Booking Holdings Inc. (BKNG) Earnings Call Transcript & Summary

Great. Thanks, everyone, for being here at Cowen's 50th Annual TMT Conference. My name is Kevin Kopelman, I cover hotels and online travel for Cowen. We're very excited today to have Booking Holdings. We have Glenn Fogel, the CEO; and David Goulden, the CFO of Booking Holdings. So thank you so much for being here.

Thanks for having us.

My pleasure.

Great. So let's kick it off. First, one of the questions on everyone's mind, how would you describe the travel environment right now as we're heading into summer? And are you seeing any impact from your customers' behavior on inflation in the economy?

Yes. So yes, we announced our earnings, and I'm very happy to tell about April, about the booking numbers were good, up above where they were April in 2019. And the ADRs were above. Everything was -- it's very nice to see that. The booking window getting more normal, which shows that the traveler community is getting more confident and be able and going out to travel. Look, there's no doubt there are clouds on the rise, everybody reads the same stuff and all that. And the truth is, though, as we said, looking at the April numbers, we didn't see any impact from that, though, of course, it's hard to prove what would have been otherwise. One of the questions we're asked a lot about is, well, ADRs, they go up, what happens and stuff and the issues you can't really say, well, if ADRs have not been higher, what would have been the result? Historically, usually, you saw people where they trade down in the star level, maybe they were going to travel, or maybe they'd cut a day or 2 from the way they're going to do but they still spend the same amount of money. But right now, it's hard to say, well, would they ended up going with a 4 star, if the price [indiscernible] is so high, would they be on 5-star or not? I don't know when but it's not that relevant. For us, they're still spending the money to travel, which is really, really good. And we talked about looking at our summer numbers. And we've said that the bookings were 15% ahead of where they were at the same point in 2019 for our summer season, our peak summer season. And that was for the whole world. And if you restricted it just to Europe and the U.S., we're seeing 30%, that's impressive. We're happy, we're pleased. So generally speaking, we are very happy with what we were able to report.

Yes. And kind of a variation on that, that we're hearing now is investors are wondering, is this a peak summer travel season, and then we're going to see things fall off after summer? And as you're looking at your business, how do you -- what kind of things are you looking at? And do you have any visibility beyond that summer season as we start looking into fall and beyond?

Yes. That is an interesting question, isn't it? And I think I was reading yesterday, I read the news about yesterday's meeting with a whole bunch of CEOs of banks talking about what the future is going to be and there's got [indiscernible] et cetera. But we're looking at our numbers and stuff, trying to looks on that far ahead post summer season. The numbers generally the way people set out their travel, that is such a small number, that's not really that helpful, I'm trying to really predict what the future is going to go, looking today for something in the fourth quarter. That's not the way the business where people set up their travel on site. So it's not really helpful at all. Look, I don't think anybody has any certainty. And I can tell you, just looking at how it's been in the last 3 years, the world -- the -- if you said going 9 months ahead is going to be or whatever it has been really hard and may predict anything. So what we're going to do is just keep on producing great products, great services and trying to get as much of the share as possible and hope that -- no new wars and the current war goes away. No new pandemic, the current pandemic goes away, no monkeypox and people continue to enjoy traveling.

Cross-border has historically been a really big part of your business. That was hurt significantly by the pandemic, but more recently, it started to pick up again. What are you seeing in terms of customer behavior with domestic, which has been so strong now that cross borders coming back and how are you seeing that play out?

Yes. But look, there's no doubt -- you can't take the same trip at the same time, you can't go domestic and international at the same time. You got to use one or the other to get a go. And you're right, over time, there has been a trend as more and more countries have opened up. People want to travel. You hear old time anecdotally, I want to go to Europe 2 years ago. I want to go in Europe last year. Now finally, I'm going to Europe from the U.S. So it will happen, that will be a trend, et cetera. The question is, does this end up with more total travel, less total travel or not, do people spend more money, less money? I don't think there's much -- again, I don't know what the general macro view, people have X amount of money. They want to travel. They will travel, and we'll get a good proportion because we are strong, both domestically and internationally.

So I want to dig into the booking numbers. Strong quarter. You said that in April, your room nights were 10% above where they were in April 2019. And this is globally despite Asia and Russia, Ukraine. What are the key drivers of those share gains? And are those sustainable? And what are you seeing?

Yes, I think if you -- first of all, I think shares something we best looked at over a long period of time, right, maybe on a year-on-year basis. But -- so let me comment upon that, and then come back to April. So we know that when we look at 2021 versus 2019, we gained a few share points, particularly in the U.S. and in Europe over that period of time. And we know we continue with the growth rates you talked about, to stay ahead of where travel recovery is globally in 2022. So we feel good about what we've done. In terms of where the gains are and how to sell, there are a lot of questions to come back to the U.S., we intend to build on the program that was successful for us in 2021. We believe there's a lot of opportunity for us there. We see incremental opportunities in the few years in the U.S., including increasing consumer awareness of our brand. We've been doing that with the branding campaign. So hopefully, all have seen some of that this year, more than you've seen before. Improving the competitiveness of our alternative accommodation product in the U.S. where we have opportunity. We're still underway there. Ramping of our flight offering, which is still early days on Booking.com. Of course, we've got Priceline for quite some time. And then optimizing the cross-sell of accommodation with flights and payments are all things that we are driving in the U.S. to build on top of what we've already gained. We do expect in the U.S. that managed corporate travel and group travel, things that we under-index in a little bit, we'll continue -- we'll probably recover more, and there'll be a little bit of a headwind for us to overall share points. But longer term, we believe that gaining share is a function of the quality of our products and services, and how well we market those to existing and new customers, and we feel pretty good about all 3 of those.

Yes. Let's talk about flights. What was the impetus behind kind of going into that? How big do you see it getting? And also, how do you think about monetization of flights?

Do you want to start with it?

No, you go.

Sure. So the impetus really relates to our thinking around the connected trip and just solving a bigger piece of the travel problem for our customers. Leisure travel is still full of friction. All this either do it ourselves or have somebody else in the family do it for us. And we know how frustrating and complicate it could be. Even if you're using great servers like ours or one piece of the trip, but the rest of it you have left to the wilds of the travel industry. So we have a lot of input from our customers. They like us to solve more of the problem for them in travel. We look at this quite extensively. Obviously, at Booking.com where we're making the biggest shifts, we've focused upon accommodations for many, many years. When we did our research and customer said, "Look, we love what you do for us there. Make flights simple, make ground transportation simple. Make it clear, make it transparent, let me pay for it in one place, and I'll do more with you." That's the impetus. In terms of where we are, we're making good progress. We're now live in Booking.com in flights in 40 countries, up from 34 countries the quarter before. So over 70% of our accommodation bookers can now see a flight if they want to from Booking.com. The total company, we're making great progress. We sold over 5 million tickets in the first quarter, it's 2.5x what we sold in the first quarter of 2019. So it's ramping very rapidly. What we find on Booking.com is some interesting data points from what we've seen so far. So what we're seeing is that 70% for people booking a flight on Booking.com, 70% of those bookers, the flight was the first or the only thing that they booked. The only thing is an opportunity for us to sell more. But what that tells us is it is, in fact, a new funnel for us. It's a funnel for us getting customers into the system we weren't gaming for. And then a good percentage of people are booking flights, are booking additional things on the product. So we have good data that flight is really an anchor for us to go after new customers. And then finally, what we're seeing is of those flight customers, about 1/4 of them are brand new to us that we've never seen before, which is again, it's good for us early in this stage of rolling out flights because we've not been marketing flights extensively. So we're finding that even without the marketing, we're getting a good yield of new customers. And again, those are also getting healthy accommodation tax rates. In terms of where it can go, we haven't kind of given a single data point out, but we think that flights can be multiple times to sizes right now, and can actually become a meaningful part of our total TTV. It will not eclipse the size of the combination, but it can certainly be a meaningful part of our total TTV as we ramp this up over time.

The important thing to think about, too, is how big our business was that we didn't have flights at Booking.com at all. It's a very relatively recent expansion. And yet, we're the biggest travel company in the world without it. And this is -- flight after accommodation is the next biggest vertical there is. So the idea that we can now enter that now, the opportunity there is just huge for us.

These early flights customers, how are they finding Booking.com flights? Is it -- is it through advertising? Are they already on the site and they kind of see it on the site?

It's all different ways. And what's really interesting, too, about that is how -- and David just said that, we haven't really gone out marketing this thing big time. So part of the question was, where are those people who we've never seen before, how did they show up for us and where do they come from? Well, there's a little bit of that. There's some of that. We're really not doing a lot of Google flight stuff there at all. And certainly, there is a portion of people who do, they ended up at our site on another reason, they swap flights, and now they are getting flights there and all the other things. But I'll tell you, again, looking where we are without having done a big marketing campaign for flight yet, that again, opportunity.

Yes. And so on that, you announced the acquisition of Etraveli. What is -- what will that change? What does Etraveli bring to the table?

Yes. So our Booking.com flight product, it's our flight product, but Etraveli powers the back end of that product. We don't have the contracts with the airlines. We're not doing all the intricate back-office stuff. That's all being done by Etraveli, et cetera. They have some fairly sophisticated different things that they do. It's always a question of build or buy. And the idea is saying, look, by combining the 2 companies, we could really operate much more efficiently together to really try and turbo charge our flight product. And that's why we really want to bring them. They got some great management there. They've got some great expertise, great, basically, AI is still driven to go, what is the right offer to give to the right customer, things like that. So we're really looking forward to that because we do believe it's going to accelerate what we're doing right now, which is fairly nice, but we'll do it even better.

Okay. And when is that expected to close?

We say it would close this year.

Okay, got it. Let's talk about alternative accommodations. It's been a big growth area during the pandemic. Where are you? And then can you touch on the push in the U.S. You talked about going after U.S. so, what do you say to a U.S. host to convince them to list on Booking.com when they're probably already on Airbnb and Vrbo here and to get in that platform?

Yes -- no, and I've talked about this for a long time about how it's important to have a competitive product so that a host in the U.S. does think of using us as a way for them to get more customers. Look, we have a great, great market share in Europe in the alternative accommodation business, but people in the U.S. aren't quite as aware of that. And I know that if you go around anywhere in, let's say, outside this building, you said, "I need a place on the beach for a vacation, who can I use?" Right now I'm going to say, I go to Booking.com, and go get that villa on the beach. So we know we need to have a product that is better than it was, and we've done some things recently to do to improve, and I'll give you examples. Like [indiscernible] liability insurance. If you own a home and you want to rent it out to strangers, one of the things you may be concerned about, well, what happened, they slip in the kitchen, they break their leg, who's going to pay for that? And it's -- if you have to think that some distributors is going to give you free insurance for it, that's good. But we didn't do that. Other people did, we didn't. Now we do. That's a reason. Now I use it because I wasn't going to use it because I don't want to worry about that. And then you end up with some of the really big property management companies and dealing with payments and the way we do or sort of reconciliation. Well, in the past, it was kind of, let's say, it wasn't the best system. And one of the things they would say to us, they say, "Look, you've got to improve it. What we got is it's clunky, it's not easy. And could you please fix." And we did. And now we have a much better payment system working with the very large property managers so that the flows and the reconciliation and everything works a lot better. That's another way to get more inventory, and we have a whole list of things because we talk with these hosts. And we don't talk to just the host who already on, we talked about, why aren't you on us? We can bring new customers and they could give us reasons and those are things that go to the list of things will need to be developed and we're developing them. And it's a step-by-step process, and we're getting there and making it more and more comparable. Then there's the awareness going back to the people outside the building saying, "what are you going to use?" And nobody thinks that, well, you got to make sure they're aware of that. And we are going to make sure that there is that demand driven marketing to, but you can't do that until you got enough of the product out there that makes it worthwhile. Otherwise, we come with business, they don't see what they want, they don't buy. I absolutely know that we are not where I'd like us to be. I've said this for many years, but we have under [indiscernible] We have a great product in Europe. It works very well. We're a very big player there, and we're building slowly here, and we're going to continue to work on that.

Okay. is the assumption of international travel, a potential driver there? And you can -- when it's easier to say, hey, we can bring all these customers coming in [indiscernible]

Well, it's all we said, you always bring to the host. You always sort of anybody who has a product they want to sell and tell them how you're going to bring them to a customer, and you're going to bring to them efficiently at the right price and it's going to be easy to use and you're going to love it and you're going to make your life wonderful and therefore, please put it on to our shelf. And that's the pitch. And it's something that we continue to. We just recently did a campaign, it was in Vegas. There we have to be -- a lot of -- a lot of people there in that for our conference, and we make sure they're more aware of us. We're going to keep on doing that. Because one of the things too is to make sure people are aware that we have this product and then we can bring them incremental demand, which is what it's all about.

So yes, that's a good segue way to talk about payments, as you mentioned there. What is driving -- is the move to payments -- is it all about alternative accommodations? Is it also happening in traditional hotels? And can you just elaborate on how the customer experience is changing and then also how it impacts the financial?

Yes, payments is incredibly important for so many different reasons. We'll start off with some of the basics about payments, and really it's what I think is the glue. So if you want to offer more than just an agency-based hotel product where somebody shows up at the hotel and pays -- credit card pays there, if you want to do anything more than that, you got to have payment system. Right? You went to an alternative accommodations, well, there is no desk to show up in alternative accommodations to put your credit card down and get paid because there's nobody there. You got to have payments over there. But even more so, if you want to do merchandising, you want to combine things, you want to have a package-type product, whatever, connected trip that I talked about, you've got to have a payment system. And then on top of that, you have things like people want to pay in different currencies, where you want to make it easy on both sides. And you want to do something so he says, "Well, listen, I want to pay in WeChat Pay." Well, surprisingly, there are hotels in the U.S. that actually do take WeChat Pay and a lot, well we're going to build that one too. You have things where you can save money because I'll tell you who uses as a credit card, can take in a credit card, but they get charged a heck of a lot. Well, we can do it easier and faster and cheaper for them, given our size, our volume and all those things. And we can do all sorts of hedging for ourselves to make things easier, and we can eventually do things like Buy Now, Pay Later things, and we can do things like pay in your own currency. And there are just so many things that can be done. And to do that, you got to have payments. And that's something we've been building step by step by step. Did I miss anything big that we should mention?

I think you covered the main points. I think one extra point in Europe, I think payment regulation is getting quite complicated. So particularly the card not credit transactions, you have to have multifactor authentication. Not all small properties have got the investment to set that up in their payment systems. So they maybe even can't take those transactions now. And something like ourselves who put money into that, where we can take a second or third form of authentication at the time of the booking, we can provide that service to the hotel, so they can continue to take that kind of booking.

And that's one of the elements. What do we do? Why do we exist? We are providing services to other people who either don't have that service or to uses that service is more expensive. So we are making it easier for them to operate their business, the hotel business and payments is one of them. So we have the parts of the customer service stuff that we do, that they can't do. The marketing that we do, that they cannot do nearly as efficiently and on and on not. We provide a value proposition is why hotels use us. Otherwise, they wouldn't.

Let's talk about merchandising for a minute. I believe it's tied into what you're doing in payments. But how important has merchandising been? What are you doing there?

Well, it's important in the long run to continue to get more value to our customer and provide more opportunities for our partners to get more customers. So merchandising comes in different shapes and flavors, et cetera. Let's get the simplest example of an issue where a hotel, for example, may want to offer a free breakfast. It's a kind of merchandising is taking into the process. There's an issue to give that either away. Another thing that we'll be merchandising is we combine 2 products. Let's say, we're combining where somebody has to get off the flight now they had to get ground transportation on now to get from the airport to the hotel. Well we can offer up a product like, for example, a limo-type service, car service. And the car service could offer up at a less -- a lower price than they would offer up to the general public through our process. So it's hidden combined, but we can only do that because it's payments. We got so many different variations. And the great thing is using AI, using all the data we have that we make sure that the offer that is being presented is the one that's going to convert, provide great value to the consumer on the one side. At this other side, it provided a great opportunity for the partner supplier to get incremental business without cannibalizing its other channels.

Let's switch and talk about the marketing. A big part of -- you touched on it, but can you talk about your plans to lean in this year? And then looking at what's happened so far, why -- have we really seen that? You had some, I think, on a GBV basis, you had some leverage in the first quarter. So why haven't we maybe seen that kind of leaning in more so far?

Sure. So longer term, let's be clear, our longer term, our plan is to leverage our marketing spend, by having a higher direct mix. You saw it happening in 2019, you saw it happening in 2021. But this year, we said we wanted to take a different approach, right, Kevin, to your question. And part of it is we're coming out of an environment where people have not been traveling for 2 years. And this year is certainly going to be a year where travel surging is strong. If they haven't been traveling, maybe they're kind of not quite as familiar with the platforms as they used to be, right? Maybe that loyalty has gone down a little bit because they haven't traveled for 2 years. So in a recovering environment where we see, hopefully, things bouncing back, which, of course, we saw happening through the first quarter in April, we think it's a once-in-a-generation opportunity potentially to kind of lean in and capture demand, give more customers to the platform. The best way to get a customer to come back to us again is to use us in the first place. So we're kind of leveraging our strength and our financial strength and our marketing strength to lead in. We've done it before. Last year, you saw us lever our marketing spend compared to our gross bookings in Q1 and Q2. And then we delevered in Q3, we saw a strong summer happening. This year, we still think we're going to basically lean in and delever our marketing spend compared to our gross bookings. Q1, not a big surprise. We said that we will be flat. We thought from ROI, they were slightly positive. So we didn't expect the first quarter will be the quarter where we'd see all the demand come back. We think it's more a question of Q2 and Q3, like it was last year. So plans haven't changed.

How is the reaction then on the response to the new TV campaign in the U.S. with [indiscernible]

We're pleased with it. We like the campaign like a lot of people we talk to like the campaign. We saw good activity on social media around the launch around the Super Bowl. We saw a good follow-up as well. Importantly for us, we've seen a nice uptick in unaided awareness in the U.S. at Booking.com. So we see that. And of course, we're still doing well in the U.S., and we have to attribute some of that success of the campaign, although it's early days. So we're pleased about this campaign. We think it's got legs. And the early indications for us are good.

How would you describe the competitive environment on Google given the markets recovering, your competitors want that business as well? How is that kind of going on?

Yes. Well, it's competitive. It's a only way to describe it. Never been anything but competitive on that thing. Look, every day, everybody, we all go out and try and get those customers and we look at what do we think we got to bid? We use all the science we can and make sure we get the right ROI for the right bid and figure out that. It's -- unfortunately, and you can't do anything about this, this is a competitive world. And everybody is trying to do the best in there's a lot of game theory going on. How much you'd bid and what's going to happen or not. We've done very well over 20-something, 20 years in this business. And Google and all of the people were in, whether it be Google or other friends, everybody has always tried to get a higher percentage of the pie in their business, we can do try to get the price higher for us, and we've done a very good no matter what the change have been, we've acted well to them, adjusted well sometimes. We've actually come out better because of those changes. So I assume we're going to keep going because continue to work hard, and I think we'll do well.

And it's fair to say, I think that there have been a lot of changes as well.

There have been.

Kind of an area, maybe you don't talk about as much, but I know you're active in is the affiliate B2B side. And given it's -- your competitor is talking more about it, it's been a focus there, what is Booking's strategy? And also, how does Getaroom fit in the recent acquisition?

So it's been part of the business since the very beginning. I mean we call it affiliate marketing back in -- before the turn of the century when buys the Priceline maybe in 1999, there was affiliate marketing going on there. And we continue -- we also call it strategic partners is where -- there are customer, potential customers on other sites. And the question is, can you get that customer to come over and buy something from you at a lower cost that would be to get that customer another way? And if you don't do it, will somebody else fill that spot and when they go over there or not. That's the overall strategy. So basically, it's a way to get customers, there's another way to get them to comment at a certain price. The price scores can be a rev share. It can be all different ways you do it or not. And it goes everything from the obvious ones, you're working with an airline, you're providing hotels for that. That's easy and obvious. Where you're also not as obvious [indiscernible] store, you put some in and it costs nothing, and somebody buys, that guy knows why they do what they do. And everything in between, banks are big on this stuff, lots of different ways to do it. We have always believed that if you come up with a way that's going to be good ROI, you should do it. Of course, the ROI is not only what the amount -- the cost of the individual transaction was hoped to develop things, because sometimes some of these partners want bespoke things that are very complex, and you look at what they request, you say, I'm not going to do that one. Otherwise you do it because you think the buyer is going to be worth it or not. And it's certainly a lot lower risk because you're not putting upfront. Brand marketing, for example, you're going to get paid when you actually make some money. You get paid and you pay them. We bought Getaroom because Getaroom was a great player in the space. We have some contracts [indiscernible] retail areas that we want to have that part and our thing, too, and they have some great technology, and those are really good things. That fits under Priceline. So we've had a number of different companies that all have the strategic buyers. So we have -- Priceline has one, and the other company called Rocketmiles, which is all B2B, Agoda has its own and with Rocketmiles there. We have Booking.com has there. The Getaroom one is U.S. oriented, it's almost all U.S. business. It fits under Priceline. I'm very pleased with what's been going there. Good management and I can't say enough about the team down there.

Let's touch on margins. We talked about advertising, but if we kind of look at all of your overhead lines, you've got about $4 billion a year between personnel and G&A, IT. What kind of investment level is needed in the business? And how do you see that kind of playing out versus the top line?

Sure. So within there, there are some transactional-oriented expenses. So GST goes against G&A. So you have to put that off to one cycle, because that's just going to grow with the volumes. But that take out the transactional expenses indirect taxes, the GST, et cetera. And we expect to be able to lever those lines over time. I mean clearly, this is a business that needs investment. We got to invest in building our new products. We talked about Air. We talked about the Connected Trip. But we believe that we can lever that once we get back to stay state and back to market growth rates that are normalized and we can grow faster than market, we can lever that line. We also continue to look for potential efficiencies there as well. So long term, don't expect there to be a huge shift in the shape of the income statement there, taking out of these transactional expenses.

Okay, capital allocation. How are you evaluating repurchases that you've resumed and also potential acquisitions? And then on that, how do you view the growing inflows that you have from your merchant business where you're collecting the money upfront? Is that something that has to be totally [indiscernible] Or is that funding the business?

Sure. So repurchases versus acquisitions, they're not mutually exclusive. And we demonstrated that recently. We just completed one acquisition at the end of last year. Getaroom, we already talked about that. We expect to complete one this year, Etraveli. And then, of course, we start share purchase at the beginning of this year as well. So we have the ability to do both. Our bigger picture view on capital allocation hasn't changed. First priority for cash is to invest in the business. It could be through organic investments. It could be through strategic partnerships or M&A. And beyond that, we continue to return excess cash to shareholders, and we've done through share repurchases. Kevin, on your last question, the deferred merchant balances will increase as payments grow in the business. We view that as other people's money. I mean, ultimately, we are going to have to put it out to the hotel partners in return for the cash that came in to go with our bookings. So we watch that balance carefully, but we do view that as other people's money and not as a source of cash for repurchase or things like that.

Okay, understood. Well, with that, I think we have maybe time to take kind of 2 different questions. First one was just as we look past summer, can you speak to both supply and demand separately? Obviously, there's some supply restraints. I see this when we look at pricing of things into next year, and then how do you think demand behaves after this summer? And then the second question I had was actually around car sharing, Getaroom, total, stuff like that. In some ways, it seems to fit well with your model in terms of cards in remote locations that fits with alternative accommodations, that sort of thing. Is this something given your knowledge of rental and all that, is this a space that you guys would want to grow into at some point?

So I'll answer -- let me start with the second one first because relatively you talk about. But we'll always look at supply that may fit our consumers' needs. And it's something I could get our own wood to fit. There are always different ways to things in terms of getting their inventory into our system and all different things. And we always -- we look at that sort of stuff all the time, what fits, would be a property and that's the best I can say about anything. The second thing about beyond the summer peak and into the fall, et cetera, et cetera, my crystal ball for the longer term has been cloudy since 2000, and it doesn't really work that well. So the basic thing I come out always is, the one thing I do know is that travel will continue to grow in the long run slightly better than GDP globally. Our job is not to worry too much exactly what the volatility is going to be and how much this month, this quarter, next quarter really, is to continue to build a better product for both sides of this marketplace for the consumers who travel and our supplier partners so they can do their business better. And if we continue to be successful and making it better for both sides, providing value to both sides, we will win by taking a larger and larger share of what is absolutely going to be a growing market. Absolutely. It's been happening forever. People always want to travel. They always have it. World War II ends, and a couple of years later, Americans are all over Europe. It's all going to happen. Pandemics end, people want to travel. Our job is to get as big a part of that as we can. I have little confidence and I can make a better guess than anybody else in this room or any economist exactly how is the fourth quarter going to end up? And I'm not going to try. Instead, what I will continue to do is make sure our team has worked on the important things to provide better services, better products, and that's how we'll win in the long run.

Great. Thanks, Glenn. Thanks, David. Thanks, everybody.

Thank you.