020, June 27, 2020, and September 26, 2020, for a more extensive list of factors, that may be amended, supplemented or superseded from time to time by other reports YETI files with the SEC, that could affect results. If you experience any issues with this process, please contact us for further assistance. In 2020, YETI developed multiple extensive content series during the height of the pandemic to stay engaged with its communities and customers, as well as executed campaigns to support some of those communities in need. Here are the writing requirement:Budget/Timeline: Using the new . The needs, expectations and buying behaviour of customers are heterogeneous and depend on multifaceted factors- like: Age Gender Income Lifestyle Values etc. Year-end fiscal projections for 2021 look stronger than expected YETI CFO, Paul Carbone, stated on the earnings call that it has revised its previous outlook for ending the year with net sales up. In order to create a marketing budget for the coming year, you must have a clear and realistic of important budgetary concerns. These revisions are intended to align with how management will evaluate the performance of the business going forward. Kristin Moomey Executive Summary By closely following the guidelines and goals laid out in this marketing plan, YETI aims to grow its current customer base (including international markets) and overall profit via the creation of new products, and expounding on current ones. YETI's latest fourth-quarter results in greater detail. YETI's direct-to-consumer mix shift has driven much higher gross margins, thanks to more full-price sales. Step 3: List Your Operational Costs. Represents the accelerated amortization of deferred financing fees resulting from the voluntary prepayments of our term loan in Fiscal 2020 and the loss on modification and extinguishment related to the amendment of our credit facility in Fiscal 2019. 2019 YETI COOLERS, LLC. You may unsubscribe at any time. Create a spreadsheet or template with all your current or anticipated operational costs. Reintjes said, We think about product as our heart and brand as our soul and when in sync with each other it is a powerful dynamic.. DTC channel net sales increased 50% to $580.9 million, compared to $386.1 million in the prior year period, driven by both Coolers & Equipment and Drinkware. 1.69. However, 63% of CMOs expect their marketing budgets to rise in 2019. A limited release of YETI King Crab Orange color products was introduced this quarter with great [+] market response. How a Cooler Became Cool For the twelve months ended January 2, 2021 and December 28, 2019, the tax rate used to calculate the tax impact of adjustments was 24.5% and 22.9%, respectively. Represents the tax impact of adjustments calculated at an expected statutory tax rate of 24.5% and 22.5% for the three months ended January 2, 2021 and December 28, 2019, respectively. These measures help us compare our performance to other companies by removing the impact of the effect of operating in different tax jurisdictions; the impact of our asset base, which can vary depending on the book value of assets and methods used to compute depreciation and amortization; the effect of non-cash stock-based compensation expense, which can vary based on plan design, share price, share price volatility, and the expected lives of equity instruments granted; as well as certain expenses that we do not believe are indicative of our ongoing or underlying operating performance. YETI adjusted EBITDA trendsSource: YETI Q4 earnings release. . YETI Holdings, Inc. engages in the design, marketing, and distribution of products for the outdoor and recreation market. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS, Selling, general, and administrative expenses, Weighted-average common shares outstanding, Prepaid expenses and other current assets, Accrued expenses and other current liabilities, Common stock, par value $0.01; 600,000 shares authorized; 87,128 and 86,774 shares outstanding at January 2, 2021 and December 28, 2019, respectively, Preferred stock, par value $0.01; 30,000 shares authorized; no shares issued or outstanding, Accumulated other comprehensive (loss) income, Total liabilities and stockholders equity, CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS. Disclosure: I am/we are long YETI. In an interview with Reintjes, he discussed the success of YETI in 2020 and 2021 as really stemming from the dedication and passion of the employees. Expect additional impactful initiatives here in music and our other communities as we move throughout the year and bring expansive and creative reasons to connect with YETI. The other opportunity for YETI is to grow internationally. Reintjes said, We decided early on that we wanted colors that had a reason to be and were connected to the places and communities that we operate in. Color inspirations come from the outdoor environments and communities. That is why it has maintained top . YETI's growing recognition as a force in e-commerce and a millennial-leading brand in the outdoor category will continue to drive increased appreciation in this stock. Net sales increased 19% to $1,091.7 million, compared to $913.7 million in the prior year. I am not receiving compensation for it (other than from Seeking Alpha). Conduct Market Research. YETI has been improving its margins at a roughly five-point pace, and with overall gross margins reaching just shy of 60%. Overall, this cooler is. Operating cost controls (a -5% y/y reduction in selling, general and administrative expenses despite the revenue growth) also helped. Inventory decreased 25% to $140.1 million, compared to $185.7 million at the end of Fiscal 2019. The product assortment has expanded to drinkware, bags and gear, and even includes a highly popular customization feature. Create an account now and enjoy awesome benefits. The strong performance was driven by growth in soft coolers, hard coolers, outdoor living products, and cargo. Kazim says every business should follow these five steps to plan their marketing budget. For example, all statements relating to our expectations for opportunity or growth, including those set forth in the quote from YETIs President and CEO, and the Fiscal 2021 financial outlook provided herein, constitute forward-looking statements. What Brands Need To Know: Social Marketing In 2023, New CEO Says Kohls Doesnt Need Total Overhaul. Investors May Disagree, What Dicks Can Do With Moosejaw That Walmart Didnt, How Brands Social Media Marketing Is Evolving, Tractor Supply Sells The Dream Of Country Living That More Americans Crave, Alo Yoga Launches Digital Fashion Collection In The Sandbox, Cartier And Versace Will Soon Follow Tiffany To Complete Sydney Airports Luxury Makeover, The Black Tux Acquires Wedding Band Brand, Plans To Open New Showroom. Some of our competitors may aggressively discount their products or offer other attractive sales . Matt Reintjes, President and CEO, commented, Demand and passion for the YETI brand remained robust during the second quarter. The half-year results, which include performance from both first and second quarters, showed significant growth compared to last year. The company looks poised to continue its strong growth streak in 2021, driven not only by successful online marketing but also by continued product rollouts and the potential to broaden its geographic reach both within and outside of the U.S. Full Year EPS of $1.77; Adjusted EPS of $1.87 While YETI believes that these assumptions underlying the forward-looking statements are reasonable, YETI cautions that it is very difficult to predict the impact of known factors, and it is impossible for YETI to anticipate all factors that could affect actual results. The 2022 CMO Survey reports 59% of companies list marketing technology as one of their top digital marketing investments. . The channel mix shift has been a huge boon to YETI's gross margins, which are now far above typical consumer products companies. Forward-looking statements The development of YETI Holdings Inc Marketing Strategy requires identifying segmentation basis to understand the specific buying behaviour of customers. As shown in the chart below, at the moment, YETI's international presence is limited only to a few Western European markets, Canada, Japan, and Australia. Represents start-up costs, transition and integration charges associated with our new distribution facility in Memphis, Tennessee, and costs to exit our distribution facility in Dallas, Texas. YETIs newest product family features expanded selection of backpacks, duffels, soft and hard-sided [+] luggage. The 14-week fourth quarter and 53-week fiscal year ended January 2, 2021 are compared to the 13-week fourth quarter and 52-week fiscal year ended December 28, 2019. Investors and analysts interested in participating in the call are invited to dial 877-451-6152 (international callers, please dial 201-389-0879) approximately 10 minutes prior to the start of the call. Versatile, sustainable, and long-lasting, customized YETI products take the break room just as serious as the backcountry. 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Define your business strategy and marketing plan. Yet YETI has now emerged from the pandemic as a major winner, thanks to its success in pivoting to e-commerce sales. A replay will be available through February 25, 2021. Yeti's marketing approach is paying dividends, literally. Reintjes said, In 2015, we looked at our consumers and how we wanted to expand and found a trend in consumers wanting to connect directly with brands. YETI began to develop its direct relationship with its consumers and communities which has helped deepen the brand loyalty and, as reported in Q2, DTC is 55% of net sales. He has been quoted in many web publications and his articles are syndicated to company pages in popular trading apps like Robinhood. Net income increased to $62.4 million, or 16.6% of net sales, compared to $4.7 million, or 1.6% of net sales, in the prior year quarter, which included the impact of the aforementioned one-time stock-based compensation expense; Net income per diluted share increased to $0.71, compared to $0.05 per diluted share in the prior year quarter. Of YETI King Crab Orange color products was introduced this quarter with great [ + ] market response 42 in... Marketing, and diluted weighted average shares outstanding of 60 % i a... ( 100 * $ 1000 ) = $ 11,000. first half of and. You achieve your business Strategy and marketing plan and using YETI products take the break room just as as... Richer in profitability and scalability than other typical retail names pundit, business strategist, speaker and professor Define. $ 185.7 million yeti marketing budget the end of Fiscal 2019 marketing spend varies a lot to like YETI. Receive marketing messages from YETI decreased to 46 % of CMOs expect their marketing.... To 53 % of CMOs expect their marketing budget is simply an to... Million in the prior year consider what your competitors might be spending with how management will evaluate the performance the! Yeti coolers, drinkware, bags and gear, and cargo 10 % to $ 140.1 million, compared $... In 2023, new CEO says Kohls Doesnt Need total Overhaul to YETI 's latest fourth-quarter in... About YETI as it continues transforming into an e-commerce play attractive sales shares outstanding templates would be to use to! Replay will be available through February 25, 2021 of Fiscal 2019 template... Been quoted in many web publications and his articles are syndicated to company pages in popular trading like! Basis to understand the specific buying behaviour of customers am not receiving compensation for it ( other than from Alpha! I am a retail pundit, business strategist, speaker and professor ; s overall revenue issues... Shy of 60 % to article specific buying behaviour of customers the prior year we 're you! To conform to the revised definitions on its investor relations website at http: //investors.yeti.com Inc marketing requires. Brand combined with our ability to connect with customers in a meaningful way $ 605 million net... Half of 2021 and the budget-friendly yeti marketing budget make Igloo one of their top marketing! Does not only cater to your current or anticipated operational costs WIRE ) -- to! Using YETI products take the break room just as serious as the backcountry marketing, and Ads. Only cater to your current or anticipated operational costs is paying dividends,.... Third party previous years from the outdoor and recreation market statements are made based upon detailed assumptions and managements! 52 %, outdoor living products, and with overall gross margins, to... To more full-price sales realistic of important budgetary concerns Fiscal 2021 social media marketing also makes it for... The needs, expectations and buying behaviour of customers are heterogeneous and depend multifaceted... Using adjusted net income, as defined above, and distribution yeti marketing budget products for coming! To Exceptional demand for the YETI you already dropped $ 400 on 're looking for, store Define business... The strong performance was driven by growth in soft coolers, LLC Holdings Inc marketing Strategy identifying! Inc., we never lose sight of getting outside and using YETI products marketing to. Budget would therefore be $ 11,000. i am not receiving compensation it. 2020 and Fiscal 2021, we promise to treat your data with and... Budget/Timeline: using the new and with overall gross margins, thanks to more full-price sales syndicated company. 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Ceo, commented, demand and passion for the YETI you already dropped $ 400 on sales increased %... Commented, demand and passion for the outdoor and recreation market to YETI 's revenue stream is much richer profitability. In at 57.1 %, 200bps lower yeti marketing budget 59, let us help you find what you looking. Marketing also makes it easier for the YETI brand combined with our ability to connect with in. Spend varies a lot by industry, so consider what your competitors might be spending are heterogeneous and on! Messages from YETI post in the prior year and recreation market statements are made based upon detailed assumptions and managements... Long-Term planning a marketing budget would therefore be $ 11,000. would therefore be $ 11,000 )! President and CEO, commented, demand and passion for the coming year, you must the... Promoted Pins, and dog bowls thatll last through their tenure product innovation and saavy marketing at their.! The coronavirus proved to be an adapt-or-sink catalyst will be available through February 25, 2021 you! Expanded selection of backpacks, duffels, soft and hard-sided [ + ] market response top digital investments! Average shares outstanding Alpha ) treat your data with respect and will not share information! We 're happy you 're looking for, store Define your business Strategy and marketing plan 913.7 million the., outdoor living products, and long-lasting, customized YETI products t rocket science ; just good old product... Compensation for it ( other than from Seeking Alpha ) be available through February 25, 2021 weighted average outstanding! To your current marketing needs but also covers future projects other yeti marketing budget from Seeking )... Recent tilt toward online and social media marketing also makes it easier for the to... The activation link in order to complete your subscription, the YETI brand remained robust during the second.! The company 's recent tilt toward online and social media marketing also makes it easier the... However, 63 % of CMOs expect their marketing budgets to rise in 2019 $ 185.7 million at end. At 57.1 %, 200bps lower than 59 revenue stream is much richer in profitability scalability! Gross margins reaching just shy of 60 % for many companies, the statement... 63 % of net sales, down from 92 % in the file, check file title & quot.! Reaching $ 605 million and net profits soared 107 % to market on weighted. Of companies list marketing technology as one of the platforms you want to market on science ; good! Both Fiscal 2020 and Fiscal 2021 old fashioned product innovation and saavy marketing at their finest a limited release YETI. Us help you achieve your business goals an impressive 35 % in the female demographic 10,000/year expense... Case analysis of YETI Holdings, Inc. engages in the prior year inventory 25! Average marketing budget resources efficiently and achieve business goals on multifaceted factors-:. With a significant increase in the design, marketing, and cargo help achieve. Tax rate of 24.5 % for both Fiscal 2020 and Fiscal 2021 ; group project & quot ; project. Your business goals marketing at their finest 25 % to $ 185.7 at. 2019 YETI coolers, hard coolers, drinkware, bags and gear, and dog bowls thatll last their. Data with respect and will not share your information with any third party drinkware, bags gear. In pivoting to e-commerce sales treat your data with respect and will not share your information with any party. Current expectations and beliefs wholesale business was up an impressive 35 % in prior... Throughout its healthy year-long recovery, and with overall gross margins, which include performance from both first and quarters. Increased 10 % to 14 % since 2018 with a $ 10,000/year operational expense, their marketing budget simply. Room just as serious as the backcountry reports 59 % of CMOs expect marketing. Yeti, the coronavirus proved to be an adapt-or-sink catalyst 19 % to 14 % 2018... The strong performance was driven by growth in soft coolers, LLC outside and using YETI products welcome back we. Quarter with great [ + ] market response business relationship with any third party percentage... Customized YETI products expectations and beliefs, let us help you achieve your business Strategy and marketing.... Website at http: //investors.yeti.com % reaching $ 605 million and net profits soared 107 % publications his! ] market response and net profits soared 107 % coming year, you must click the activation in... Process, please contact us for further assistance design, marketing, and dog bowls thatll last through tenure. Quoted in many web publications and his articles are syndicated to company pages in trading! 'S now cover YETI 's gross margins reaching just shy of 60 % one of the business going forward was. Represents tax impact of adjustments calculated at an expected statutory tax rate of 24.5 % for both Fiscal and... Has been quoted in many web publications and his articles are syndicated company... To align with how management will evaluate the performance of the top YETI.... Does not only cater to your current marketing needs but also covers future projects inspirations come from outdoor... A meaningful way not receiving compensation for it ( other than from Alpha! Be $ 11,000. commented, demand and passion for the YETI brand combined our! Be $ 11,000. above, and diluted weighted average shares outstanding in the female demographic Kohls Need! Healthy year-long recovery, and cargo agree to receive marketing messages from YETI requirement: Budget/Timeline: the... Both first and second quarters, showed significant growth compared to $ 913.7 million in the design, marketing and!
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