Amagi Media Labs Limited (AMAGI) Earnings Call Transcript & Summary

Ladies and gentlemen, good day, and welcome to the Amagi Media Labs Limited Q3 and 9 Months FY '26 Earnings Conference Call. This conference call may contain forward-looking statements about the company, which are based on the beliefs, opinions and expectations of the company as on date of this call. These statements are not the guarantees of future performance and involve risks and uncertainties that are difficult to predict. [Operator Instructions] Please note that this conference is being recorded. I would now like to hand the conference over to Mr. Baskar Subramanian, the Managing Director and CEO, for the opening remarks. Thank you, and over to you, sir.

Hi, everybody. This is Baskar, Co-Founder, Managing Director and CEO of Amagi. And I have Vijay, our CFO, as well in the same call. We are extremely excited to have you all as part of this today's morning presentation about our first quarterly results post IPO. Thank you very much for joining us. So we would like to start with a small presentation for all of you. If you go to our website, you would see an investor presentation as part of the Investor Relationship website, web link that you would see there. I would urge you to download that, the Q3 one, which we can download there. And we intend to kind of walk you through that from an introduction of the company standpoint. So we'll do that right now. If you look at it -- if you go to Slide #2 of our presentation, I wanted to introduce Amagi. Amagi is a media technology software company, primarily working with TV channels, content creators, studios, news, sports producers across the globe. So that's our primary market that we really work with today. Amagi's fundamental value that we add is to provide a single software platform on cloud infrastructure, which covers what we call glass to glass. starting from the camera screen -- camera to the final screen where consumers watch content, we provide an end-to-end capability for our customers. So this is primarily a B2B, a business-to-business business that we do today. And all of this is running on a public cloud software. And we start going for anywhere from production until the point of viewership of a customer, we pretty much manage all the software on the cloud. That's what we do as a company. And if you look at it, primarily, we simplify the complexity for our customers in terms of running all their operations on a cloud instead of a hardware base of how to look at things, right? Now I'm extremely excited because this is something that we started 10 years back as a journey in terms of building a new cloud vision, and this has kind of come to fruition. In fact, we operated the Super Bowl just about 72 hours back for all of the U.S. was watching content through an Amagi's infrastructure. Super Bowl is like the IPL finals for us, which is the NFL football league in the U.S. that we actually operated. As we speak, Winter Olympics is happening on Amagi's Infrastructure. We do the Grammys. So we continue to do some of the marquee live events and live news content across all of the U.S. today, and we continue to expand this in Europe and in the Asia Pac region as well. So that's the primary work that we do as a company. Going to Slide #3, just to give you context of how we look at our business. We segment our business into 3 units. The first one is called Cloud Modernization. This is essentially -- because this business is all about customers, TV channels who are actually moving their existing on-prem infrastructure, which is all in hardware, data centers, people and real estate to a complete software environment, which is what we do today with a lot of the large TV networks worldwide. So that's our first part of the business, what we call Cloud Modernization. The second part is what we call Streaming Unification, essentially where we enable our customers to distribute their content worldwide. The third part is we enable what's called monetization, essentially enable our customers to make money through advertising. We don't participate in the advertising ecosystem. We are not an ad network, but we enable technologies which allow our customers to connect with ad networks and make money in the process. So our business is always -- this is the way we report our financials as well. You will see it as we move forward on this front. If you go to Slide #4, the biggest -- I think the biggest growth area going forward and the biggest investments we're making as a company is in AI. And I'm sure every company today is transforming, and this is a big transformation happening in the media business as well, right? Media is going through one of the biggest transformation and AI is going to be a big, big lever for that. What we see is the fundamental value for us at Amagi because we are a platform for our customers, we have a significant opportunity to go solve the cost of human cost in terms of productivity improvements that we can provide. And that is going to be the biggest opportunity for us. Amagi is already investing in an end-to-end capability, and we are in discussions with multiple customers. We are design partners and proof of concept starting to happen in our business already. So we are very, very excited about the whole AI opportunity in front of us, and this will be a significant opportunity for us from a TAM standpoint as well going forward. If you look at the market itself, the market that we play today is the television market, where when we talk about TV, we talk about both traditional television transforming as well as the streaming television, which is a big part of what Amagi does today, for example. The biggest tailwind of this business for us is that only 10% of the TV channels have moved to the cloud. All others are in hardware, and there are billions of dollars. If you look at it, almost $16.9 billion of TAM is today sitting a large part in hardware. Only 10% has moved to the cloud, and we see a significant opportunity going forward as the 10% moves towards the 100% over time. And that's the biggest opportunity that we're really following through today. And this would be the biggest tailwind for us as a company going forward, and that's the future that we see for ourselves. If you look at it, our customers are content creators. So what do they do? They take the content, drive this content, and they want to take this content to as many people worldwide. So it's a global business. So they want to take their content globally worldwide. They want to distribute to as many places. Once they distribute it, more viewers watch their content, more advertising or subscription revenue that they can make, which in turn drives more content. This is the flywheel of our customers. And we're extremely fortunate at Amagi that we provide an end-to-end capability for our customers starting from taking their content into our systems till the point of enabling them to make money through the monetization efforts that we provide. If you look at it, these are the Northstar metrics that we track as a company. If you look at the content that's coming into Amagi system, it's continuing to grow. We have 800,000 hours. There is 8 lakh hours of content that's coming into the system which is almost 64% year-on-year growth that we've seen in this whole thing. Which essentially tells you that more content that people -- customers are trusting us with more and more content, which drives the larger part of the business. But a very -- it's a leading indicator fundamentally for us to kind of track internally. We are reaching more places in terms of deliveries that we are delivering today with about 9,000-plus deliveries that we're doing. We are actually getting to distribute in 408 locations and platforms that we actually distribute today worldwide in about 40-plus countries, and we continue to do that. And if you look at the ad impressions that we have delivered, we have delivered almost close to 13 billion impressions over the last quarter, which is almost 60% growth year-on-year. All in all, directionally, the numbers look good for us, and we are very happy with where we are from a number standpoint and what we see going forward as well. So for next slide on Slide #7, I'll ask Vijay, our CFO, to provide a commentary on how the financials existed in this particular quarter and what we see going forward as well.

Thanks, Baskar. Good morning, everyone. This is Vijay. Like Baskar highlighted, we had some leading sort of indicators that were pretty healthy. Now we are going to talk you through how these manifested in our financials. So I'll start off with revenue, then move to margins and wrap with cash. So on Page 7, if you look at the graphs on the left side, for the first 9 months of FY '26, revenue grew 30% year-over-year to INR 1,109 crores. In Q3, revenue increased 22% to INR 404 crores. We saw pretty much secular broad-based growth across all the 3 segments that Baskar highlighted a few slides back. Just want to highlight a couple of call outs with respect to Q3 growth. One is that the quarter benefits from seasonal strength given holiday advertising flows. And two is on Q3 year-over-year growth due to accounting recognition, revenue from one of our top 5 customers was fully recognized in the first half of FY '26, whereas in FY '25, it was spread across all 4 quarters. Because of this, first half of FY '26 looks stronger, while Q3 and Q4 growth rates will appear softer. This is just a timing impact and does not change our full year revenue and demand, right? So overall, good story on revenue. Turning to the costs on the right side of the page. We've got 3 primary cost buckets: Employee Costs, Communication Costs and other Operating Expenses. Communication Costs primarily reflect cloud infrastructure as our software runs on public cloud platforms and is largely linked to revenue or scales linearly to revenue. Employee and most of the costs are fixed or semi-fixed in total, right? So in total, approximately 2/3 of our cost base does not scale linearly with revenue. This structure kind of allows revenue to grow faster than total cost. So for the first 9 months, if you look at it, our operating costs grew 17% against a 30% revenue growth. And in Q3, costs increased only 14% versus a 22% revenue growth, right? So the key takeaway on this slide is that revenue growth remains strong and broad-based, while costs are growing at roughly half that rate. So that difference, as you all know, is the operating leverage that we see in the business. And you'll see that manifest in some of the margin expansion that we'll highlight in the next slide. If we move on to Page 8. So this page has all the detail on the margins. As we highlighted on the previous slide, operating leverage is clearly translating into bottom line expansion. In Q3, if you look at adjusted EBITDA on the left-hand side, it doubled year-over-year to almost INR 58 crores, with margins expanding to 14.3%. For the first 9 months, EBITDA reached approximately INR 116 crores with margins at about 10.5%, reflecting sort of improved flow-through as revenue scales. At the PAT level, the progression is sort of equally visible. If you look at the right-hand side, Q3 PAT increased to INR 31 crores with margins at about 7.7%. For the 9-month period, PAT was at INR 37 crores. There were some timing and onetime items in the quarter like we discussed earlier, including the seasonal effects. If you normalize for these, we view steady-state EBITDA margins at approximately 10%, which we believe is more sort of representative indicator of the underlying profitability in the quarter. The key takeaway is that we are demonstrating that our growth model is significantly flowing through to operating leverage and is inherently sort of margin accretive, right? If you move on to the next page, let me turn to cash here. This slide sort of walks through the conversion from EBITDA to free cash flow. In Q3, adjusted EBITDA of INR 58 crores translated into an operating cash flow of INR 124 crores and a free cash flow of INR 118 crores after roughly INR 6 crores of CapEx. The conversion in the quarter was supported primarily by improved collections and a little bit of working capital normalization. For the first 9 months, operating cash flow on an underlying basis was INR 47 crores. Reported cash flow is negative INR 76 crores, primarily due to onetime IPO expenses and buyback related to ESOPs in the first half of the year. Free cash flow also was negative INR 96 crores, driven by those same onetime items that I highlighted, which impacted the first half. We ended the quarter with about INR 803 crores of cash and investments on the balance sheet. We went public in Jan, so this balance does not reflect the primary raise that we had in Jan. So to sum it all up, we had strong double-digit growth in revenue backed by expansion in margin, and that pretty much is a wrap on the financial slide. Before I hand it back to the operator, just a reminder that in our IR website under quarterly results, you'll see a shareholder letter, which has detailed sort of Q&A on each of these items, which provides a more comprehensive and holistic update. But in the interim for any live Q&A, I'm going to pass it back to the operator so that we can start queuing up the questions. So operator, back to you.

[Operator Instructions] The first question comes from the line of Vivekanand from AMBIT Capital.

I have two questions. The first one is on your customer acquisition. You have added 40-plus customers in the last year. And this seems like you have seen some growth acceleration as far as customer count is concerned. What are the factors driving customer addition acceleration during the current quarter? And how should we think about it, say, if one takes a two, three year view on customer addition? That is question one. And the second question is the gross margin that you have in this business, you commented on EBITDA margins, 10% being the number that one should look at as a guiding post. Thanks for that. Just to understand this better, how should we think about the buildup of this 10% coming in from, say, gross margin and other costs?

Thank you very much for the question. This is Baskar. I will address the first part of your question, primarily in terms of customer addition. Just to give you context, right? Again, our business is largely a vertical market business, essentially working with only the media and entertainment customers worldwide. So it's a fairly concentrated set of customer list that we really go after fundamentally. I would like to highlight a couple of things that you need to look at, right? One is if you look at it, the market transformation is starting to happen. I talked about cloud modernization, and we are seeing acceleration of that trend line of customers wanting to move to the cloud. I think that's a clear trend line that's driving some of the customer acquisitions that you are starting to see, number one. Number two, if you look at it is, obviously, streaming has become larger. We are starting to see outside of the U.S., starting to see progressions, be it in Latin America, we're seeing it in Europe and in Asia as well as we're starting to see acceleration of customers wanting to move to streaming platforms and actually starting to build their own streaming capabilities from a business standpoint. That's the second biggest leverage that we see from a market standpoint. And all of this, if you look at from an Amagi standpoint, if you look at it, our sales cost in the S&M is pretty much consistent. So we are not really dramatically -- it's not unlike a horizontal SaaS businesses. Amagi's business is a vertical business, which essentially means with the same amount of sales teams, we're able to deliver more efficiencies going forward. Why is the health of the logos important for us as we kind of move forward in terms of number of logo acquisition is if you look at it, ours is a net retention-driven business, NRR-based business. And we had actually talked about 127% NRR last half year that we actually demonstrated, and we continue to see that as an important trend line. Now as more and more customers come in, these are our foundational customers for the next 2 to 3 years for us. So the health of both we track as a company, both the NRR metric and the number of customer acquisitions that we're making, which is a good balance as we move forward to maintain our growth and profitability. That's the directional call that we take as a company. I will hand over to Vijay for providing you an EBITDA commentary on that.

Thanks, Vivek, for your question on the gross margin EBITDA. Just one clarification. The 10% is not a steady state in fullness of time. The 10% is for the 14% that you saw in the quarter, we believe if you exclude the onetime sort of tailwinds that we had, we think that the steady state for this quarter is around 10%. Now you had asked about the building blocks of where this would come from if you think about in fullness of time. If you look at vertical SaaS companies worldwide or software companies worldwide, you'd see that they operate at scale at about 25% sort of margins. And the reason they do that is because a lot of your growth is land and expand. So you get into a customer and you start growing. In our DRHP, you'll see that we have roughly 45% of the top 50 media and entertainment companies. So, we've seeded a lot of these costs, both on sales and marketing and R&D. And as these customers continue to grow and because of our NRRs being healthy, these costs don't scale linearly to revenue. So you see secular leverage across sales and marketing, R&D, which is a good chunk of your costs. And those would be the sort of two primary areas from which you'll start seeing leverage.

Okay. Understood. Just a couple of follow-up questions. Would you be able to disclose the 1 million-plus clients, which I think you had disclosed in the DRHP and any further color on the growth of the top 10 clients or, say, top 5 clients, whatever you wish to provide?

Yes. So on the $1 million annual revenue number, it's because it's an annualized revenue number, so we found it more meaningful to disclose it on an annual basis, not on a quarterly basis, and we'll be making that disclosure when we do the FY results. On greater than -- on the top 5 customers growth, it's not a specific metric that we've disclosed. And at the right time, we'll make that available, but it's suffice to say that our overall sort of Arc would be reflective of the growth that we are seeing in the top 5 or top 10 customers.

Okay. Just one small feedback. If it is possible to include some more metrics in the KPI sheet like headcount broken across, say, sales and tech and others. I think that is a metric that we would like to track on a periodic basis as well. If you can include that in your KPI disclosures. I saw the shareholder letter has an annexure KPIs. But if you can make it a bit more richer from a cost structure and productivity standpoint, it will really help us.

Feedback taken, Vivekanand. We'll see what we can do to incorporate.

The next question comes from the line of Kawaljeet Saluja from Kotak Securities.

I have a couple of questions. First is for Vijay, your revenue growth seems a little bit light. I understand the explanation that you had given. Let's say, if you had to adjust for the timing difference of revenues from your top 5 clients, what would the underlying revenue growth have been for the quarter?

I think we would be around the 25% to 30% range Kawal.

And when you try these numbers, is it on rupee or largely U.S. dollars? So let's say, if I had to just translate this into dollar numbers, what's the range that you're looking at?

This is constant currency. So I think we wouldn't see much of a departure. So 25% to 30% is a reasonable sort of ZIP code to assume for that as well.

Got that. And second question is on the customer additions seems pretty good. What is the LTV to CAC and maybe gross profit margin payback period? If you can just give a directional sense, that will be very helpful in understanding some of those aspects as well.

So Kawal, this is -- as you can imagine, we are limited by the amount of metrics we cannot disclose. But our model lends itself to scaling a good chunk with our existing customers, right? And that's why you see significant leverage, especially in sales and marketing and other costs. And given the sticky -- I'll speak about it in LTV terms and CAC terms. Our sales and marketing is the biggest area of leverage. If you look at sales and marketing expenses as a percentage of revenue, they've gone down from approximately mid-40% a couple of years back to about in the 30% range, right? So that's an area where we've seen significant leverage. On the LTV side, given our NRR, we typically -- and given the mission criticality of our platform, our logo churn is very minimal, low single digits. So those metrics are healthier than what you'd see in the sort of top quartile, but it's not a metric that we officially disclosed.

Got that. Just a couple of more questions. One is on R&D. So that's an investment which is absolutely necessary given the current pace of changes. So what would your R&D spending be as a ballpark? I know you don't disclose that in the financial numbers explicitly, but fair to just give us a directional sense of what your R&D expenses would be? And is that something which will keep on increasing? Or is that something on which you get a leverage given the investments that you've already made and help your margin expansion in the future?

Yes. So R&D is an area that will continue to get leverage, Kawal. So I think when we disclosed the first half, it was around 23.4%. I think as of December quarter, it's at about 21.8%. So we'll continue to see leverage because of our platform strategy. That said, we don't also capitalize any of our sort of AI expenses all incurred. So on one side, on the platform side, we'll be harvesting R&D that will generate leverage and hopefully fund some of these AI investments. So long-term mental model is to continue to see leverage in that area.

Okay. The final question is for Baskar. Baskar, there is a rising debate or rather not a debate. I think investors seem to be voting with their money on the future of SaaS business given the substantial progress on GenAI. Do you want to weigh in on this topic, maybe with a specific focus on the relevance of Amagi at a time when the cost of custom build applications may decline significantly?

I think, Kawal I think the first thing is I think AI, we are extremely bullish about the whole AI wave that's starting to happen. And for a couple of reasons. If you look at it, as I really point out, we are a vertical software company, where the deep understanding of the domain and the customer pain points is super critical here. So it's not a custom application software that can be vibe coded, if you will, right? So clearly, there is a lot of technology from a domain understanding standpoint. It's not -- obviously, we use a lot of our own print for code generation. But if you look at it, the key value that we see ourselves is because it's vertical, we see a huge opportunity in front of us to be able to use the platform to demonstrate more value for our customers. For example, already, our customers are starting to adopt better tool sets in terms of Agentic infrastructure and software that we are providing to them so that they are able to see much more human productivity value out of the systems. And if you historically look at the media business, it's been a very capital-intensive and more importantly, human cost-intensive business. So we see a significant opportunity in front of us to deliver better experiences for end viewers, but more importantly, better human cost productivity for our customers. And we see that as a significant opportunity in front of us, Kawal. And I truly believe this is going to be a big transformative for the media industry and for Amagi to lead that particular trend for our customers. That's the way I see it today.

The next question comes from the line of Manish Adukia from Goldman Sachs.

Congratulations on the listing. I have a few clarifications from the shareholder letter. The first one, when you talked about the negotiations that you saw with some of your largest customers, can you maybe help us understand is that in the regular course of the business where I don't know on an annual basis, et cetera, there are pricing negotiations? Or is that like one-off? And how -- and what drove these renegotiated contracts with some of your largest customers, that would be helpful if you can provide some color there.

Yes. I think I'll ask Vijay to go through the specifics. Just to give you a Manish, overall, how we see this whole thing, right? So if you look at our customer contracts, typically, it's about 3 to 5 years. So literally, predictability is kind of designed into the business, both for our customers and for us because if you look at it, lots of stuff that we do is mission-critical software. It's essentially, that drives for need for our customers to get stability and for Amagi to get stability as well. So that's the way we kind of drive these businesses today from a contract standpoint. On specifically, is there a specific thing that Vijay, you want to address on the customer?

Yes, Manish, to your question on whether it's routine, I mean, we do opportunistically evaluate customers based on their scaling and look at -- we do have the normal lapping of contract end dates. But with the top 5 customers and top 10 customers, we constantly look at our sort of concentration and then try to make sure that both from a customer obsession standpoint and a commercial sort of feasibility standpoint and balancing the two, we try to maybe sort of extend the contract for a longer duration because these are long gestation period contracts. The top 5 customers wouldn't be routine course of business. It's something that we've intentionally made a call to look at our concentration risk and derisk that a little bit. Today, it's at a good 40% for the top 10 customers. So that's a call that we intentionally make. But I mean, what we are aspiring for here is making sure that we lock in long-term secure revenue instead of short-term optics on price increases.

Right. And maybe I don't have fully got the answer to Kawal's question earlier. So did you mention that without this impact, you would have grown mid-20s on a Y-o-Y basis? Or did I miss that number?

That is correct. Yes. 25% to 27%, yes.

Understood. Very clear. And the other big on revenue that you also called out, if you can also explain that where you mentioned the timing impact from revenue for one of the largest customers. What exactly was that?

So the timing was mostly the first half, what we saw was one of our large customers, we have a perpetual license contract. There's a grandfather contract. According to Ind AS, you got to have an output method without getting into the technicalities of it. The rev rec for that is based on channel go-lives. Last year, what happened was that the channel go-live was followed a pro rata schedule through the year. So all quarters were evenly balanced. This year, it came up in a more aggressive timeline to rev rec all of the year stuff in the first half of the year. So what that meant was that the first half of the year, you had to dial down 2 to 3 points. And the Q3 and in Q4, you'd have to dial it up 3 to 4 points in order for it to kind of make sense on a total basis. Does that help?

Yes, sure. And last question on this topic. When you mentioned 14.5% reported adjusted margin versus about 10% underlying steady state, of this 430-odd basis points of the various one-offs that you called out, if you can maybe give like a qualitative pecking order of which one had the largest impact and so on?

So one was the seasonality, Manish, on the revenue side. And then we had a couple of -- I mean, you've seen our operating cash flow, our collections was pretty robust as well in Q4. So some of our reserve rates on the ECL methodology improved, but those will be sort of the 2 broad strokes and the biggest sort of tailwinds that got the 4 points delta.

And this is also the largest quarter for us, Manish, in terms of -- because it's the festive quarter across the globe. I think given some parts of the business, which gets a tailwind from advertising, so this becomes a bigger quarter for us as a company.

Got it. Very clear. The next question I had was on managed services. If you can just maybe give us a rough sense of what proportion of your revenue now is managed services? And maybe for the benefit of the broader audience on the call, if you can help us or remind us how is your managed services may be different versus what typical services companies do?

Okay. Maybe I'll give a color to the whole thing and maybe we can give you specifics. But Manish, largely, if you look at it, we are a technology company. So essentially, given our customer cohorts who are large enterprise to mid-tier enterprise customers who need it, we provide a thin layer of the service, which is really literally a very, very small percentage point, but I don't think we disclose that number, but it's actually not even meaningful from a number standpoint. This is essentially an idea is to kind of provide some sort of a human layer for them to kind of have because there are hundreds of millions of dollars of content passing through the system. So we need to be able to provide them some sort of a 24/7 capability so that they can feel comfortable because our SLAs are sometimes 99.99 to 99.9999, right? So almost like 6 9's liability, for example. So to manage that is a very, very thin layer. It's extremely -- I don't think we can be tracking internally in terms of the percentage because it's too small.

Manish, just to add, obviously, low single digits to Baskar's point, but this is an area, given our cloud modernization segment and the runway that we see that, this is an area where with the help of AI, we see some of the biggest sort of opportunity as well. And so what is ahead is much larger than what we have today.

Very clear. Just last question, would you be able to give any kind of, let's say, forward, if not guidance, aspiration of what next 3-year revenue CAGR may look like for the business? And where do you think margins may settle over, let's say, a 3-year period at EBITDA margin level?

Manish, it's -- I'm sure you'd appreciate that it's hard to give prescriptive guidance at this point. But our endeavor would be to kind of consistently deliver the growth rates that we've delivered over the last couple of years and replicate the margin trajectory that we've seen over the last couple of years and over the next 2 to 3 years as well.

The next question comes from the line of Omprakash Kavadi from Avendus Spark.

Congratulations to the management team for the public market debate and good luck for your future in this journey. A couple of questions. Firstly, on the market. So if you just step back and then see how Amagi is positioned in the market with respect to the 3 segments, the cloud modernization, streaming and monetization, could you give me some color on how the market share has been for Amagi in the recent years? And how do you think about that on a go-forward basis? And maybe a small bit of a color on how are we positioned versus competition? Where do we exactly differentiate? I have a couple of follow-up questions on that.

Yes. Thanks, Omprakash. Thanks for that, actually. A couple of things that you need to look at it from our business standpoint, right? First, if you look at it, the 3 business units we talked about, one is cloud modernization. Second is streaming unification and third is the monetization of the marketplaces. So look at the first part of our business. Historically, Amagi has built technology over a decade right now to be able to enable large enterprise broadcasters to move to the cloud, which I think is a significant barrier to entry for anybody, right? Literally, Amagi has kind of built it over time and built it as a cloud-first solution that doesn't exist in the world today, right? So literally, Amagi is kind of leading that trend in terms of building one of the most complex and comprehensive solution for the TV networks to go forward. And that has been the reflection that you see in terms of some of the largest media companies today running their Winter Olympics or Super Bowl or all of that, that you see today is because of that trend line of what the technology has been able to deliver for our customers. So that's a big moat for us, if you look at it, Omprakash. The second thing that's happening in the streaming business, if you look at it is, Amagi, again, starting 2017 was a pioneer in providing ad-supported models and streaming television technology for the whole of U.S., for example, that we started. We continue to be a dominant player in that particular business. And we continue to -- as you've seen, the number of distributors, we were at 350-plus distributors around the DRHP and RHP filing to what you see right now is about 48 distributors that we're actually supporting today, for example. So we continue to be aggressive in terms of taking our customer content and be able to deliver and distribute worldwide globally. And that's a continuing trend that we see. The third part in our growth that you would have seen again is the number of impressions of ad impressions that we're delivering, which has been a record growth that we continue to see as well in terms of 60 percentage plus growth over the last year to get to 13 billion impressions. So all in all, I see that we have a very well-rounded growth trajectory that's kind of starting to play out. And that's essentially because of the platform strategy, which has been consciously taken by the company. And what I mean by that is a glass-to-glass strategy. Our customers want to gravitate on a single vendor who could actually provide them their whole mission-critical platform from an end-to-end standpoint. And Amagi continues to deliver on that particular promise. And all the innovations and the AI investments we're making right now is to strengthen and fortify this and maybe supercharge our customers in terms of human cost reduction. So that's the future of how we see it. We continue to see grabbing more and more market share from our competitors. Our competitors come in 2 buckets. One is traditional hardware vendors who are moving to the cloud. These are the companies which are public listed, 50-plus years in the business, continue to kind of transform. We have a second cohort of customers who are cloud-first -- competitors who are cloud-first who are coming in. But as it's small for -- from an Amagi standpoint and from a sophistication and the platform strategy, Amagi is quite ahead in terms of the market position that we're taking. So that's where we are, Omprakash, in the company.

The other question is on pricing and slightly connected to the previous participant's questions also. I'm more trying to understand -- I mean, you already indicated in the shareholders' letter that there has been a renegotiation with one of the largest customers and all that stuff. But has there been any phenomena where with respect to the recent advancements, what we are seeing with respect to technology, be it AI, whatever name we give it to. Has there been some pressure on the pricing with respect to the workflows, what we get involved into with respect to these advancements in technology in general, not just the large customers or the mid customers?