Dropbox, Inc. (DBX) Earnings Call Transcript & Summary

Okay. Good afternoon, everyone. I am Mark Murphy, software analyst with JPMorgan. And it's a great pleasure to be here today with Dropbox CEO, Drew Houston; and CFO, Ajay Vashee. Thank you so much for joining us. It means a lot to us. The plan here is I'm going to kick it off with probably a handful -- or a handful plus some questions. But we can also take questions from the audience here. And so you would do that by -- in fact, we already have 1 or 2. You can do that by clicking the Q&A button at the bottom of your screen and then typing in your question. And you can do that anonymously, and I will then be able to relay that to our guests here. So again, Drew and Ajay, thank you so much for joining us. Maybe we could begin with just a very brief introduction of yourselves and the company and the problems that you're trying to solve.

All right. I can start. I'm Drew Houston, Co-Founder and CEO. We just had our 13th anniversary of Dropbox. And as I'm sure we'll get into more, we've evolved for keeping your files in sync to keeping teams in sync and building a smart, collaborative teamwork space for all your content.

Awesome. And I'm Ajay, CFO and partner to Drew in executing to our mission.

Okay. Thank you for that.

So perfect segue because what I want us to do is start by talking about the vision and mission of the company. Drew, you touched on this. I think if we could go back a few years or a few years plus, the company really revolved around storing of files in the beginning. And you've expanded very rapidly into sharing and collaboration. You have talked about that transition from keeping files in sync to keeping teams in sync. You've also mentioned this -- the mission of designing a more enlightened way of working. What do you think is most important for us to understand about how that vision is evolving and expanding over time?

Well if you rewind back to 2007 when we started the company, I thought Dropbox was a place you threw your files to. And then when we watched our customers, millions of them were bringing it into work. And they weren't just -- it wasn't just -- Dropbox wasn't just a folder on your desktop. It is literally the place where you go to work because more and more, I mean, especially in this environment, you're not even going to an office anymore, you're working out of a screen. And that environment has a lot of challenges. But we saw that -- okay, people -- this is -- if Dropbox is where people go to work, we aren't just getting files in sync, we're keeping teams in sync, keeping people in sync and connecting people to their most important information at work. And over the last few years, we've been evolving that experience from a folder of files to a collaborative teamwork space for all of your cloud content. And now especially post-COVID and given the shift of distributed work, that experience, I think, has a lot of room for improvement because it sort of happened to us. No one really designed it. And I think we've been able to muddle through and make it all kind of -- then piece it together. But what we're thinking about now is how do we make that experience really great. How do we help people with a lot of the challenges, I think, we all experienced, which are the experience within technology or work has become really fragmented and overwhelming and keeping track of all these different tools because a lot of our customers and probably many of us here are using Office, and G Suite and Slack and Zoom and everything else. And so our customers need a way to tie all that together. And that's what we've been building, most notably with the new Dropbox and Dropbox Spaces that we launched last year, but there's a lot more that we're doing.

So I want to come back to that comment about -- that you made about, especially now because I think we certainly saw that. We saw that help and that uplift in your Q1 results and the guidance on the year. So I want to come right back to that, but one of the main questions we get, Drew, I think as people try to assimilate all these moves that you're making, is just how do you compare and contrast your vision of the world versus some of the others. And you mentioned some of them, but we will field these questions on Microsoft with Teams, Slack, Google Docs, other kinds of offerings. How do you view your core differentiation? And how do you think we should try to understand that?

Well, the first thing is that we're platform agnostic, and we're -- we see a big role, a big opportunity to organize your working life. And in a way that's pretty different from Teams and Slack and some of the messaging channels because -- and those are great tools, but they won't solve everything. And in fact, one of the challenges with some of the messaging tools is there's a lot of volume, right? They can become very noisy, very interruptive. And, I mean, we all experience this, like if you go away from work for, God forbid, a day or worse, a week, when you come back, you have to reads all these chat transcripts from dozens of channels. And so it becomes a lot more difficult to focus. And so our first -- I'd say our 2 big differentiators are: one, is that we're platforming agnostic and we pull everything together; and two, is providing more organized and focused experience that doesn't revolve around notifications and gives you a cleaner picture of what's happening on your team without having to piece together 1 million different e-mails and chat messages.

So a cleaner picture with less distractions, and I think we can all relate to that. A lot of times you feel like you can't go on vacation because by the time you come back, you're just -- the problems have just sort of multiplied. I wanted to also try to look back on this, Drew. The product innovations you've made in recent years. You've had Dropbox Paper, you've got Showcase, you've had Smart Sync, I think it gets a little overlooked. I know it's something I appreciate. You've acquired HelloSign. You're now talking about Spaces. Can you help us understand all these moves that you've been making? How is all that fitting together into this tapestry that you're weaving? And what -- how is that creating a whole that's greater than the sum of the parts?

Well, collectively, we're building a portfolio of collaborative apps for teams and distributed work. And we're addressing a lot of the new challenges that have been created as those -- as that whole toolkit has evolved. Because there are a lot of challenges you have today that you didn't have 10, 20 years ago. Once upon a time, we got 5 e-mails a day, now 500. And so we look at the experience and we look for the gaps. And so one challenge that our customers had or still have, a lot of them, is a lot of your work might -- your files might live in Dropbox, but you're using a lot of cloud content, things like Google Docs or Figma docs and there's some new content types created every day. We used to go to multiple places to keep track of what's going on in projects. And so we looked at that and I'm like, well, what if you could bring these things together? What if your PowerPoints can live next to your Google Docs? And that's what we did with the new Dropbox. So we saw that problem in fragmentation, and we saw an opportunity to pull it together. And there are a bunch of other examples. So Smart Sync was designed -- it kind of gives you an infinite hard drive or it lets you stream all your content on demand, it's really the first product like that at scale because once you're syncing a lot of your teams' content to your hard drive, you can run out of space. And so it makes the problem of running out of space go away. So we start with our customers and a lot of what they experienced, and worked back from there. And over time, we've been building a portfolio of apps based on adjacent needs because we saw that one of the first thing people are doing, take HelloSign's example, one of the first things people do with their Dropbox content is they hit save on a contract, they go into Dropbox, but then they need to send it out for signature. And historically, you've had to reupload that piece of your content to some other service, get the signed contract, download it, save it back in Dropbox. And we saw both an overlap in our customer base and an adjacent need. So we're constructing this portfolio around all the gaps and needs that we see in our customers. And as much as technology, I'd like to say, for every problem technology solves, it often creates a new one, and that creates a lot of opportunity for us.

So Drew, what do you think is the #1 most underappreciated aspect of Dropbox? If we were to ask you something that's resonating with users, but it may be something that is difficult to achieve? It would be difficult for someone else to replicate. Would you say it's the ease of use? Is it the elegance of the design? Is it what you've done with the data back end itself? The neutrality that you've mentioned? Something else?

Yes. I think it's this combination. And those things weaved together into a unique playbook. And a lot of the way I thought about it is we have these consumer roots. And we've been bringing the consumer Internet playbook to business software. And that starts with a mindset around first focusing on the end user, building a great product experience. And then the way we do distribution is really different. So focusing on viral and bottom-up adoption instead of selling through or instead of [ starting ] with IT. And then being platform agnostic is more important than ever, given how many different tools and ecosystems are out there. So I think it -- the magic happens when it all comes together. And so each of those are strengths, and we don't see anyone else replicating the combination of that.

So maybe you can help us understand how you get to that combination of factors and what goes into it. I know you have this kind of flywheel going. You have 600 million registered user accounts. It's been an exabyte scale plus of data, I think, for years now, 550 billion pieces of content. And we hear you and we hear Ajay as well, commonly talking about how you will apply data science to all of that content and you will create an advantage out of it. Can you help us understand what are those signals you're looking for? And then how has that helped you to steer the product direction?

Well, we use data science in all kinds of different ways and machine learning. But I'd say the first thing we do is use it to improve the product experience and try to predict what you might need. And so in the Dropbox tray, we've added a lot of machine intelligence to help predict what the content you're going to be looking -- to predict the content you're looking for -- that you're likely to look for without having to search for it. And pulling in signal from things like your calendar, that's something that we've launched last year to -- so that if you have a meeting with a certain title or certain attendees, I'm trying to predict what is the content that is most likely associated with that. And so trying to look at just the moment-to-moment experience of work and use machine intelligence to eliminate little pieces of friction to help organize things for you, to predict things for you, to build a smarter experience. And the second way we use machine intelligence is connecting you to the functionality you need, and whether that's just the -- connecting people to a feature they haven't used, and then there's a big monetization angle. So -- or connecting people to a paid plan or paid feature that they might not be aware of. So for example, one of the first things that -- or one of the most primary use cases of Dropbox is sharing content. And we've built a number of products to make that easier, most recently Dropbox Transfer. But -- Dropbox Share, which is a really easy way to send large quantities of content, and do that in a really seamless one-click way, so delivering that content. And we have brand that have analytics, a lot of the things that our users would like. But that's a feature that's only available in our paid plans. And so when you go to search -- I'm sorry, when you go to share a file, making -- connecting people, using machine intelligence and data science, connect people with the offer or the plan and the feature with the highest propensity, there's all kinds of ways we do things like that. So they're really building this product-driven conversion engine that automates a lot of what you would have a sales or marketing team do.

Okay. So Drew, I think that helps us understand how you're using the data science to constantly improve that user experience. I believe you're also using that to kind of inform the conversion engine, right, and to optimize that motion of converting from free to paid? Do you or Ajay have any thoughts on how that process is running? How it's evolving? Where there's room -- where it's working well? Where there's room for improvement?

Yes. I mean -- and Ajay, chime in, too. But it's certainly -- I mean, you've seen the growth in both subscribers and ARPU. And both -- and so the product-driven conversion engine underlies that growth in paying users and moving people efficiently along this user journey of starting to use Dropbox for free, but then bringing it to work and upgrading to an individual plan and then upgrading to a business plan. Our -- that engine moves people through that user journey at massive scale, and you've been able to see some of the progress, both on user growth and then also in driving ARPU. So connect -- upselling users to higher tier plans, moving people from individual subscription to business subscriptions. And then we still see a lot of opportunity there because the majority -- the vast majority of people using Dropbox at work, people using Dropbox for work at work are on either the free plan or an individual plan, and the experience is a lot better once you get people in teams. So that -- in the Dropbox Business products. And so optimizing that user journey is a big focus for us. We think there's a lot of headroom there given that most people are on these individual plans. And then as we continue to add -- there's all kinds of ways that we continue to add value to the paid plans. And you've seen a really steady increase in ARPU over the last or since IPO and even before that. And the conversion engine is behind that.

That's very helpful. We have questions sort of pouring in here in the Q&A. And so I just want to mention, I want to try to get to that in about 5 minutes. So we will be glad to field some of those. I -- before we do that, I want to go back to actually a survey we did of your customers. We surveyed hundreds of them about a year ago. We went back and looked at some of the comments or descriptors around Dropbox. It's reliable. It's easy and widely used. Good reputation. Quick and easy and secure. Ease of use. Easy access, no glitches. So this -- the word easy and ease of use were -- it was popping up just so frequently. And I feel like there is something that, at times, it gets a little bit overlooked. What is the design element that makes Dropbox stand out in that way? And how are you able to sort of balance the simplicity with the power and the functionality behind it?

Well, I'm glad to see those responses. I mean that's something we really care about. And I think I have to start in the DNA of your company and really valuing design. And so threading it through the culture, I mean, one of our values is keep it simple. There are all kinds of things you do from the cultural design and kind of the fabric of the company. But then, the next is talent. So one advantage of our scale and our orientation and brand is that we can attract really great design talent because it's really hard to make well-designed products without having the right -- without the right team. And then it's -- and then realizing that design is more than style or more than how it looks, it's how it works. And the combination of both the literal design of the user experience, but then all of the investments in the full stack from an engineering standpoint. So how do you shave down or how do you grow to this kind of scale? How do you make the machine learning algorithms work so that it connects you to adjust the thing you need at the right time? And then it's a relentlessess, like trying to find every little point of friction in the experience and sand it down. So I think that it has to start with an obsession and continue with the relentlessness and execution. And I mean, we're happy that it resonates, but we still see a ton of opportunity to improve -- to continue improving design of the products.

So Drew now, how is that funneling its way into the new Dropbox? I think this has clearly been a big topic that you sort of unveiled the new Dropbox last fall. How big of an engineering effort was that? And maybe for the benefit of anyone who's tuned in here who hasn't seen that yet, just how would you describe the actual app to someone who hasn't seen it?

Sure. Well, it starts -- it started from the observation that the way you interact with your files hasn't really changed -- hadn't fundamentally changed since the '80s, right? The way the operating system or the Explorer works on Windows or the Finder works on Mac, that experience was basically designed when your whole life fit on a floppy disk. And if you compare the 2 screenshots of the 1984 Finder to a 2020 Finder, there's not that many changes, right? It's a very single-player static list of files. So a lot of limitations to that, right? First it only holds files, so that's a problem in the modern world because a lot of your content is in cloud docs. And two is that singular player element. There's no people in that experience. There's no team. There's no integrations. And so those are the dimensions on which we want to improve it. And so the new Dropbox basically reimagines the Finder to be kind of a Cloud Finder that pulls all of your different content together so that your PowerPoints can live next to your Google Docs, and if you need to send something to a Slack channel, you can do that right from the app. So we've been maintaining a balance of keeping it familiar so that if you know how to use your operating system, you know how to use the Dropbox. But then extending the functionality so a lot of -- so that you can see other people, you can see your team, you can see all the activity that's been happening on file. So if I comment on something, you can see it. Sounds pretty basic, but the Finder does not let you do that. And reimagining that experience from the ground up to bring those things together. And so it was an enormous engineering effort, right, from going from supporting files. The file stack and the cloud stack are complete -- 2 different universes. And so bringing them together was a huge engineering challenge. Other products like OneDrive don't -- they only support files, they don't support your cloud content. And then taking advantage of the fact that we have this open ecosystem and we're platform agnostic. So we're not trying to keep you within a suite, we want you to use the tools that you want to use. And that's really resonated, particularly over the past couple of months. Engagement, weekly actives on the desktop app has been -- is up 60% over the last few months. Engagement with the Zoom integration, as you'd imagine, is up 20x over the last couple of months. And to be clear, we're very early in this evolution. We're still a lot -- there's still a lot of improvements on our road map that we're excited about. The first was moving out of the background, out of the operating system into a more engaging collaborative foreground experience.

Yes. From my perspective, it's a night and day change in the appearance of the product. It looks like it took a leap forward by a decade or more. And it looks like it has leapfrogged everything else that is out there. So I want to, and try to about a minute or two, to go to the questions that are coming in from the audience. But before I do, Ajay, I wanted to ask you about the long-term guidance framework. So this is something that happened just back in February, you surprised us positively this -- that with the target model that stretches out to 2024. And it includes a 28% to 30% operating margin and over $1 billion in free cash flow, which we've been able to kind of pencil that out separately and look at how you get there. And I'd say it conveyed to us that we're committed to showing you how profitable and cash generative this company is going to be, but it's also going to grow well, we understand, during that time. So I wanted to ask you, what prompted that move? And why are you looking at this, saying that now is the time to really let the margins explode higher like this?

Sure. Well, I would say, at a high level, we've always been focused on delivering a healthy balance of growth and profitability. That was a core component of our key messaging around our IPO a couple of years ago. And Drew and I want to ensure that we continue to strengthen the investment thesis that we bring to market. And so that was part of the impetus for us, refreshing those long-term targets last quarter. I will say that those long-term margin targets are reflective of the inherent operating efficiency of our business. And Q1 is a great example of that. If you look at the margins that we delivered this past quarter, 78% gross margin, record operating margin at 16.1%, our highest ever. Also, our first quarter of GAAP profitability, and we hit that milestone ahead of schedule, well ahead of schedule. And so certainly, the business is operating to these higher and higher thresholds on an accelerated basis. And so the long-term target is reflective of that path. And we plan to drive more efficiency beyond where we are today and higher levels of spend -- of productivity, rather, across each of our operating expense categories. So with R&D, we're being prudent with headcount expansion as we drive the adoption of the new Dropbox now that it's out there in GA and we optimize a lot of our team-oriented conversion flows. And then across sales and marketing, we'll focus our spend to both support the remote work and distributed work opportunity that's emerged quite quickly here as well as adoption of the new Dropbox. And as we execute, I would say, to these expense targets, this is not us reducing investment in our growth engine and product development. This is actually us carefully considering where we can drive material efficiency improvements across the business and preserving investments in the highest potential product and growth bets.

Okay. Well said. Now let me take a couple from the audience here. Has Dropbox explored allowing its free users to make their content discoverable, searchable and monetizable? In other words, recorded fitness, yoga, tutoring sessions, et cetera. Why let Vimeo or Zoom or others be the winner in this area?

So we certainly want you to make -- get the most out of your content in Dropbox. I'd say we were more focused on work use cases and consumer use cases like the ones mentioned there. But a good example of getting more out of your content would be our integration with HelloSign, right? So often -- as I said, often when you -- say, on a contract and you send that out for signature, being able to do that in a couple of clicks has been a focus for us. And then for monetizing free users, in general, we have to be a little -- we don't want to -- we don't plan to pursue it like an ads-type business. And our mechanism for converting free users has been to a subscription. However, we do envision building a broader portfolio of products and some at lower price points or the things that are add-ons are kind of unbundling so that we can get folks in and get them into the ecosystem with less friction or a lower hurdle.

Okay. Very helpful. The next one, is it possible to separate the value of file storage versus everything else in the Dropbox service? How do you parse it? Are there any metrics you could highlight along those lines?

Yes and no. I think, yes, because we are driving more collaborative engagement. And so adoption of our new desktop app is probably the best measure of that. We also talk about our integrations in our ecosystem. And for example, there's new Dropbox Business teams that link another app, both convert and retain at higher levels. I think convert it and get twice the level of teams -- or sorry, they retain and upsell at higher levels. And so -- but in another sense -- when I say no, it's hard to separate. Part of that is because it's an evolution from FSS, and what we're doing is an evolution from FSS. Because we find our customers still have files, files aren't going away. But they also have cloud content, and there's this new need to be able to organize all of it. And Dropbox is the only way to do that in a platform agnostic way that's also a native experience. So it's still -- our goal certainly is to be just as valuable to our existing FSS customers as we were yesterday, but be able to layer on a lot more value by also helping you organize your cloud content. And whether you're like, 90 -- or whether 5% files or 95% files, supporting you through that whole spectrum. And so we don't really separate those things because it's more of an evolution than a shift.

Okay. The next one that's coming in from the audience is talking about LogMeIn reached a similar point in its life cycle and forced its installed base to paid. So I guess this is a question about the other 580 million registered users' accounts. Have you considered this? How much could it expand your paying subs?

Well, so we are certainly -- we put a lot of effort, and we made a lot of progress in monetizing the space, and I think there are things that we'll continue to do to accelerate that. So we have a huge asset in our free installed base. And then there's a trade-off between -- on the one hand, having a free version is a really inexpensive and scalable form of customer acquisition, and virtually all of our paid customers start out as a free user. So there's a journey that they progress along. And there's a trade-off between that -- and then the size of the network -- the sharing network also has benefits to us. So even if you're not paying, you might be sharing with someone who does upsell. And so there's a trade-off there between engagement and monetization that we tune pretty carefully. But certainly, we still continue to see a lot of opportunity to upsell both the free base, particularly the people who work. I think the way we see it, like, perpetual free use of Dropbox at work for a work use case, it doesn't make a ton of sense compared to eventually migrating to a paid product. I mean, often, these are people who are knowledge workers. They're using it for work, can afford it, in many cases, they're expensing it and not even paying for it. So I think we're going to -- we will -- we have a gentle but firm shift from perpetual free use of Dropbox at work to getting into our paid plans, and we're in the middle of that process now.

So I would say -- appreciate the insights on that. I would say that, that balance is working well. We saw that in your strong Q1 results last week. And really showed resilience in the business model against the backdrop where, I'd say, the typical software company has had a lot of challenges. We are wondering, coming out of that, what gave you the confidence to provide guidance, so not only for Q2 but also the full year? And in fact, to really reaffirm all of it in constant currency terms, whereas, again, many other software companies, they're doing some combination of a guidance reduction or guidance withdrawal. What was providing the confidence there?

Yes. I'm happy to provide a little bit of context and then let Drew chime in. I would say the confidence really comes from the resilience of our core business, and that's something that, as you can imagine, we keep a very close eye on. And we saw a lot of resilience from Q4 into Q1 and from that pre-COVID period to the post-COVID period and in the weeks and days heading into our earnings call. And so that led us to maintain our annual guidance net of currency and interest rate movements introduced by COVID. And I will say, while we're seeing these encouraging top of funnel trends that we were speaking to earlier in this fireside chat, it's still early, and we do remain mindful of the broader macroeconomic risks and unpredictability of the second half of the year may bring. And we've run a number of sensitivities internally to conservatively account for some top-of-funnel uplift relative to macro-driven retention risk across the second half of the year. And those outputs led us to maintain our previous revenue guidance range on a constant currency basis. And probably the final note I'd make is if you look at our overall customer segmentation across individuals, SMBs and the larger enterprises and organizations that we serve, the vast majority of our users, over 80% use us for work-related use cases. And content is really critical -- business-critical for these knowledge workers, regardless of the kind of company or the size of company that they work for. So our ability to provide a tool in this environment that enables distributed work has really been key for our users and for our customers.

Yes. And actually, Ajay, we saw that in our survey work. We saw that percentage of usage relating to work. So it was nice to be able to kind of confirm that in our own survey work. I think, still, it's still the biggest question we get is, given the SMB exposure that you have, and I think we all know SMBs are under pressure, why did we not see that pressure in your Q1 results? And why do we not see that pressure in the guidance going forward?

Sure. I can start. And then, Drew, I know you shared some thoughts on this on the earnings call and in the Q&A as well. And I think this comes back to the fact that we are serving the world's knowledge workers. And the world's knowledge workers are our users. And over 80% of our install -- our subscriber base is using us for work and at work for a variety of high-value use cases, and we're business critical to all these companies. We're performing a really, really important role that's been amplified and magnified in the current environment with this accelerated shift to remote work and remote learning. And we're serving segments of the market that have been less directly impacted by the global crisis that's underway right now. These are folks that have shifted their work from what's been in person at the office to remote and distributed at home. But these are knowledge workers. And so not necessarily the mom-and-pop retail shop that's had to shut their operations for the time being.

Yes. Building on that, again, we have customers of all sizes and a really diversified customer base. And every business has content needs to collaborate around it. And that's even more -- that need is even more acute in this environment. And we've seen -- I think it's too early to tell exactly what the impact of COVID will be on our business or any business, particularly given that no one really knows what the macroeconomic environment will look like in the second half of the year and beyond. But we've certainly seen favorable trends like record demand for Dropbox Business. So trials for Dropbox Business are up 40% and engagement is up. And so a lot of leading indicators we pay attention to are positive. And -- but that said, I mean, I think a lot of the impact -- the negative impact to COVID on our customers in the broader world is yet to be seen. And so I think while we're relatively insulated from that, Dropbox customers tend to be knowledge workers, tend to be even in SMB, they tend to be people who can continue to work from home. It's something we're going to be monitoring closely.

So we probably have about 30 seconds left. Let me take one last question from the Q&A. How long would it take you to get to about 50% adoption of paid users for the new Dropbox?

So we -- when we look at the new Dropbox, we have adoption. We're not charging extra for it, so I think that's one thing. It's an evolution of our core product experience. So anyone who's a Dropbox user has access to the new Dropbox. And we have adoption in 350,000 out of our 450,000 business teams. So the migration is well underway. And when we see the new Dropbox as serving the business on a number of dimensions. The first, much more modern and engaging experience solves a lot of the new challenges that our customers and all of us have been experiencing, the need to pull files and all their cloud content together in one place. And just going back to Teams and Slack, it's also a different use case. So Teams and Slack are places where you might communicate. It's oriented around channels and chat. And Dropbox is really oriented around pulling together your content and the collaboration around it. And there are complementary experiences. So we partner actually with both -- we have integrations with both products. And the Slack integration in Dropbox is really popular in both directions. And we find it often, a lot of what you're talking about in a Slack channel is content that lives in Dropbox. And so often, I think it's -- we're not really on a collision course with either of those products. We partner with them. They're actually both partners and complementary experiences. For the same reason, like Gmail doesn't really compete with Word or Google Docs doesn't compete with Slack. Like one is around content, one is around communication. So that -- I think that's an important detail. But we're certainly continuing to be focused on finishing the migration. And the foreground surface also gives us a lot more levers to accelerate that conversion engine we were talking about. Because when we're limited to the operating system, we couldn't show you something like Dropbox Transfer, right, because we didn't control that surface. But now with our own app, we can customize that experience to, both make the core workflows more seamless, but then also connect you to functionality that's available in paid plans or even singly to let you know that there is a business product. So it gives us a lot more degrees of freedom on that dimension, too.

Thank you for sharing all these insights that you've shared with us. A lot of great takeaways. Congrats on the business model resilience that you've been showing and the vision that you have. And we're up to the end of the allotted time. So just thank you very much for carving out the time with us today.

Appreciate it. Thanks, Mark. And I hope you're all staying safe.

Likewise. Take care.

Thank you.