Snap Inc. (SNAP) Earnings Call Transcript & Summary

Welcome, everyone, to the next fireside chat presentation here at the 30th Annual Goldman Sachs Communacopia Conference. For those who don't know me, my name is Eric Sheridan. I'm Goldman Sachs' U.S. Large-Cap Internet Equity Research Analyst, and it's my pleasure to host Evan Spiegel, CEO of Snap, for our next fireside chat. Evan, hope all is well, and thanks for joining the conference this year.

Hi, Eric. It's great to be here. Thanks so much for having me.

So I want to jump right in. You've hosted a number of events over the last 12 months, including the Investor Day in February, the Partner Summit in May where you articulated your vision for the future. At a high level, can you revisit some of the key takeaways from those events, including how you see Snap evolving over the next 3, 5 and 10 years and how you're positioning the platform against that evolution?

Absolutely. Yes. It's such an exciting time for Snap. And I -- actually, we're turning 10 years old this week. So interesting to reflect on everything that's happened over the last 10 years and really the transformation of the camera. So 10 years ago when we first started our business, people were only using their cameras to save important moments. And they keep them in their camera roll or maybe print them out and put them on the wall. And we identified this opportunity to use the camera to communicate that people could share photos back and forth all day long and videos to express how they [Audio Gap] in the moment with their friends, and that has totally transformed the role the camera plays in people's lives. And so instead of using the camera just at a special event or something like that, people are using it all day, every day with their friends to talk. And so if we look at the last 10 years, that's really how the camera has transformed. As we look at the next 10, we believe that the camera is going to transform from being primarily now a way of communicating to an augmented reality platform. And that's a lot of what we're investing against and working on, and there's already hundreds of millions of people using AR on Snapchat every single day and hundreds of thousands of developers and millions of these AR lens experiences. And so what we're so excited about is that over time, AR is becoming not only something people used to express themselves and add to a snap that they're sending to their friends, but increasingly a utility used in commerce or used in visual search. So we can, of course, talk more about that. But I think as we look at the next 10 years of Snap, we're really, really focused on this opportunity around augmented reality. And of course, we've also been able to take other products that we've invented and turn them into platforms as well. So we not only have this AR platform in our camera, but of course, the communications platform with Chat and Minis, which are a little mini applications that live inside Snapchat. We have a map where people can see what their friends are up to and now businesses can also make themselves seen on the map and create layers that add new functionality like buying tickets to live events directly on the map. We have our stories platform, of course, where friends and now publishers and content creators create video content for our community and Spotlight, where creators can share their videos with the entire Snapchat community. So I think it's really exciting as we look at the next 10 years is that we've got this big opportunity in AR, but also these other platforms that are already thriving and very quickly becoming businesses.

Great. Can you discuss recent user engagement trends on the platform? Maybe both as COVID-19 stay-at-home restrictions start to ease in some parts of the world, but then more recently we're seeing reopening has started to go backwards in other regions of the world. How might this trend go forward over the next 12 to 24 months in your view? And how is your management team positioning the platform given some of this uncertainty?

Well, the COVID lockdowns have definitely been challenging for us from an engagement perspective. As you might imagine, people meet fewer friends out in the world. They're making fewer plans to hang out. There's less exciting stuff to Snap when you're just sitting at home staring at your computer all day long, and so that impacts things like story posting. Of course, our map, which is way for people to see what's happening in the world and go meet up with their friends, is less useful when everyone's just hanging out at home. And so that's definitely been a challenge for us. I think in some ways, it also highlighted the strengths of our platform, which is that it does -- Snapchat really helps bring people closer together with their close friends and family. So during the lockdowns, being able to send videos and photos back and forth and see what your friends are up to was really valuable. But the engagement impact was definitely varied across these different parts of our service. I think the good thing is as the lockdowns are reduced and people are out and about and back to school in person, we definitely see improvements in some of the metrics that are most important to us, including things like story posting or usage of the map. So that's been really exciting. We're optimistic about that, of course, delta variants notwithstanding. But we're looking forward to maybe a post-lockdown future.

Great. Okay. I want to turn to competition. Maybe I can get your views on the competitive landscape, both from a user growth engagement standpoint as well as an advertiser standpoint. And how has that competitive landscape evolved over the past 12 to 24 months, maybe brought upon by COVID to some degree? And how do you think it will continue to evolve in the future?

Well, I think one of the things that's so interesting about Snapchat is that we have so many different pieces of our business, so many different platforms, as I mentioned. So we compete with different services in different ways. I think maybe at a really high level, one example I could give is the entertainment part of our business. So if you're watching a video, for example, that's really highly competitive because we're competing for time spent, right? And people may want to play games instead. And of course, we've got a gaming business as well with our Minis. And so I think everything in the umbrella of entertainment is just an incredibly competitive space with so many brilliant people creating all sorts of new ways to entertain their community. And so that's something where we think about -- what are the special things about Snapchat that we can really leverage to compete on a sustainable basis. One of them, for example, with our content business is the content that's made by your friends for just a closed group. Usually, it's a content that's cross posted to other platforms. So it's really exclusive content, it's special. And that drives a lot of engagement because friends reply and talk to each other and respond to the content that's posted. That brings people into our store business, and then we can share content created by our publisher partners, which is another area we've really focused on because we can create differentiated content and we can revenue-share with publisher partners so that they reinvest in creating higher quality content. And so the content quality improves over time. So I think there are ways that we can bring the unique attributes of Snapchat like our friend graph and the way that people use our service to connect with close friends and family to differentiate ourselves with these entertainment products. But nevertheless, the competition there I think is going to remain quite intense. And I think that's in contrast to other parts of our business that are less about competing for time spent and much more about delivering utility. So increasingly, augmented reality is not about the time you spend necessarily on these AR experiences. Some certainly for brands that have created really immersive experiences where you can tour a new car or something like that. And they want to see how our community is engaging with that. But there are other utilities that just try to help you find a new product as quickly as possible with visual search. And that actually reduces the time you're spending searching and provides more value to our communities. Same thing with the map, people used to text their friends and say, hey, where are you? When are you going to be home? When are you getting to school? And now you don't have to text and ask, you can just look at your phone and see where your friends are at. And so I think that's an example of these products and features that are delivering a lot of value, but aren't necessarily competing for more time. And so open up sort of a new space for us to grow our business.

Interesting. Okay. Obviously, you've put up some strong revenue growth in the last couple of years, and you've made significant progress in developing some of the tools and capabilities you offer to advertisers. In your view, what are some of the areas where you think Snap can continue to improve, close the monetization gap versus competitors? And what investments are you making ahead of you to continue to improve that monetization ramp for Snap as a platform?

Absolutely. So at a really high level, one of the most important things is just continuing to grow our community and their engagement around the world because I think that will lead to our overall -- increasing our overall revenue opportunity over time. But then more specifically, it really depends on the stage of development of each of our platforms. So AR, for example, is still in, I'd say, the early adopter phase for businesses. They're still learning how to use it. It takes more time. It's a complex new technology. It's expensive to develop. It takes longer. And it's not an app, right? It's a fully immersive experience that really delivers value. And you can create an AR experience and just distribute it organically on our platform without paying to promote it. And many businesses already are doing that with things like commerce, like helping people try on new beauty products. Instead of trying on 300 lipsticks or something in the store, you can try them all those different shades on virtually through Snapchat and find those on a brand profile. So a lot of the work we're doing on the AR platform right now is just reducing the barrier to AR creation for businesses and really showing them the utility that we can drive. This is also something we're very focused on when it comes to try-on because we've noticed that AR try-on can deliver a huge uplift for brands because people can actually visualize what they look like wearing different products instead of just looking at tiny thumbnails of models online, which is not a super compelling way to shop. So I'd say when we look at our AR platform overall, it's really about just reducing the barrier to creation, helping brands understand the importance of AR and the value it can drive. I think as we look at our video business, which is much more mature, I think when we look back to -- when we started that business, we had to convince people for years to cut video vertically. But now we see that that's obviously the primary way people want to consume video on their phones. And that also makes us optimistic about this transition for augmented reality that it will take some time, but because the value is so clear that advertisers will adopt. So with our video business in particular, one of the big focuses that we've had right now is just helping advertisers transition their measurement solutions. There's a lot of changes going on in the industry right now. And I think there will continue to be changes for the next year or 2 because this is not Apple specific, but Google as well and of course, across Internet browsers and things like that. So the industry is undergoing some really big changes in measurement and really trying to build out more privacy protective solutions. So a lot of what we're doing right now is just handholding our partners through that, and that has been disruptive for them. So that's something that we're very, very focused on and will continue to be a priority for us. And then we have platforms like the map where we're still just focused on getting the fundamentals right. So we've got 30 million places on the map. We're getting better and better at showing the right places to people based on where their friends are going and where their friends want to spend their time, what's relevant to an individual's interest. And so that's really the primary focus right now. But we're -- we feel like there's less friction with monetizing the map because there are already solutions like Google Maps or ways that marketers are familiar with. So I think the monetization path is more clear on the map, but there's a lot of work we need to do just to continue to improve that experience and continue to innovate and drive engagement.

Got it. Okay. During your recent Analyst Day, you and the team talked about the plans to grow your international user base. Can you discuss in more detail your strategy to grow both users and engagement and monetization in the rest of the world? And which specific regions are you most focused on and what types of investments are needed to execute against that opportunity?

Yes. So this has been a big focus of ours. And I think one of the things that's really exciting is that we found Snapchat and visual communication to be universally appealing. But we actually have a lot of work to do to continue to make our service culturally relevant. And so if you think about the core of the Snapchat service, the way that we really bring it to life is with custom and culturally relevant AR experiences, content that is in native language and is created by content companies and creators that are based in the different countries where we operate. And so all of our teams' in-country around the world are constantly working to make this service feel more personal and more culturally relevant by onboarding the right partners on to each of our different platforms. So I think that's #1, and that's really important. Europe for us continues to be a focus. We see a lot of headroom there. We've had quite a bit of success growing in India because there's a very large and engaged young population with access to affordable and fast smartphone connectivity. So those will continue to be areas focused for us. And we're also excited about trying to grow in new countries like Japan, for example, where there's a lot of demand for our augmented reality products, but we still have substantial work to do to localize the business and the product there.

Okay. Understood. You've talked a pure bit about augmented reality already. I want to come back to that. Well, that's been core of your long-term vision since really the inception of the company. And most recent quarter, you disclosed 200 million Snapchatters engage with AR daily, 200,000 active creators using Lens Studio. Can you give an overview about how you see the AR strategy evolving longer term? And what investments you still need to make to achieve that vision you have for the company?

Absolutely. So I think there are a couple of key pieces of this strategy. And I think what's most important to understand is the way we've been able to build our AR business is based on the frequency of use of our camera. So because so many people are coming into Snapchat every day and making Snap 5 billion snaps every single day and sending them to their friends, we realized that we could start by providing all of these augmented reality lenses to make those snaps more engaging and entertaining. And that's what taught people how to use AR. So in the early days, it's just a vomiting rainbow or something like that, but it was a totally new way of using computing. And by making it friendly and approachable and expressive, so many people have learned the power of augmented reality. So what we did then over time was take the tools that we were using to build those lenses ourselves and make them available to everyone. We have a product called Lens Studio that anyone can download and use to develop these custom AR experiences. And over time, Lens Studio has become extremely powerful. And so now we have ML tools, for example, so that anyone can take their ML models and use them to make very, very sophisticated AR ML-driven lenses. We also have very advanced new features like body tracking, for example, which is going to be really important in helping people try on clothing and accessories. So that product that has evolved considerably, and we have a really exciting road map to really make that platform more powerful and make Lens Studio really useful for creating all sorts of AR experiences. So we've got Snapchat the app where people find all these lenses, and we've got Lens Studio, which is how people are building all these lenses. And then we have something new that's really exciting called Camera Kit. And Camera Kit takes this AR technology, this advanced camera that we have, and actually allows any of our partners to embed that camera directly into their application. And that's really cool because we're starting to see our AR tools used in new ways that maybe we haven't considered just inside of Snapchat. And so as we're able to bring our AR tools outside of the Snapchat application and into partnered experiences, we're learning a lot about how to evolve the platform overall, how to make Lens Studio more successful and what the future of AR is going to look like. So that's an overview of how we think about our AR platform. And then maybe to just give a more concrete example, with commerce, in particular, we found, of course, people -- just to be playful, we're trying on different hats or glasses or accessories or things like that. And so we started working with a few brands and realize that when people can actually visualize themselves wearing a product, it makes them want to buy it more because they can see what they look like, and they can even find the right fit. And so we've been investing a ton and making it easier for brands to really easily create those 3D assets to manage those assets, to then create these AR experiences where people can try them on. And with glasses, in particular, we have this thing called TrueSize, which allows you to make sure it's actually the right fit relative to your face shape. And that then over time, we believe, is going to lead to reduced return. So we recently acquired a company called Fit Analytics that allows you to input information about yourself. And combined with this AR experience, recommends the exact right size for you for a piece of clothing. So instead of doing what's called bracketing, which where most shoppers will buy 3 of a given product in 3 different sizes and then return the 2 to find the right one. We can make sure that customers are getting the right product the first time and reduce returns for the merchant. So visualizing yourself with AR improves conversion on the top line when you're looking to buy a product, and then getting the right fit and sizing information allows you to choose the right product and then improves your bottom line by reducing returns. And so that solution for merchant is really, really exciting for us and something we're working a lot on right now.

Really interesting. Okay. You talked earlier, Evan, about visual search or you referenced in one of your earlier answers. I wanted to come back to that as a topic. Can you provide an update on your visual search ambitions? Longer term, how do you think your strategy with scan evolves between first-party and third party? And how does the recent acquisition of Screenshop fit into your visual search strategy against some of the investments you think you need to make to capitalize on that strategy over the long term.

Visual search is such an interesting challenge. And we learned so much because people have been trying to build virtual search -- or sorry, visual search for a really, really long time. And what ended up happening that we saw was that people would roll out a visual search product. It wouldn't be very good because there wasn't a lot of training data available because no one had been searching it. Someone would take a photo of something and try to search it. They wouldn't get very good results, and then they would just stop using it. And so again, we realized that the frequency of use of our camera, the fact that people are using our camera all day long gave us an opportunity to learn faster because people would give us a lot more chances. And so we started building visual search around a couple of very specific use cases. We partner with folks to solve complex math problems, for example, because we saw our community was needing homework help, and they wanted to be able to walk through the steps of solving a quadratic equation or something like that. And it's really difficult to type in a long math equation into a calculator or something like that or into your computer. And so when you can just press and hold and instantly get the step-by-step to solve that math problem, it shows the power of visual search. And then we started expanding into different use cases. So now you can scan a piece of food that's in your refrigerator and get some recipe inspiration. You can scan a car that you see on the Street and look up its exact make and model, and over time we're adding more and more verticals to Visual Search and making it more useful. Of course, we have product search as well. So people can easily scan a product that they're interested in and get health information, for example, whether that product is good for them or purchase it, of course. So overall, what we've seen now that we've slowly increased these verticals is that people are realizing the value of visual search. They're understanding different things they can scan. And so we just, gosh, in the last couple of weeks, maybe last 3 weeks, elevated that scan functionality to the top level now so that there's a scan button directly in the camera when you open up the app. And that will, of course, improve discovery overall and we think broaden scan as a use-case. So it's really exciting. It's something that takes a long time, but the good thing is so many people are using our cameras so frequently that we think we're going to get a lot better at it pretty quickly.

Great. Okay. You've talked a fair bit about shopping. And we've written about the social commerce opportunity, and you seem very well positioned to capitalize on that. Can you provide an overview and maybe go a little deeper on what you've said so far in your shopping strategy? How Snap is positioned, maybe vis-a-vis competitors when it comes to the evolution of shopping, and how the end-to-end experience might look for consumers as some of these products mature, and what your ambitions are of layering AR into shopping as you talked a little bit for the past [Audio Gap]?

One of the things we tried to figure out with shopping was really how we could deliver unique value inside of Snapchat. What tools do we have to really help improve the shopping experience, primarily on logistics and infrastructure essentially. They were trying to differentiate on speed of shipping or price or something like that, but that the actual experience of shopping was very similar across almost every online shopping experience. It's just a bunch of photos of products. And so we felt there was a huge opportunity to improve the shopping experience to make it something that's much more immersive and fun. And this also means that we're competing with the in-store shopping experience. And when we talk to people about their in-store retail experience, they didn't love going into a -- picking out a bunch of cloths and going into a changing room. And so we felt like, okay, this is pretty interesting. The bar is pretty low. On the one hand, you're going into a changing room in a store. And on the other hand, you're looking at a bunch of photos. So there must be something better for a consumer to be able to shop in a way that's fun and expressive with their friends. And this really makes sense for our community, especially because 30% of like the discretionary income spent by our community is spent on fashion accessories. So young people really spend a lot of time and money trying to express themselves with clothing. So what we realized is that we could take our augmented reality products and use that to help consumers visualize themselves in new clothing and accessories. So I mentioned some examples previously, but our current focus has really been around beauty because there's so many -- there's a huge world of beauty products and taking -- trying them on in the store, it takes a really long time. It's not the best experience in COVID, it's been nearly impossible. And so now with AR, you can try all sorts of beauty products in a really frictionless way. And we've done, as I mentioned, the same with accessories. And the next big challenge for us is around clothing. And clothing is difficult because actually simulating drape of a piece of fabric is very difficult. It's hard, obviously, to scale it appropriately and get the size right for different body types. But it's something that we're working a lot on now, and we've got some exciting announcements coming up. So we really believe that our opportunity is on the front end of the shopping experience, really how a shopper visualizes themselves with new products.

Okay. Great. You talked a little bit earlier about content strategy, and I wanted to pivot to Spotlight, which has been a focus on the last few earnings calls. Can you walk us through what you're seeing from Spotlight's early days? I don't know if you want to frame it as either usage or engagement. And how engagement has trended across user cohorts and what sort of the flow-through from engagement has been broadly on the platform? And how does Spotlight then fit within the longer term strategy, both creation of content, monetization of content, and how we should think about the investments you need to make in Spotlight going forward?

Spotlight is really exciting for us because it represents the first time that any video has ever been able to go viral on Snapchat. So we were terrified for a really long time over the last 10 years or so about the potential for bad content or harmful content to go viral on Internet platforms. And in fact, we've seen that happening a lot, frankly. And so we never wanted to create any features inside of Snapchat that would allow people to really, really quickly reach a large audience with a compelling piece of content. But that was not great for our community because we have so many people, as I mentioned, 5 billion snaps created every single day, that there's all this creativity, and people do want to share that with the Snapchat community. And so what we try to really figure out was how could we minimize the chance that harm could occur by making sure that any content that reaches a wide audience is really heavily moderated, not only by AI and machine learning, but also by human beings, but still provide that experience. If you make a really great or funny video with your friends, actually having it reach millions and millions of people all around the world. And so Spotlight really satisfies, I think, our concerns and also our community because it allows people to get a ton of distribution against the content that they create. And as a result, get more attention for their account or whatever it is. So that's been something that's been really fun for us. We started, I think, as you mentioned, with a very large incentive program, which got a lot of early attention around it. We've changed that incentive program over time because what we found was that there was actually a lot of copycat content. So people would see the winning content that was making the most money and then make content just like it instead of content that was more diverse. And so evolving the program, we're hoping that we're going to attract a much more diverse base of content that responds to all sorts of different interest rather than sort of greatest common denominator copycat content. The good thing is after changing the program, we've seen record high submissions and a record high number of people submitting. So I think the changes in the program haven't slowed our momentum at all, and we're still finding ways to really reward creators not only with views of their content, but also financially. So I think as we look towards the future over the next year, the big focus for us is really going to be on the technical side. So we've got a lot of work to do to get better at content understanding. I think historically, we've been quite good at understanding the interest of our community, but we haven't been as good at playing a video, what makes a video compelling and doing that at scale. And so a lot of the technical work our teams are doing right now is around content understanding specifically. And then that will help us better match that content to all the interest of our community, which we do understand quite well. And so I think that will improve the product experience overall and combined with the content diversity that I mentioned is a huge focus of ours. We'll create a much more personalized Spotlight experience. But it's been a lot of fun. It's totally new for us and we're figured out as we go, but definitely a big opportunity.

Okay. A lot of interesting things in there. Sticking with the theme of creators, you talked a little bit about the creator economy on the last earnings call, we just wrote a little bit about it in some work we just recently did. Can you amplify beyond just Spotlight and talk about your long-term vision for the creator economy and how Snap is positioned to attract creators to your platform, how you view competition in the space and how you think monetization is going to evolve in the creator economy over time?

Well, I think foundationally for us, it's really important to understand that we believe everyone is creative, but that fear suppresses that creativity. And that's why we built all these different products that empower people to express themselves. So with the core product of sending a snap, that snap disappears after it's viewed, of course unless someone tries to save it. In the case of stories, we've never had public likes and comments. Your story disappears after 24 hours. And so what we saw was this unbelievable explosion in creativity from everybody, right? So our focus is really making sure that we're building all of the sorts of creative tools so that anyone can express themselves with their friends and family. And then also building tools for a subset of those creators, a very small group that want to create professionally. And one of the things that we've done is make sure that we separated out the professional creator content from your friends and family. So you don't feel that comparison, right? If you're being compared to a celebrity every day and it doesn't feel very good, and it makes it feel like there's a much higher bar to creating interesting and fun content for your friends. So we took a very big step. It was quite controversial at the time in 2018 to separate out all of that publisher and creator content from your friends. So we can really continue to stay true to our core, this idea that everyone is creative and expressive. And so that, I think, is maybe the most important piece as we think about the creator economy. And then specifically for this very small subset of creators that want to create professionally all day long, we've been working on developing a lot of tools for them and also making it easier for them to monetize in a number of different ways. So we've announced gifting, which allows people who follow creators to send them gifts and start conversations, which allows them to build a closer relationship with creators that they really care about. We've made it easier for creators to link to their stores so that they can monetize their merchandise directly through Snapchat, which I think is something that's really exciting. Of course, with direct payments from things like Spotlight, if a creator makes a really successful piece of content, they're directly financially rewarded. So I think that's going to continue to be important, and it's definitely a focus for us. But it's important to understand that that's -- the professional creator is really just a subset of -- a small subset of our community that's really creating a ton of amazing stuff all day long for their friends and family.

Got it. Okay. I know we only have a few more minutes of your time, so I want to end on maybe one last theme. For me, watching the company from the outside, in the last couple of partner summits have been all about the evolution of Snap into more of a platform. So in the recent years, Snap has introduced a number of third-party partnerships and integration across a pretty wide range of tools in my opinion. Can you just end on the note of what is your vision for all these partnerships and integrations might evolve and fit together over time against your broader vision for the evolution of Snap, whether it's Kits, Minis, Maps, Games, Bitmoji? It's going to be an interesting way to maybe frame the conversation and end on that note.

Definitely. Well, we have this notion at Snap of win-win-win partnerships. And what we identified very early on was that if we work together with people who have -- this, I guess, maybe the earliest example would be our content business. If we work together with people who had expertise in areas that we didn't, that our community would benefit from their expertise, and they could grow their business as well by accessing our community and being able to monetize and things like that. And when we saw how that was able to totally propel our content business, and we were able to totally transform the way news, for example, was created at the time. I mean, when we first rolled out Discover, there really wasn't mobile native news, if you can believe it. Some people were just experimenting with apps and things like that, but nothing was really formatted in a visual way, in an immersive way for our community. So we were able to help content partners adapt to this new way of creating content, reach a much bigger audience that they weren't reaching with their owned and operated platforms and, of course, monetize and grow their business. So we took those learnings and the benefits of win-win-win partnerships and started broadening them. And we realized, for example, that with Minis, we could help game developers solve some of the big problems that they have. It's really hard to download a game with all of your friends and then connect with all of your friends and play in real time. I mean it's super frustrating to do that. For a game developer on Snapchat, it's seamless to launch a game and immediately connect with friends and play together. And of course, when people play with their friends, they play longer, which leads to a better monetization opportunity for gaming developers. So with Minis, I think that's been another really exciting example with the map and bringing places on the map. We hope that we can help folks discover new places that are near them or maybe that their friends really enjoy and drive more traffic to those establishments and also help create a more personal map that reflects the way that you see the world because it highlights the places that are most important to you. So I think over time, and probably last, but not least, the success and growth of our AR platform has been absolutely extraordinary, both on Snapchat, but increasingly outside of Snapchat as people embed our AR tooling into their own platforms. So yes, I think it's just amazing to see the benefits you can drive collectively if you work together and leverage the strengths of all the really exciting startups and businesses, content producers all around the world. And that's been a really successful strategy for us.

Well, great. I think we're almost out of time, Evan. Well, first, I want to thank all the investors and folks who are tuned in on the webcast. Thank you for attending the conference. But more importantly for me, Evan, thank you so much for agreeing to be part of the conference. I really appreciate it and we look forward to catching up soon.

Thanks, Eric. Really appreciate it. Take care.

Take care, everyone.