Bending Spoons S.p.A. (BSP) Earnings Call Transcript & Summary

Good day, and thank you for standing by. Welcome to the Bending Spoons Q2 2026 Earnings Conference Call. [Operator Instructions] Please note that this conference is being recorded. I would now like to turn the conference over to your first speaker, James Cordwell, Head of Investor Relations. Please go ahead.

Thank you. And hello, everyone. Welcome to Bending Spoon's Q2 2026 Earnings Conference Call. With us today to discuss our results are Luca Ferrari, Co-Founder and CEO; and [ Enrico Martinelli ], Co-CFO. The Q&A portion of the call will also be joined by [ Davide Scot Patser, Co-CFO; Francesco Manoni, CTO; and Francesco Patarnello, Co-Founder and Head of M&A ]. But before we begin, let me cover the safe harbor statement. Some of the information you'll hear today will consist of forward-looking statements, including those regarding our objectives and outlook. These statements reflect our current expectations and are subject to a variety of risks and uncertainties. Actual thoughts and events may differ materially. For more information, please refer to our registration statement on the Form F-1, including the risk factors described there. We assume no obligation to update any forward-looking statements. During the call, we'll discuss both GAAP and non-GAAP financial measures. You can find the definitions of our non-GAAP financial measures, together with reconciliations to the most directly comparable GAAP financial measures in today's earnings press release, which is available on the Bending Spoons Investor Relations website to investors.bendingspoons.com Unless we say otherwise, all comparisons refer to year-over-year results. And now over to you, Luca.

Thanks, James, and thank you all for joining Bending Spoon's First Quarterly Earnings Call. I'll first explain what Bending Spoons is. Then I'll briefly summarize the quarter. Finally, I'll address a question central to our long-term prospects, what could constrain our ability to scale. Our playbook is simple. Acquire digital businesses, undertake deep integrations and transformations to improve them and reinvest the cash to generate together with incremental leverage and further acquisitions. Underlying this playbook is our long-term aspiration to build what we think of as the perfect operating machine. We've been refining this model since 2013 at its foundation, is what we call our platform, which consists of three elements: our people, our proprietary technologies and our proprietary data. Today, our platform brings together nearly 700 selectively recruited core team members, whom we call Spooner, powerful internally developed technologies, panning everything from AB testing to AI model orchestration and valuable insights accumulated through more than 50 acquisitions and thousands of experiments. And our results to date have demonstrated what we can achieve with this platform. Since the start of 2023, we've deployed nearly $6 billion across 15 acquisitions, consistently applying 25% unlevered and 65% levered IRR hurdles in our underwriting process. Through the execution of our playbook, we more than tripled revenue operating income and adjusted operating income in the 2 years to 2025. I'll turn now to Q2 2026, where we delivered a similar level of growth. Revenue increased 126% to $704 million. Operating income increased 139% to $240 million, representing a margin of 34%. Adjusted operating income increased 150% to $381 million, representing a margin of 54%. Diluted earnings per share was $0.28, up 163% and adjusted earnings per share was $0.46, up 167%. Operationally, we made encouraging progress in the transformation of AOL, Eventbrite and Vimeo. During the quarter, we released more than 70 product improvements across these three businesses. We also made substantial progress modernizing their underlying technologies, creating a stronger foundation for a faster pace of product development and monetization improvement. We continue to strengthen our proprietary technologies and the dozens of Spooners to our team, expanded our sources of financing completed the acquisition of attractive for enterprise value of $759 million and under two negotiations to acquire Airtable, with us last week announcing we had reached an agreement to acquire the business for an enterprise value of $1.29 billion. While we're pleased with what we've delivered in Q2, our focus remains on the long term, in particular, given how quickly we've been growing, and natural question is of arenas scale and what could ultimately limit that growth. We think about this constantly and see at least three potential constraints, the availability of attractive acquisition opportunities, our operational capacity to integrate and transform the acquired businesses, and access to capital at reasonable terms. To expand our capacity to grow and fulfill our ambitions for Bending Spoons, we continually work to ease these constraints. I'll discuss our approach to each in turn and highlight some of the actions we have taken recently. The first potential constraint is the availability of attractive acquisition targets. As we described in our IPO prospectus, our bottom-up analysis has identified more than 1,000 digital businesses that could be attractive targets over the next several years. Collectively, these businesses generate nearly $400 billion of estimated revenue in 2025. We, therefore, don't currently view target availability as a material constraint, at least for the next few years, and our acquisition pipeline is as strong as at any point in our history. However, to maximize our prospects of generating attractive returns for many years to come. We believe it's important to continue expanding our addressable market, broadening the range of businesses within this addressable market with acquisitions we can underwrite with conviction. We approach this deliberately. Ideally, for any acquisition of material size, the core economics should be familiar to us, and any new capability the business brings should have the potential to be reused across our platform. Tractive is a good example. It's the market-leading pet tracking and health monitoring service. And we were attracted to the business due to the growth potential of the category and the opportunities we saw to continue improving the product offering, broaden distribution and optimize marketing. Tractive from early generates revenues from subscriptions, an area in which we have extensive experience. However, it also incorporates a physical device, giving us an opportunity to deepen our capabilities in areas such as hardware design, device can activity, supply chain management and support for an installed base. Success in Tractive active would give us confidence in further expanding our addressable market. Airtable provides another example. Our table is a no-code, low-code platform that enables teams to organize data and manage critical workflows. The strength with brand and product, its positive revenue trajectory and the still sizable opportunity in the category all contributed to our decision to acquire the business. A substantial portion of Airtables revenues generated through the self-serve channel, again an area very familiar to us. However, the pending acquisition would also create an opportunity for us to deepen our experience serving enterprise customers through direct sales. Enterprise SaaS is included in our $400 billion addressable market estimate. And we already have a foundation in this area through Brightcove and Vimeo. At the same time, further enhancing our platform in connection with direct enterprise sales, we improve our ability to confidently underwrite more acquisitions in this kind going forward. The second potential constraint is the operational capacities required to undertake the deep integrations and transformations that are often needed to achieve our return objectives. AI is becoming increasingly important in expanding that capacity, and during Q2, we made further progress incorporating AI into our day-to-day work. One example is Alt-Spooner, a personal AI agent that we developed during the quarter and made available to average Spooner in early July. It operates within each user's existing access permissions and can work with that person's authorized history and connected accounts. Alt-Spooner ranks on open [ wide ] models that we host ourselves. And its model agnostic architecture allows us to use and compare different models, including closed weight ones as their performance and economics evolve. During its first 3 weeks of general availability, Alt-Spooner processed more than 100 billion tokens. The speed of adoption and its effectiveness have been encouraging. I personally have some wow moments with Alt-Spooner. During Q2, we also introduced AI-enabled interacted tasks into part of our recruiting process. Our testing indicates that these tasks provide a predictive input into candidate assessment. We also make our recruiting process more scalable. These initiatives build on a broader sophisticated and long-standing use of AI across our platform and our overall progress in expanding operational capacity can be seen in our productivity metrics. In Q2, revenue per Spooner exceeded $4 million on an annualized basis. We're also undertaking increasingly large transformations at a comparable increase in the number of Spooners deployed. For instance, around 60 ones worked on Vimeo during Q2, broadly in line with the number of Spooners who worked on the Evernote transformation in 2023. This is despite being roughly 4x the size of Evernote in revenue terms a more complicated business from both a technical and operational perspective. Even with these efficiency gains, Spooners are likely to remain our scarcest resource. Therefore, we'll continue to invest in our ability to attract, select, retain and develop exceptional talent at scale. We'll also continue to make aggressive trade-offs as we deploy resources to what we judge to be the highest return activities. Most often, this is the integration and transformation of recently acquired businesses. Finally, we can rule out the possibility that from time to time, we'll have to slow down our acquisition activity in light of operational capacity constraints. The third potential constraint is access to capital, the reactions taken during Q2 and after quarter end, both the scale of the resources available to us and the breadth of our financing options have improved. During Q2, we entered into a new euro-denominated term loan facilities totaling EUR 255 million and increased our euro-denominated revolving credit facility by EUR 460 million for a total of $1.58 billion, based on the quarter end exchange rate. After quarter end, we secured a further EUR 590 million of term loan financing increase our revolving credit facility by another EUR 30 million and received net proceeds of $1.10 billion from our IPO. These actions, together with our existing cash balances and the cash we expect our businesses to continue generating provides sufficient funding for the pending table acquisition while preserving flexibility to pursue additional acquisitions that meet our return thresholds. We intend to exercise that flexibility while maintaining plenty of headroom under our debt covenants and sufficient liquidity to meet our obligations in a range of downside scenarios. As a public company, we now have access to a broader range of financing sources. We'll select among those sources carefully, remaining focused on the objectives of maximizing long-term shareholder returns while keeping a prudent risk profile. With that, I'll hand the call over to [ Enrico ] to discuss our financial results in greater detail.

Thank you, Luca, and hello, everyone. In Q2, we delivered triple-digit revenue growth and expanded our profitability with contributions from across our diversified portfolio of businesses. Cash generation and our financial position remains strong. I'll cover each of these areas before discussing our outlook. For Q2, Total revenue was $704 million, up 126%. Organic revenue growth was 3%. Underpinning this organic revenue growth, the strongest contributions came from WeTransfer and Tractive, partly offset by a decline in revenue and supplies revenue. Relative to our expectations, we primarily saw better-than-anticipated performance in AOL advertising. Q2 operating income totaled $240 million, increasing 139%. And adjusted operating income reached $381 million, increasing 150%. To calculate adjusted operating income, we remove amortization and impairment of acquired intangible assets, transaction-related expense reorganization-related expense and other items that we don't consider indicative of core or ongoing operating performance. Operating income margin was 34% and adjusted operating income margin was 54%. The expanding 2 percentage points and 5 percentage points, respectively. This margin expansion resulted from scale economies as well as operational efficiencies unlocked as we continue to improve our platform. In addition, we keep redeploying Spooners to areas offering the highest return, which we see as an advantage of our approach. Looking at the major components of our cost base, cost of revenue increased to $241 million, representing 34% of revenue, unchanged from the prior year period. The increase in cost of revenue was primarily driven by three factors: First, an increase in amortization of acquired intangible assets, reflecting continued acquisition of it. Second, an increase in IT infrastructure expense, reflecting an increase in cloud infrastructure utilization, mainly driven by acquisitions. And third, an increase in distribution and payment processing expense, reflecting the increase in revenue. Operating expenses increased to $223 million, representing 32% of revenue compared with 33% in the prior year period. The increase in operating expenses primarily reflects personnel costs associated with the ongoing operations of newly acquired businesses, and separation packages offered to team members in connection with the reorganization of AOL, Eventbrite, Tractive, and Vimeo. After adjusting for the items excluded in our calculation of adjusted operating income, cost of revenue increased to $155 million, this represents 22% of revenue, unchanged from the prior year period. The increase was primarily driven by IT infrastructure expense and distribution and payment processing expense. Adjusted to exclude the same cost items, operating expenses increased to $168 million, representing 24% of revenue compared to 29% in the prior year period. We continue to drive productivity across the organization and remain disciplined in our approach to sales and marketing activities. The development and adoption of cutting-edge technological tools has been and should remain a key driver of efficiency gains. Equity compensation expense totaled $40 million in Q2 we do not exclude this expense in the calculation of our non-GAAP financial measures. Returning to our GAAP financials. Interest expense was $109 million, rising 205% year-over-year due to an increase in our absolute debt levels and to a much lesser extent, an increase in the effective interest rate. Other income was $19 million, and we recognized an income tax benefit of $26 million. This resulted in diluted earnings per share of $0.28 and adjusted earnings per share of $0.46, up 163% and 167% respectively. As we detailed in our earnings release, we've revised our definition of adjusted net income and adjusted earnings per share to exclude two additional items. Foreign exchange gains, losses on assets and liabilities denominated in a nonfunctional currency are now excluded as are gains and losses from changes in the fair value of interest rate swaps. These items are recorded in other expense income in our GAAP financial statements and has been excluded from our non-GAAP financial measures, as we believe that such adjustments improved period-to-period comparability. Full details of these revisions, together with [ recast ] historical results can be found in our earnings release. Turning now to cash flow and our financial position. For the first half Net cash from operating activities totaled $254 million against capital expenditure of just $4 million. This cash flow was net of cash payments associated with transaction-related expense and reorganization-related expense. In terms of uses of cash, in the first half of the year, we paid $2.29 billion for acquisitions net of cash received. We also made $204 million in principal repayments of long-term debt. We ended Q2 with total long-term debt of $4.88 billion. Cash and cash equivalents of $793 million and thus net debt of $4.09 billion. Leverage ratio stood at 2.4x. Please refer to the earnings release for the definitions of net debt and leverage ratio. During the quarter, we entered into a new euro-denominated term loan facilities with an aggregate principal amount of EUR 255 million and obtained EUR 460 million increase of our existing euro-denominated revolving credit facility. We drew a total of $381 million under a combination of these new term loan facilities and the existing third loan and revolving credit facilities, of the amount, $296 million was not under the revolving credit facilities on May 6, 2026, remained outstanding as of quarter end and has since been repaid. After the end of Q2 2026, we entered into additional euro-denominated term loan facilities totaling EUR 590 million, and obtain increases of euro-denominated revolving credit facilities for a total amount of EUR 30 million. Also, we sold 39.6 million primary years at $29 per share in our initial public offering in July. Net of underwriting discounts and commissions, this raised a total of $1.10 billion. The primary shares issued in our initial public offering will be reflected in our basic and diluted shares outstanding as of Q3 2026. Now to guidance. For Q3, we expect revenue to be in the range of $733 million to $745 million, and for adjusted operating income to be in the range of $380 million to $400 million. For the full year, we expect revenue to be in the range of $2.78 billion to $2.82 billion, and for adjusted operating income to be in the range of $1.46 billion to $1.51 billion. This guidance is based on the set of businesses we own today and doesn't incorporate any contribution from future acquisitions. Specifically, it doesn't include any contribution from the pending Airtable acquisition which we expect to close before the end of the year. With that, we are ready to start the Q&A portion of the call.

[Operator Instructions] And the questions come from the line of Eric Sheridan from Goldman Sachs.

Congrats on the inaugural earnings report. Coming back to the Airtable acquisition, maybe just a few parts. Do you have an expected close date? And then the second part of it, maybe when you think about the historical financials of Airtable, where do you think the biggest opportunity set to continue to grow ARR and/or improve the operating margin of the company post close?

Luca here, Co-Founder, CEO at Bending Spoons. Welcome, everybody. So regarding the closing date, we don't know. We are expecting the transaction to close this year, but it's difficult to be more precise. In terms of the opportunity we see with Airtable, I will start with the strengths. We believe that brand and the product are really good. And importantly, they serve a critical use case for organizations. Airtable is used to collect, manage data and build applications that are used across teams and departments. It's often at the center of how companies that choose to adopt Airtable, operate. And as such, we believe offers a strong foundation for continued growth and value creation. We are excited -- specifically to your question, we're excited about both the ability to keep growing the top line. We believe that there is significant untapped opportunity to continue expanding within existing accounts and acquire new customers. We look forward to working with the Airtable team to help turbo charge that. And we also believe that there are opportunities for operational efficiency.

And the questions come from the line of [ Lloyd Wensley ] from Mizuho.

Two questions, if I can. First, just going back to air table, how much of, I guess, a shift is this in the sense that it's growing significantly faster when you're acquiring it than prior deals? Does this -- is there really an opportunity to really find really attractive businesses like this? Given the environment we are in with sort of a lot of privately funded software companies that are looking for a home that are still high quality but struggle to raise money. Is there -- is this sort of like a groundbreaking example of the environment we're in? And then the second one would just be, if we think about the enterprise value you've acquired year-to-date at about $3.5 million, I think that's about where we were for the full year. Is there room to do more this year? Or should we assume the big ones are largely behind us for this year in terms of the future of M&A?

So regarding the growth profile for Airtable, we think -- I think it's a little bit of a full [ smith ] that we have only acquired more stagnant businesses. We are neutral on the growth profiles of the businesses we acquired. Obviously, we'll tend to pay a higher price for growth in businesses, but we are happy to buy businesses that have been growing, and we expect to continue growing fast, grow more slowly, stay flat or even occasionally shrink. We -- of the businesses we have acquired so far, several we're growing nicely. WeTransfer, komoot, Remini back in the day, so attractive recently. So it's not all that new to us. But yes, it's, of course, great news when we can acquire a business with planning [ put a hand out ] if the price is reasonable. Regarding the ability that we have to continue doing acquisitions going forward. I think only time will tell. We see the environment as favorable and we have capital to deploy it, thanks to both the IPO and recent that raises as well as our continued cash generation. We have operational capacity, although certainly, with Airtable, we will be assuming it closes in the next few months, we will be at five businesses acquired in the trailing 12-month period, which is, let's say, towards the higher end of what we generally feel ideal for us, but we have more capacity to do a little bit more if the appropriate opportunity to present itself. And so we're positive. Our pipeline looks probably as good as it ever has, to be honest. Yes. But we'll see. I mean, M&A remains an opportunistic endeavor, so it's impossible to be 100% certain what will happen.

The next question comes from the line of Doug Anmuth from JPMorgan.

I just wanted to ask about the recent attractive acquisition and just the fact that it's one of your first deals that has a hardware component. Just curious how you're thinking about hardware-enabled businesses and where that has a place in your M&A philosophy going forward?

So in general, we -- almost everything we do at Bending booms is aimed at trying to maximize the probability that we can fully realize the ambitions we have for this company, which is a massive ambition of growth over the very long term. And with that in mind, expanding our addressable market many years before it becomes a constraint is important. So we shared in our prospectus that we found approximately 1,000 digital businesses that we think could become attractive acquisition targets over the next several years, and the aggregate to approximately $400 billion in revenue, estimated revenue for [ 2025 ]. By the way, there is growth overall in this sample. So presumably, the size will be a little bit bigger in 2026. So that's -- we think that's a huge addressable market, and that's a fully digital stuff. But becoming world class at almost any difficult thing takes a while. And so once we found attractive, which was primarily where we think you win primarily through the digital experience and where monetization is primarily through subscriptions areas that we understand, we believe really well. Yet where hardware was a part of the overall equation. We jumped at it. We saw a wonderful company with a very good opportunity ahead of itself. And at the same time, the added bonus of being able to train our muscles when it comes to -- in this case, the consumer hardware. So that was the thinking behind it. We are extremely happy with the acquisition so far. And we're finding that, although clearly, we have limited experience with hardware. We are already finding ways of providing value. We're learning a lot from the team. So the market for businesses that have a hardware plus software component is massive, clearly. And so maybe in time, we'll be able to do more in this, let's say, adjacent area. So far so good, but the jury is still out.

And the questions come from Stefan Slowinski from BNP Paribas.

Just wanted to ask about the organic growth in the quarter of 3%. I believe it was down from 6% in Q1. So just wondering if the underlying business if that's in line with your expectations? And then the follow-up would just be, if you're seeing any accelerating AI impact on the portfolio today, whether it be in terms of disruption in those markets or whether it be in terms of opportunity from a product standpoint or a pricing standpoint.

So regarding the 3%, it came in a little bit higher than we expected. The close but a little bit higher than we expected. The largest contributors as we included in our disclosures where we transfer attractive and then revenue supplies were the negative contributors. Obviously, as we added recently added AOL, Eventbrite and Vimeo which in aggregate, grew in the low single digit that also factored the overall growth rate of the company. So that's the short explanation for the 3%. Obviously, the landed growth rate will depend each time on the composition of our portfolio at that point in time, the performance of individual businesses that your prior sometimes some business may be doing well but had an especially good quarter, a year prior, it will depend on the sequencing of monetization improvements, which can also influence blended organic growth rates substantially. Anyway, that's a 3%. And then taking a step back, I think this is a good opportunity to reiterate -- we talk about this in our perspective, but I'd like to reiterate on how we look at organic revenue growth. So our goal, and I mentioned it a few minutes ago, is to maximize shareholder value, the success of this company 10 years out, and that translates into trying to compound revenue and operating income, earnings per share on a per share basis, including revenue and operating income as quickly as we can. And we are pretty much neutral when it comes to the underlying characteristics. We're happy to do it at any particular organic growth rate, we're happy to do it at any particular margin structure within reason. And we believe that the, say, mathematically sound way of approaching, creating shareholder value. So sometimes, as we approach our M&A activities with that objective in mind, we find that the best return opportunity is in a slower growing business such as AOL, an acquisition, we're actually extremely happy with, like I said, growing low single digit. We think actually a much better business than people realize. And even sometimes shrinking businesses, if the IRR is what it needs to be, we're happy to pick those up. But equally, if we find that great returns are promised with fast-growing businesses. You mentioned not you specifically, but one of your peers mentioned the Airtable a moment ago, and I mentioned attractive and commute as other examples of fast-growing businesses we have acquired somewhat recently. We're happy to get those down as well. So organic revenue growth will just be an output of our capital deployment activities, and it could be higher or lower, and it's not something we particularly focus on or -- and certainly not something we optimize for. Regarding AI, we haven't seen, say, any noticeable disruption in any of our businesses really because of AI. I think at least none of the significant ones. I think it could make an argument -- I'm not entirely convinced, but I think you could make an argument that revenues decline could be connected to progressing AI. Frankly, we see that revenues, existing users and customers continue to behave exactly as before. We haven't noticed any change in behavior. It's just at acquiring new users and customers was particularly challenging for that business in recent quarters. And we believe it's mostly due to saturation in the market. Ultimately, this is a market that was born only a few years ago, automatic generation of image and video content. And a lot of progress has been made by us and others. There's -- it's more difficult now to come up with novel ideas and a lot of revenues growth was driven by let's say, viral spikes were with major innovations, and we were able to attract new users and drabs here and there. An unusual pattern, by the way, I would say, revenue is the only one business in our portfolio. where customer acquisition was [indiscernible] all of our other businesses of any significance are perhaps much more boring, but also much more predictable in that the acquisition comes from word of mouth and it's quite steady over time. And so I think mostly it's a saturation, but I think it's a reasonable argument that one could make that because it's now more commoditized the generation of content, especially image, but also video content through AI, competition has intensified. And therefore, while this has not apparently impacted the behavior of our existing users and customers has made it more difficult or expensive to attract new users and customers. So that's the only area of our business where I think potentially, I has had a negative impact. Other in that, we haven't seen anything whatever. In terms of upside, I'm probably not seeing anything shocking here, but we are seeing massive opportunity in terms of operational efficiency. We mentioned our recent release -- internal release of a tool called Alt-Spooner like Alternative Spooner. It's a pretty wonderful technology, in my view, that enables people to be super human in their productivity. I'll give you an example. Quite recently, I was in a slack an with one of our general managers, she leads Evernote specifically. And this channel is meant to be a place where we provide feedback on how the product will be improved. And this person posted by asking Alt-Spooner because you talked to Alt-Spooner as if it were a colleague on any company channel. She asked her Alt-Spooner to investigate a bug. She had noticed in check with our internal technologies, there's one called [ marrows ] that enables tracking customer support tickets for product insights. So she asked Alt-Spooner to look for this bug if it had been reported by other customers. And so if we could conclude it's a prevalent bag or just something extremely rare that she encountered. And then assuming that the answer was this has been reported by others. She asked her Alt-Spooner to investigate the root cause in the code program a fix and then reach out to Evernote a tech leader asking that he review and hopefully approve the pool request so that the bad can be fixed and pushed to production. And I witnessed this. This was the first time I saw Alt-Spooner in full force. And in a matter of probably, I don't know, 5 minutes or something like that, 5 or 10 minutes, all of these tasks have been completed, and the only reason why the bag was fixed the day after is because the technology leader was now checking slack at that particular point in time, which maybe we can improve on that, too. But it is mind-blowing because this is a process in the past would have been optimistically a week and probably a few tens of person hours and was completed in maybe, I don't know, like half an hour by Spooners in a real [indiscernible]. So that's an example where our operations have really picked up in efficiency, thanks to AI. There are many more, but this hopefully makes the case. And then in terms of let's say, the more visible ways AI can be helpful. Of course, you can serve customers better to AI most of our product work. Yes. I would say most is probably accurate to say certainly a big part of our product work across our portfolio over the past maybe 6 months or so has been focused on AI-related or even AI-centric functionality and thinking that Brightcove we introduced auto translations, audio track dubbing, live captions in 50-plus languages. It's all basically done with AI. This was a transformative feature for our enterprise customers. We introduced content multiplier, which enables content organizations, media companies to take their high-quality content and produce all sorts of alternative formats, shorter versions, highlights they can post. It's just a few clicks. This makes them a lot leaner, faster, more successful. We introduced recommendations so that once -- if you're a media company using Brightcove user of your audience has completed watching one of your videos, then you can enable recommendations allow YouTube a little bit, and these are now very smart, and we saw improvements in viewership for our customers ranging between 20% and 40%, which obviously is a gain manger for a media company. Again, just to stay on right at a little bit deeper on one or two businesses and then provide you that quickly and shallow touch point on all. But we introduced in the back end, so basically the part of the product that the administrators and actual users on the customer side of things used to then reach their audience, their viewership, we introduced all sorts of agentic functionality. You can now use an agent to perform previously menial and cumbersome tasks such as reordering videos and organizing things finding videos when we have created a much more advanced layer for developers so that you don't necessarily have to go through the pretty good API that we had in place, but you can use an [ MCP ] to basically skip that and let your AI agents operate with price effectively. The lease is long. But generally speaking, what I just described for Brightcove would apply with the due adjustments to probably 80% of our business. So it's exciting. I will say it's still unclear. I don't think this is a benching. I think this is almost any company thing, exactly to what extent these high-enabled features translate into incremental revenue. We're seeing -- certainly, we're seeing uplift here and there. But I wouldn't say we've seen a massive uplift where all of a sudden, the customer always paying, say, $100 is willing to pay $200, maybe they're willing to pay $110, which is good, but not transformative. Now the good news is that none of our strategy is in no way predicated on that being the case, but we'll keep an eye on it, and we'll let you know if this change.

The questions come from the line of Kirk Materne from Evercore.

I guess my question would be with Airtable adding some enterprise sales motion to a portfolio that's traditionally been a little bit more weighted to consumer and self-service subscription businesses. Should we view this as a bit of a shift in your M&A philosophy towards more enterprise? Or is this just one example and obviously a very big M&A pipeline you all have. I'm just kind of curious if there's any kind of longer-term shift, we would expect to see you all go a little bit more towards enterprise, just given maybe the machinations in the M&A market right now.