Flywire Corporation (FLYW) Earnings Call Transcript & Summary

Good afternoon, everyone. Time for our next session. I'm Ashwin Shirvaikar. I'm Citi's payments analyst, and it's my pleasure to introduce Flywire next. And from Flywire, we have Mike Massaro, who is CEO; and Mike Ellis, who is the CFO. And I was just saying to Mike Massaro that other than me, over the last 12 years, he's the guy that has been to this the most. So thank you very much. I think you've probably come 10 out of 12 years.

Probably, yes.

Right. So all different parts of the journey, so fantastic.

I was really glad he came today because it had me listed as a speaker. And I was like I don't think that's right.

Yes. I always like to start with a level set question with all of these sessions for the folks that don't know Flywire in the room, maybe spend 3 minutes just go through who you are and what you do?

Sure. So Flywire sits at the intersection of payments and software. So we've often talked about, if you think of your personal life, think of the evolution of e-commerce, I think the evolution of point-of-sale, can tap and pay in all these places now. You can purchase too many things, probably online and e-commerce with streamlined payment experiences. Our belief was always that there were huge parts of the global economy that were poorly digitized. Oftentimes, it correlated with industries that had kind of been left behind by existing payment processing solutions. And we have a core belief that with software in these complicated transactions and our own proprietary payment network that we can digitize these industries in a similar way to what has happened in e-commerce and in retail. So Flywire is used by some of the top educational institutions around the world for tuition payments, everything from higher education to boarding schools to language programs, vocational schools. We're used by a number of the top 10 hospitals in the U.S. for patient billing. So post insurance being applied out-of-pocket spend by the consumer as that shift happened in healthcare, most of the billing and invoicing capabilities that existed to directly engage those payers didn't exist. And so that's a second sector for Flywire and then we expanded into our travel sector. So whether you're traveling abroad with your family, maybe renting a vacation home, a trip to Italy or Spain, African safari, going heliskiing with friends, it's a good chance to use Flywire to make that payment. And then most recently, we announced that our fourth industry is B2B payments. So as you look inside business payments, we believe there's an opportunity, again, coming from the accounts receivable side to help our clients get paid to really digitize B2B payment flows. So a whole number of clients in the insurance sector, tech sector, manufacturing, all good examples of where we have clients in the B2B sector. And so what really differentiates us outside of that vertical focus is the fact that we have software that is purpose-built for the industry, sitting between our clients as a record and their payer, a platform that's shared across all industries for shared services. So things like make a recurring payment to a currency conversion, send a notification, all done at a shared platform level, so we're not replicating it in the industries. And then probably the most unique is our global payment network. So it took us over 12 years to build. It is an accounts receivable oriented network, 50-plus bank accounts around the world, direct acquiring relationships with Adyen, FIS-WorldPay, First Data, Fiserv and then direct relationships with folks like Alipay, China UnionPay, American Express, PayPal, PayPal and Venmo acceptance, pretty much all the ways in which our clients' customers want to pay them we have as part of our network. And so that's a bit about us business profile about 1,000 employees, FlyMates across the world, 40 different nationalities, 30 languages spoken inside the company, headquartered in Boston, Massachusetts. Share the financial profile, maybe...

Yes, sure. So we view ourselves as a 30-plus percent top line revenue and adjusted gross profit grower. We've got excellent unit economics across all of the payment methods and types and revenue streams. If you look at our Analyst Day packet, we've been doing that on an adjusted EBITDA profitable basis for the past number of years, even during the COVID year. And we expect to be able to continue to do that in the future.

Great. Okay. And I know that most investors do start with the deep dive on Flywire on a verticalized basis. But I did want to spend a little bit more time on your payments network and your platform. Starting with why did you build your own, right, because you didn't have to?

Sure. Yes. I wish we could have found one to borrow back then. So 12 plus years ago, a few things we noticed. And today, I'm sure many of you notice tons of different white label networks out there. Everybody has a network, you can use or borrow. What we found back then, and frankly, very true today as well, not all networks are kind of created equal. First, the vast majority of networks are AP-oriented, so they help you kind of make payouts typically from major markets to more minors and exotics in an AP format. As I explained in our business model, we're helping our clients get paid. So our job is to make them able to collect money in many, many places around the world. And so the network is kind of inherent and reverse from what is out there and predominantly available. The other thing we realized is our flows were actually very typically large transaction size, average Flywire transaction, it's thousands and tens of thousands of dollars. So it's a large transaction. And there's a certain level of, I'd say, importance of that transaction to our clients and our clients' payer. And so by losing visibility or losing control of how the money originates, you're effectively trusting a third-party network with low-risk, high-value, heavily important transactions. And so we quickly realized to open up many of these markets around the world, it would be better if we own the endpoint network. Not only the end point of where we're collecting from in a given country, but also the endpoint settlement to our clients. And then as we added multiple industries, we started first in education, it became clear that it was this strategic asset. In many ways, we work with some of the top banks around the world, including Citi and many others to really have this entire clearing network that is set up on the AR side. And so if you can imagine someone who's getting paid, maybe they send business invoice overseas, maybe they sent it to a place like Singapore. The minute that payment hits our Singapore account, the business sees and has almost verification of that payment hitting and fully reconciled to the invoice that they sent. Same happens in all our industries. So having that network and being able to go into a client and say not only do you have software that solves the pain points that you need to help collect funds, but we're actually taking away all the complexities around the business relationships you just have to manage as well. You don't have to go find your acquirer or don't have to go negotiate with someone like American Express directly. Flywire comes in and really clears all the banking payments and all the other payment methods with one solution.

Okay. Okay. And one of the themes of this conference is sort of bank fintech partnerships and relationships. You have multiple bank relationships. What do you do versus what does…

Is that better?

Yes.

Maybe user error.

Cool. I'll speak louder. Oh, now, we got this. That's fantastic. So what I was going to ask you is, what do you do versus what the banks do?

Yes. So for us, one of the key parts is to really think of the software and the payments together, right? The value that our clients see is the value associated to us actually solving their pain point, right? Like I often say our clients aren't experts in payments, right? They want to run a university. They want to run their business. Maybe they're running a hospital, right? And they're typically in the finance function. And so when they think about that challenge, they're often limited in IT resources. And then there are also, as I said, not an expert in payments, right? So when it comes to things like we take for granted of different clearing routes with different payments from around the world and settlement times and interchange rules, that's not something our clients are experts in, nor should they have to be. So by coming in with industry-leading software and the banking and the card processing infrastructure, right, you really have the ability to solve the whole problem for the client. And they get to go back to kind of running their operations. So when you think of how the banks kind of complement us, they're obviously underneath that infrastructure, right? So our Flywire accounts held at those banks, they're fully connected into that payment platform I mentioned. So that allows us to automatically identify, reconcile and process, convert currency if needed, those payments from around the world. So that's kind of a complement between the...

Okay. Yes. Just in terms of just the -- before close, could you give like an overview of the relative sizing and importance and you presented, obviously, a few months back, some information with regard to that -- with regards to both international as well as domestic within education. So what are the different pieces? And if I was to look at those pieces, say, 3 years down the road, what would you expect?

Sure. I'll start and then Michael I'm sure jump in with a bunch of really helpful numbers. So first, if you think of where we started, I mentioned education. We actually started in 1 country with 1 product in education 12 years ago. So we were helping with cross-border tuition for U.S. universities. Since then, we expanded into a whole suite of products, allowing us to process all the payments on a given campus. So a few of our notable clients we've talked about, folks like UBA, Stanford, Columbia, just selected Flywire where we announced on our most recent earnings call, Texas A&M, where they've actually standardized on Flywire technology, not just in cross-border, but in domestic payments, managing all their payment plans. Some even choosing to manage pretty much all the digitization of payments, could be parking tickets on campus, could be homecoming tickets, all of those things, all facilitated through Flywire software and solution. If you look across -- that's by far our biggest industry that we also have clients in over 30 countries in education. And so we've -- first 7 years of the company, that was our only sector. So as you'd imagine, it's the largest. And then healthcare, our second largest, if you look at that industry, it's heavily U.S.-centric. Again, it's large hospital systems in the U.S. who have this growing problem about revenue cycle management and patient receivables. And then our 2 emerging verticals, as we've talked about them before, both travel and B2B. The size of travel I've kind of said if it was a separate entity, it would be out there looking for a growth round and probably even completing a growth round even in this environment. So it's kind of an emerging but -- getting to be a sizable business. It really focuses on 3 subsectors of travel: accommodations, luxury tours and what are called destination management companies. So again, those are more destination-based -- I think of them as destination-based travel organizer. So if you've ever made a trip to Iceland or Spain or Italy and had somebody organize that trip for you, that's a good example of what a DMC or a destination management company is. And then in the B2B sector, as I mentioned, lots of subsectors, things like tech, manufacturing. It's by far our most emerging vertical, but growing quite rapidly from a low basis. And then Mike can cover a little bit how that wraps into the financials and global distribution.

Sure. So first and foremost, we look at our revenue in 2 categories: transaction revenue and platform and usage base fee revenue. Transaction revenue is a cost-plus model. It's predominantly cross-border and it's predominantly made up of our education, our travel and our B2B segments. And on the platform and usage-based fee, that's predominantly a software services model, but also a usage-based fee model. And that's predominantly our domestic business, but also predominantly healthcare and education. Those are kind of how we think about the business. And the reason we do that is because our entire infrastructure is a shared service model, whether it's the compliance, whether it's the network, whether it's the tech stack, it gets shared across these full verticals, but also can be expanded across any other vertical that we decide to go in. What we talked about during Analyst Day is that essentially, we went from predominantly an education U.S.-based business back in 2016 where U.S.-based institutions probably represented nearly 80% to 90% of our business at the time to our 2002 financial plan, which is also shared in Analyst Day, where now 47% of our revenue was from education clients outside of the U.S. 27% of the revenue was from education clients within the U.S. And then rounding out the 79% our education business represents is our domestic offering, which is predominantly U.S., but can also be utilized in other geographic regions as well. Healthcare then makes up to 15% and then our more nascent verticals travel and B2B round out the 100 with about 5%.

I think that most investors understand what you do or what you did in education. But how is that business changing in terms of where you're going with some of these newer clients, are the newer geographies you're getting into different in terms of go to market? Could you talk about that?

Sure. I think part of the beauty of our business is that you have multiple growth trajectories, right, and levers really. And so if you think of the 4 industries we're in, the way we go to market with our sales and relationship management, marketing efforts are all vertical focused, even though they have the shared platform, shared network infrastructure. And so you've got this kind of amazing ability to grow the verticals. But at the same time, those verticals have many, many geographies you can also expand to. They have additional products you can launch to drive more value to the client. And so if you have those combination of levers, that's what really gives us kind of the confidence in growth. So within education, as an example, we've gone down market into different subsectors. I mentioned boarding programs, language programs. And also, we've gone from one country to over 30 countries where we have clients. And that's a similar model and then also layered in new products, right, to drive more value. So that's the similar kind of pattern to expect from us, done similar things in travel, as I mentioned, 3 subsectors, really one core receivables product, but some additional products we talked about at Analyst Day coming out in the future. And really that ability to invest in go-to-market, also the financial profile, not only the unit economics level, is pretty spectacular for us. But also, when you think of how we're acquiring business and how quickly that business can deliver revenue for us. Flywire can often have a payback period within the first billing cycle on our entire acquisition cost of that customer. And these are typically multiyear relationships. So 3- to 5-year typically long-term relationships. So that gives you a bit of a profile. So we're always looking for ways in which we can expand within an industry, go into new subsectors and yet at the same time, we're a business that's proven the ability to really go global in our distribution and therefore, go out the total addressable market that is a truly global number.

Okay. And one of the key inputs in here is obviously, why do you have a growing domestic business. It is the flow of international students. So could you kind of talk about the trends there? Obviously, on the recent call, you mentioned China as a factor, but also India as a countervailing factor. And what sort of visibility do you have into that flow?

Sure. Yes. So the product -- the first product we had that cross-border product, obviously, it's influenced by the number of students studying abroad outside their home country. Those students will go to many places. U.S. being the #1 destination market, about 1 million students per year come to the U.S. to study in higher education. And the origination countries is another aspect of that, right? So students -- the top 3 origination countries in the U.S. aren't necessarily the same as the top 3 origination countries of students going into the U.K., for instance. So you'll have this kind of mapping of origination countries and destination countries. One of the trends that's happening since the pandemic is international student enrollment numbers were turning back to pre-pandemic levels. That happens both at the origination where the students are coming from and also the destination side. So to give an example, Australia, for instance, in New Zealand had some of the tightest lockdowns in relation to COVID policy. So as those schools have opened up, as you'd imagine, more students will return back to those regions. Likewise, in certain countries where it's more challenging potentially to either get out of the country through cost or COVID policy or whatnot, you'll have -- students have yet to really return to studying abroad. And so you have numerous markets, China being one that we recently noted, where the numbers actually have decreased on the students, but that capacity, that demand has been taken up by other countries, including India. And so you'll see a dynamic shift of where students are coming from and where they'll be going to. But one thing we've highlighted at Flywire is we have a global distributed business. So we've got clients in many of those countries where students are going to. It's much less about who's coming from where and where are they going to and whether the international student numbers will continue to go up. And so if you look at the last 2 decades, it's been about a single-digit growth every year minus the COVID impacted years in international student numbers for the last 2 decades. And so we expect that trend to return as things normalize here over the next probably 6 to 12 months.

I think at the Investor Day earlier this year, you kind of pointed out your view that even in education, you can be 5x to 7x larger than you are just by penetrating existing clients. And then the first thing that investors do, obviously, is look at the list of colleges. I'm sure that's a very comprehensive list of colleges already. So could you explain the 5x to 7x?

Sure. So another data point from our Analyst Day within the existing Flywire client base, there's 5x to 7x more revenue just by using our existing products today and fully penetrating those accounts, right? So it's a huge data point. Obviously, it's a huge part of growth. You can also see, if you look at our 3-year net revenue retention number, you can see that consistent history of our ability to keep growing our existing client base. And it's really happening from growing geographic footprint, right? You may get 1 campus or 1 hospital group in 1 state, you can expand into another. You may get the undergrad program and then get the grad school and then get the law school. And you can also add more products over time. And so you may get their cross-border products to start, you can then add payment plans, maybe you're then getting the domestic payments, maybe you're getting all the e-store payments on campus. And so those are all different levers we have to grow into that revenue number in our clients. And it's what gives us such confidence about the future. Within a given year, there's actually a very small amount of revenue that can actually be delivered from net new business, right? So that pipeline of client signs from last year, those going live really deliver subsequent years revenue. And so we have lots of visibility into the pipeline creation, the signs, the go-lives and then the revenue ramp that comes from that because again, we're attached to an invoice we're attached to payments that are pretty defined in quantity and pretty reoccurring in nature. And so that's kind of the cornerstone of the model and what gives us such confidence in our ability to keep growing and expanding at those existing clients. Anything to add?

No, it's great.

Mike, you did talk about overall monetization is a particular one of those types of monetization more prevalent in education.

Well, given that education currently is predominantly a cross-border business, then you're going to have the monetization similar to what we see in our transaction revenue stream. And those monetization rates have been relatively flat. But on an overall basis, what we're particularly proud of is that over the past 8 quarters or so, the spreads have remained stable. So regardless of what happens in the monetization rate. And again, that monetization rate for us is really just an output based on the choice that the payer is making in that environment. And if you think about it, if a payer chooses to use a credit card under our revenue model where we have to gross up for GAAP purposes, that modernization rate will be exceptionally high. The adjusted gross margin won't be as attractive, where under a bank transfer, you'll have a much lower monetization rate but a much more healthier adjusted gross margin. So we don't necessarily solve the monetization rate. We're really solving for adjusted gross profit dollars generated, but that's what you'll find in the education business.

Okay. Okay. Got it. And given this is the more established business. Should one assume that this is the business that drives your near-term profitability goals?

Yes. I mean I think for us, we see it as an asset to have the multiple industries, right, and the confidence of that. I mean if the education business is a hard business to keep up with. It's obviously where we started. It's still growing quite rapidly, and it's quite large. But we see it as an asset where we've proven our ability to go global. We can leverage that platform investment and that network investment into these other verticals. So even standing up a new vertical, right? We think of us as only having to build the vertical software and go-to-market piece because we have the inherent capabilities in the platform and in the network. And so we're investing equally at 4 kids. I always say I can't pick my favorite kid. I can't pick my favorite vertical either. So to us, there's a benefit of having all those industries because they're huge total addressable markets, nearly $12 trillion across the 4 of them for Flywire, and we're still single-digit penetrated. So the way we invest in them, the way we share that at shared platform and that shared network, we think, is a pretty unique differentiator, but...

Okay. Okay. And then just moving to the second largest one, healthcare. In terms of sort of what you bring to the table here because healthcare in the U.S. is just kind of ridiculously complex and solving -- are you solving specific problems, are you trying to essentially take cost out for your payer clients? Is that what -- provider clients?

So most of this room probably has dealt with U.S. healthcare at some point recently. Last few years, there's been a huge shift, right? Insurance is covering less and less of the payment. There's more out-of-pocket expense paid by the consumer. And if you've ever had one of those invoices show up or like me many, many invoices show up at your house, what looks like a bill at the bottom will often say, this is not a bill, but it looks like a bill, says amount too. That's kind of the experience, the legacy experience that's existed inside healthcare. And so as there's more out-of-pocket expense, really, the hospital system only had one point to get you to pay, which was the checking out of a hospital or checking in. And so they really have to develop their whole set of billing infrastructure and how to engage those consumers in a scalable way. And so that's really where our software sits. So we sit between the EHR, something like an Epic or a Cerner, a system of record that has the majority of the patient data. And at the point in which a patient is billed, Flywire is involved to share not only that information, but also to communicate via e-mail, via text and then capture that payment experience. The other part that's really interesting is that it's not just a onetime payment, right? A lot of hospitals to get paid have been becoming more flexible on their payment terms, so allowing someone to potentially with an unexpected $1,000 bill to maybe split it into 3 installments. Now this is not a financing effort in any way. It's really just the hospital extending different payment terms through our software to the payer. And so our software is really handling all interactions, all payment experiences, which kind of look like a checkout experience for a bill pay. And we're doing that again across system and across all different types of services or practices for that hospital. So that's really the dynamic that's underway in healthcare. There's also a ton of consolidation happening inside the healthcare industry, so you see hospitals kind of acquiring each other. You're seeing roll-ups being done in the healthcare space. I live around Boston. I'm sure pretty much everywhere you're seeing the big hospital brands come further and further out into the suburbs by acquiring certain types of patient out of service kind of procedures and kind of expanding their umbrellas a bit. And all of that is really a positive trend for us inside healthcare.

Yes. The only thing I would add is, as hospitals become more reliant on patient payments versus insurance payments, it's really important to make it an affordable solution. And then the other side of it is that when we're talking to the CFO office at these hospitals, they've got more responsibility to improve their day sales outstanding. So we like to think of ourselves as being on the strategic side of that cash conversion cycle on behalf of the CFO.

Right. And is there a non-U.S. opportunity?

We do have some clients outside the U.S. in our healthcare business. I mean there actually is -- you have different types of healthcare policies around the world by governments. I would say there is a growing trend around more out-of-pocket expense at a broad level. In many markets around the world, if you want either urgent care or if you want specialty care, there's still some out-of-pocket spend component to it. So it is a potential future for us for sure.

Okay, okay. And one question that does come up is with regard to Cerner and Epic, right? Why can't they expand into what you're doing? Why would that be so difficult?

Yes. I mean as long as payments have been around, you can go back to many, many back-office infrastructure vendors or software vendors. I think the back office and running a hospital and all the complication that goes with software around scheduling and patient records and all of that. We've seen a similar trend in student information systems, ERP systems, where, again, there's a lot of complexity in that software, right? And very few companies have been successful and then bridging that to an end consumer solution, not to mention getting into all the money movement, all the regulatory aspects of payments. And so again, that's been the challenge. What we try and do is we try and sit there and be the best at integrating into those platforms, having a number of deployments with those platforms and knowing that that's how we get integrated in these enterprise environments. So our general feeling is those folks have their work cut out for them and digitizing whether it's hospitals or businesses or universities. And that's a space that -- we always say we're not going to get into software to run a hospital or run an educational institution or run the business. We're really going to put software around that financial transaction to really help streamline that accounts receivable process. So we think that's a strategic spot to be. And for someone to kind of replicate that requires they kind of get all that payment stuff pulled together, right? And remember, we're pulling the business part of the relationship away from the client, right? When you think of how most software and payments we bought historically, it was go pick the software, go pick your bank, pick your acquire, pick your third-party payment methods, have your IT teams or some system integrator connect them all. It's a big difference when you get to pick the software around the financial transaction that already has payments embedded, right? It takes a lot of work, business work and technical work away from the client.

Talking about macro is one of the very common questions that comes, not really a surprise. The way I'm kind of looking at it is in most normal downturns, if there is such a thing, you know education and healthcare should be relatively acyclical, right. Pandemic aside, it was kind of weird. And the other 2 are cyclical. Would you agree with that or how are you thinking of downturn, downturn planning?

I mean for us, I mean, our business has been around 12 years. We ran an education, healthcare and travel payments company during a 2-year pandemic, came out growing organically and EBITDA profitable. So we feel like we've weathered quite a number of storms and done so pretty well and showing we can run a good business. Yes, you're right in saying education and healthcare are notoriously defensive sectors. We often get a question around inflation. I mean, obviously, we don't control pricing of the services that our clients invoice through our platform. But as those costs go up, obviously, there's some intrinsic benefit as Flywire is getting oftentimes paid in accordance to some of that average transaction size. And then just in general, the multiple levers for growth that we have, we haven't talked a lot about how we're acquiring customers, but we're actually exceptionally efficient in how we acquire, right? So if you look at a lot of other companies that have to really spend to acquire, we're going really deep in these industries, right? And our teams have built their careers in these industries, right? So we're selling into these environments, not through some high-cost digital acquisition strategy. And these are long-term relationships. So we think those are all -- position us quite well, right? Our biggest cost item is our hiring is our people cost. And that's really about how much we want to invest in growing and scaling our business or innovating new product. And that's something obviously we control. But we feel really fortunate to even be navigating challenging times quite well and increasing EBITDA to margins even in difficult times.

In terms of just travel, I mean all of the examples you gave are obviously experience travel. It wasn't you and me flying to Chicago.

No.

Not that flying to Chicago can't be an experience, but is there something about that and that market opportunity that you kind of feel is particularly appealing the reason why it's growing so fast now?

Yes. I mean I think it's a combination. I mean, most of us were locked in. Our houses are in a very short radius for a long period of time. And so I'm sure many of you and people around in your social lives have started seeing the world again and doing more travel. So I think there is a trend around more experience-based travel, and that's really where we often fit. We're not in business travel. We're not going to be the one that's competing for airline e-commerce transactions. That's not our business. We focus on businesses that typically have high transaction amounts and then have poor digitization. So when you think about a company, use Nordic Visitor, it's one of the top destination management companies in Iceland, they built up a business as one of the top companies to organize trips to Iceland, right? They were dealing with all types of different vendor relationships. They were dealing with all different types of geographies that they were supporting, including the Nordics. So they exponentially had all these relationships, and they had to string together their own solution around bank payments and card payments and international wires, right? And so if you think about someone like that growing their business, going with one vendor to streamline that entire process, engage payers from all over the world, that's something that can help streamline and simplify their business. And at the same time, they're focused on increasing their business for how do they get more travelers to come to a place like Iceland. So we try and really deliver software that helps our clients focus on how do they grow their travel business as opposed to, how do they operate in the back office.

Okay, okay. And a lot of the companies that came public and raised capital, they haven't necessarily deployed that capital. You guys have been doing M&A and so on and so forth. Talk a little bit about your M&A strategy, about the attributes that you look for criteria you look for?

Sure. So we've done, most notably 3 transactions: One is a private company, 2 is a public company of substance. And the 2 companies that we have done, both in the education sector, just by chance, not by plan necessarily. So we're looking across sector for potential acquisitions that fall into 1 of 3 categories, something that can accelerate our industry or geography that we're already in, something that can add additional capability that can help drive net revenue retention, effectively allows us to upsell a new capability to an existing client or third, probably a little less likely do we expand into a new geography or a new industry that we're not in yet. So that's really the 3 pillars of M&A strategy. We've executed out of the 3 I mentioned, to fit the first one and one fit the first one and the second one, actually both quite well. And we think we're good at identifying, negotiating, executing and integrating companies. I'd say this environment is a little more unique, right? I think you don't quite have private valuations adjusting quite as much as public have. So I think everybody is waiting to see how that is. But it's -- we feel good on the 2 deals we've done as a public company. But at the same time, we're quite patient, deliberate in M&A strategy.

Private versus public, we'll find out in the last session of the day.

Okay. I'm going to show up and find it too.

Absolutely. Back to profitability before time runs out here. If you could talk about what the biggest drivers are, what gives you confidence? And in the call back after earnings, you mentioned a couple of things that the level of quarter-to-quarter control that you can exercise and some of your biggest costs, I think it's worth repeating. If you could talk about that?

Sure. I think first and foremost, what's going to drive the adjusted EBITDA contribution is going to be our continued revenue growth at healthy unit economics. That aside, and of course FX has had an impact on our revenue and adjusted EBITDA during Q3. But on a constant currency basis, we're really pleased with how the company has grown. When you get further down into the P&L, the majority of our cost is really our people cost, right? So Mike and Rob can put together a strategy to either pace some hiring or to decide to put off some hiring, but we've continued to hire during a pretty tumultuous time over 2022 and done it in a strategic way that's, first and foremost, go-to-market and expanding the product set that we have to drive revenue. We've got a view into '24 and '25. That's what our investment thesis will be coming into '23, but I want to make sure that everybody sees us as a disciplined management team that will focus on profitable growth in the near term.

Well, with that, I think, thank you very much for your insights. Really appreciate you being here. Thanks.