All right, guys. So we are gonna get started. Kicking off this morning, we have Mike Praeger, CEO of AvidXchange. Mike, I think you've been at the Communacopia Conference every year since the IPO, so it's a pleasure to have you again. Yeah. Good to be here. It's always good to be in San Francisco. Yeah, good weather. All right, Mike, to kick things off, let's just dive into questions. Why don't we start with some brief background on the company, the products, and- Yeah the market that you operate in? So great. So first of all, we describe ourselves as a software company that automates the accounts payable and payment processes for middle market companies. And that's the key word, is middle market. We're really purpose-built for the middle market, and we define that segment as companies between $5 million and $1 billion. And just in the U.S. market, there's 435,000 of those companies. But what's really interesting, Will, is of that segment, what makes middle markets so unique is about 50% of middle-market companies highly align themselves to an industry vertical that has either unique business process or accounting process to the vertical that requires a vertical-specific accounting system. And that's what really makes the middle market unique. So today, we actually go to market in nine different industry verticals, but we're integrated to 240+ different ERP accounting systems, and that's part of the big moat that we have around the middle market, and then in the other 50% is what we call the horizontal segment, and it's, you know, Microsoft Dynamics, NetSuite, Sage Intacct, maybe some Acumatica, and that's the other kind of 50% of the market. So obviously, we cover both, but our, you know, sweet spot is going really deep in these vertical market segments, where we're typically the industry leader, but, you know, I'm still here after 24 years because we're single-digit penetration in all nine verticals, so a lot of runway. We estimate that over 70% of the middle market hasn't done anything yet. They're still processing paper invoices, paper checks. Ninety-five percent of our new customer adds every year are greenfield. So, that, you know, keeps it a pretty, fun and dynamic market for sure. Yeah. So maybe if we zoom out, you know, the choppy macro environment has been an ongoing impact -- an ongoing headwind impacting discretionary spend on the consumer side. There's also been some choppiness over the last two years in B2B, that I would say really kind of predated any kind of consumer issues that we were seeing. How would you characterize sort of the state of spend in the middle market today? Yeah. If spending trends are cyclical, where are we at in that cycle? I don't know if I have a silver bullet on the last piece of it, where we are in the cycle. Maybe you guys can tell me that. You know, so a little bit about, you know, just how we think about that, you know, how do we measure it? We have a, you know, metric that we use that we call transactions retained on the network. In a normalized state, we've seen for long periods of time, that number is roughly 105. So 105% means we get five percentage points growth from our, you know, installed base of customers every year. So think of that as, you know, kind of the metric for same-store sales. During COVID, that number went up to, like, 109, 110. Last year was one oh three. Now it's running, you know, kind of, you know, little, you know, sub one hundred, and so call it, you know, a five-six percentage points degradation is directly contributed to discretionary spend, you know, cutbacks by our middle-market customers in areas like marketing, professional services, consulting, preventive maintenance, and some capital projects. Those are kind of the five buckets that we see, and so we're currently seeing that today. You know, I spend a lot of time talking to the CFOs, CEOs of, you know, lots of our customers, and what I hear a lot of is just that, you know, the macro causes kind of one level of uncertainty, but just then you add on top of it the election cycle, it's just another layer of uncertainty. Right. I think people are just operating a little more cautiously until we get through the election. You know, forget about, you know, who wins, just knowing who our president's gonna be, what policies are gonna be driven by that, and just having clarity so then they can, you know, run their business accordingly, probably have some visibility to maybe the rate environment. So, that's what we're hearing. I don't know if you have a crystal ball in terms of- I wish - what that means in terms of, you know, when that, you know, confidence comes back around. But, I've been doing this for, you know, twenty-four years, and we've managed through, you know, a number of these cycles, and this looks and behaves very much like, you know, the other cycles we've managed through. You know, people start having confidence in the other side of the cycle, discretionary spend comes back really quickly is what we've seen in the past. Got it. And then maybe we can talk through, you know, just the overall topic of monetization and how sort of that macro backdrop has impacted sort of the monetization trends in the industry, and it's been a focus for you, some of the competitors. Yeah. So, so one of the things that makes, you know, AvidXchange unique, I'd say, there's a handful of things. One is we're purpose-built for the middle market. The second thing is we've kind of taken, kind of the opposite approach of really everybody else in the industry, in terms of what drives adoption and acceptance of B2B payments. And everybody typically focuses on the buyer customer, be able to dictate payment type. Our belief is that may work in examples of enterprise, you know, the Walmarts of the world, but in the middle market, we don't think that dynamic works. We think what drives adoption is creating a great value proposition for the supplier and thinking of the supplier as a core customer. And, we kind of started that way in 2012, when we launched the AvidPay Network. And today we're, you know, we have over 40% of all the transactions going through our platform. We're monetizing, and that number is typically 2-3X what we see from any, you know, competitive front or even a bank. So one, I'd say the strategy is absolutely, you know, working. And what that strategy is is creating that value proposition for the supplier in three areas. The first is we give the supplier lots of different payment modalities to choose from. Today, we go to market with 25 different payment modalities. Twelve of them are virtual card related. I know you guys had, you know, the Mastercard team here yesterday, and they've been a great partner for us. Mastercard, a little bit of history here, in 2017, selected us as their exclusive B2B middle-market partner and invested $100 million in the company. Sachin actually led that investment when he was running B2B payments before his current role. And what that relationship gives us the ability to do is, within some Mastercard guardrails, is to create different interchange structures for different value propositions for suppliers for adoption. And I think, you know, Miebach actually maybe talked about that during his session here a couple of days ago. So we go to market today with 12 different interchange virtual card products that combine four things: the speed of the payment, the price of the payment, the level of data remittance, and the level of automation. You know, and give an example of level automation, the kind of the full monty thereof of automation is our straight-through process, where a human doesn't have to touch the transaction. And then there's kind of, you know, less levels of automation, with across different virtual card offerings. So that's on virtual card. We do the exact same thing on AvidPay Direct, which is our closed loop ACH network that we charge a fee structure for, and we have 12 different versions of that product, and then the 25th is a good old-fashioned paper check. So value proposition is we give them lots of modalities to choose from. Second part of the value proposition is we give them tools to manage business rules on our network of the different types of payment modalities they want to take under certain characteristics. So for example, you know, a common one is I'll take, you know, a virtual card transaction maybe up to $10,000, but if it's over $10,000, if I have a $400,000 payment, I want a different payment modality for that payment. Those are great examples of, you know, different business rules that suppliers manage on our network. And then the third is we give them access to cash flow management tools to better manage their cash flow, and the kind of flagship product there is Payment Accelerator. Okay, so those are the kind of the three products, and one of the things that, you know, we talked about on the last call that we saw, was suppliers, specifically enterprise suppliers, more having more activity. Now, they've been doing this, you know, all along for years, but just slightly more activity of managing their high-ticket transactions with different types of payment modalities. And we, we define a high ticket as over $10,000. We view that as super positive. We don't have suppliers attriting from the platform. We're maintaining, you know, north of 95% retention of our supplier customers. But what they're doing is they're just, you know, better managing their business rules for what's best for their business. Again, we view that as super positive, creates long-term durability, stickiness, all those kind of things. But, you know, it has slight, you know, negative, you know, impact to, you know, TPV yield. And one of the things that we try to, you know, articulate is for our business, TP yield is not a great metric to model our business by. What we use and how we run our business is revenue per transaction, because there's lots of levers that we have, in terms of getting adoption for the re- you know, remaining 50% of our transactions that were, that are paper check today, that maybe have slightly lower, take rates to our average. It's super positive in terms of it creates, it takes a zero revenue transaction and, you know, now generates $7-$10 for revenue, even though the yield may be slightly less. We're trying to educate people on that dynamic to better understand our business. Yeah, that makes sense. You talked about some of the lower, you know, the lower-yielding payment methods for that kind of 50% that's not, that is not automated today. You know, could you maybe talk through that process? What are the, what do discussions look like with suppliers on an ongoing basis, to, you know, to kind of get them to change their payment preferences and adopt- Yeah. -more automated? So just to give you a sense of the volume, you know, we have 1.2 million suppliers on our network today. And in terms of monetizing those 24 different payment modalities, you know, 12 virtual card, 12 AvidPay Direct, we're adding between 1,400 to 1,500 new suppliers a week to that. And what's really interesting just, you know, is still today, for those, you know, call it 1,500 new suppliers a week joining our network, about two-thirds of them are selecting one of our virtual card offerings, and about one-third are selecting one of our AvidPay Direct offerings. Even though AvidPay Direct, on average, is priced at about, you know, 50% of the cost of a virtual card. Okay, so you can sa y, well, why would, you know, two-thirds select a product that's twice as much, you know, in today's, you know, environment, right? And what you realize is that it's not. Price doesn't drive the initial decision. What drives the initial decision is where the suppliers automated their internal AR process. So if they've invested heavily in automating their card acceptance because maybe they have a big retail part of their business, they want to maximize all their transactions going through where they've automated. Because the most expensive transaction they have is an exception that they have to get human being involved in managing. And so, it's, so price, so they, you know, if you've invested in automating your virtual card process, you're happy to pay an extra hundred basis points to get all your transactions through that process. Yeah. So that's what we see in terms of, you know, kind of, you know, feet on the ground, boots on the ground, you know, real-time, you know, feedback with suppliers. I've gotten this question about just the level of straight-through processing with an AvidPay Direct transaction versus a carded transaction. What's sort of the functional differences in the data fields and the, you know, the automation that you can do on the supplier side on, on, you know, between each of those methods? Yeah. Think about it, we have a wide variety of different price points on AvidPay Direct across those 12 different offerings, in the same way we do the exact same thing with virtual card. But one of the big also kind of variances is on you know that level of automation, right? On the kind of the worst side of it is sending a supplier maybe an email with the remittance data. you know, all the way to a straight-through process, where it's, you know, fully integrated to both their merchant account system as well as to either their billing or their accounting system. And we do the exact same thing on AvidPay Direct as well, except there's not a merchant account involved, so we're pushing the money to their bank. Yeah. And then same thing, you know, sending a file, you know, either through email or to, you know, directly into their billing accounting system, and there's a bunch of, you know, variations in between. So I guess in both cases, there's a software layer that integrates with the ERP. Yeah ... and sometimes with the merchant account to drive that automation. Absolutely. It's just really about whether they focus on consumer payments versus more bank payments? Typically, yes. Got it. Super helpful. Okay, maybe switching gears to competition. You know, what is the competitive environment like today? You mentioned that a lot of your new customer wins are greenfield. Yeah. So how has that evolved? How does it differ across the different verticals that you serve? Yeah, I mean, you know, I get this question a lot, and, you know, and it hasn't really. It's changed slightly, you know, over the years, but still, you know, number one, our biggest competitor is a status quo paper-based process. That's the number one competitor that everyone in this, you know, market has. As it relates to, you know, other third-party competition, what's really, you know, interesting is it's very specific to each of the industry, you know, individual verticals that we're in. And I can't really think of a single example of a competitor crossing over multiple verticals. So, you know, whether it's in real estate, in media, in hospitality, you know, they'll typically be, you know, a software related. Typically not a competitor that does software and payments, because they're smaller companies, but it's, they do AP automation within that vertical market. And then maybe a customer is, you know, talking to a bank or something related to payments. And where we win is that we bring the software automation combined with the payment network, with both of them highly integrated to their core accounting ERP system. And that's, you know, kind of the winning formula that we have. And then, you know, the same thing is, you know, kind of on the horizontal side. Horizontal side, you know, we, you know, probably the number one name that I get asked about is Tipalti. Again, very specific. You know, we'll see them in typically the NetSuite channel, where over 50% of the customers' transactions are international. That's where we'll see them. If it's, you know, the other way around, you know, domestic, over 50% are U.S.-based, we typically don't see them. You know, so, you know, it's very specific kind of use cases that we see different competitors. It's not like the enterprise market where you have, you know, Oracle and SAP battling out and, you know, at every deal. Yeah. It's not that environment at all. Got it. And then maybe just one more on this topic, and I wanted to kind of bring in some of the comments you made on spend management, because I know that's been a more- Yeah ... recent initiative for the company. It seems like you've seen this convergence, AP companies becoming spend management companies, vice versa. Yeah. You know, how do you think the market structure is evolving? How do you think the competitive space is in spend management, and what does that... what does that product do for your product? Yeah. So again, what I would say is some of the other ones that you might be familiar with out there, you know, the Divvy that Bill has, the Brex, the Ramp are solving very different problems than we're trying to solve. Those are really kind of card-based solutions to, you know, allow, you know, companies to kind of finance their business, you know, through a card-based spend program. Very specifically, what we're trying to solve, you know, customers have come to us and said, "You know, we have 100% of our invoice expense transactions on your platform, and that's our system of record. It feeds our general ledger. But Mike, we have maybe 10 or 15% of our expenses that don't have an invoice. It might be T&E-related, might be emergency purchases, things like that, and they're in these either, you know, third-party systems, might be Excel, might be, you know, other, you know, T&E platforms. You know, how can we get those 10-15% of transactions that are not in our Avid platform today, so we have one system of record for all our expenses, and we have, you know, one user experience for a user that can manage, you know, an invoice, you know, expense in the same way they can manage a non-invoice expense? So that's what we're solving with our spend management. So to capture that other, you know, call it 15% of expense that doesn't go through our platform today, that's typically not related to a direct invoice, and to create that better user experience. So it's that's the business problem we're solving versus giving 30-day credit. Yeah. Our customers don't need thirty-day credit. You know, they have bank lines and, you know, revolving facilities. They're just trying to make their business process and expense management process better. Will there be a physical card with your offer? Yeah. There will be, you know, for that, absolutely. But again, it's... it won't be, you know, a credit, you know... Our customers don't need, you know, thirty-day credit terms. Sure. It's more so. It'll mostly look and feel like our regular kind of, you know, process today, where it's mostly a good funds type model. Yeah, makes sense. Okay. All right, so earlier this year, you called out shifting towards a more targeted approach around go-to-market. I think more recently, though, and I think partially related to some of the macro, some of the macro discussion earlier, you know, you commented about top of funnel being down 4% for the first half of the year. Yeah. So can you just kind of talk through, you know, the go-to-market resource allocation and any update on how top of funnel is progressing? Yeah, so one of the things, we've been kind of referencing or talking a little bit over the years about top of funnel, kind of inter-quarter, because we, you know, typically, we only update our logo, you know, numbers, you know, once a year, so one of the things I tried to do last quarter, you know, probably not that well, is to, you know, try to articulate that, our top funnel activity is like apples and oranges to what it used to be, and what I mean by that is we've dramatically changed some of the mix, and what we've done is we've taken dollars that we used to invest in, channels that generated lots of volume, but low quality, and moved it to where we're seeing really high quality coming through. And the best example of that is digital versus our partner channels. So what we're seeing is that we saw, you know, kind of Google AdWords, some of the other digital channels, produce large volume of activity, but, you know, much less, you know, when you cycle through it, you know, quality. Versus a partner channel, just take AppFolio, for example. You have a customer who's on AppFolio, it runs their business, and they're saying, "Hey, I want to expand my business process with an automated AP. AppFolio, can you help me do that?" Well, that's a much better lead than a Google AdWords search that comes in. Sure. Right? And so what we did is we've kind of migrated dollars, you know, turned the, you know, the dials and said, "We're going to spend less on digital, allocate more of those dollars to our partner channels." And what we're seeing is new, you know, logo growth is up over last year. And in the last quarter, this is like, you know, I've never seen this happen in one quarter. We literally took twenty days out of our sales cycle. Wow! We used to be at, like, 70 days, now we're at, like, 50 days. And it's all directly attributed to the quality of lead is so much better, and so customers are going through the sales process faster. That's great. You mentioned some of the partnerships, kind of, and kind of doubling down on this strategy. AppFolio and M3, I think, are two of the more exciting ones. Yeah. Can you maybe just update us on the status of those? Yeah, perfectly. And, And, you know, and we launched just a new one in the last quarter called Buildium to go with that. What I would say is that, you know, like, we're seeing the quality, you know, really gonna kind of take... You know, be much, you know, greater in terms of our overall top-of-funnel activity. We're investing more in it. You know, probably, you know, we have lots of, you know, partner relationships. There's probably, you know, Subhaash can tell me probably the exact number, but, you know, yeah, two hundred and seventy different partners. Now, they're all not created equal, right? I wish they were, but they're not. But, you know, some of the bigger ones that we're really excited about and, you know, mentioned AppFolio. AppFolio is a great one because it's in a market that we already are the leader in, being the overall real estate segment, specifically multifamily. We also have lots of AppFolio customers as Avid customers already. And a little history here with AppFolio, and, you know, they're a great company, but, we had lots of discussions, like, five years ago with them, and, they opted to try to build this functionality themselves into the platform to manage. They spent the last number of years doing that and kind of realized it's a different business. It's very different than, you know, generating, you know, ERP software and trying to be great across all your different modules. Yeah. And it's a business in itself, real-time money movement, transaction management, all those things is just a different business. And they came back to us and said: "Okay, you know, we already have lots of our customers that are using your AvidXchange. Let's, you know, we want to have a best-of-breed partner as our, you know, kind of exclusive partner for our customers. What can we do in creating a great embedded experience?" And so, so that's an example with AppFolio, and why we're so excited is we're a leader in this segment. AppFolio has 20,000 customers, and we think half of them are good product fit for our application. Well, that's 10,000 customers, and we're, you know, just over, you know, north of 8,000 customers overall today. You know, so a great, you know, kind of additional TAM that we have to grow our business, and that's just one partner relationship. Yeah, and the lead volume off of that is kind of coming in line with that? Yeah. I mean, what we kind of talk about is we think we get the, you know, the bulk of kind of the partner opportunity within the first, you know, kind of thirty-six months. Mm-hmm ... of the relationship. And typically, the first year is a little bit of a, you know, education year, developing kind of the, you know, the sales motion with the sales force, all those kind of things. And then you really kind of, you know, see acceleration the second or third year. And this is playing out just that way. It might probably actually be a little bit ahead of schedule. Is that an attach game on new business from AppFolio's channels, or is there kind of a marketing- a way to go market the installed base? Yeah, it's definitely a, you know, for new customers, but it also... You know, they have 20,000 installed base customers, so certainly, we're focused on how to attack that 20,000- Yeah ... installed base, for sure. Yeah, makes sense. Okay. I wanted to hit on Payment Accelerator. I know that's something you've, you know, been very passionate about- Yes ... over the years. Can you kind of walk us through the state of the union on Payment Accelerator? You know, how has it been progressing and, you know, how you think about the scaling from here? Yeah, it's a great question. A little history here. It's a product, again, that was driven by our suppliers. In talking to -- what's important to recognize is, although we are purpose-built for the middle market, that's for our buyer customer side. On the supplier side of our 1.2 million suppliers, we estimate about 10% are enterprise suppliers, about 30% middle market, and 60% plus are small business suppliers. And that 60% of small business suppliers, so just today, that's, you know, over 700,000 suppliers tell us, "Hey, having tools to better manage our cash flow is really important to us." And that's where our Payment Accelerator offering came from. We used to call it Invoice Accelerator when we launched it in terms of a beta and carved out about 50,000 suppliers to begin using it, so we get learnings. We did that for about two years, got all kinds of great learnings, and then rebuilt the product based on all these learnings. That's what we call now Payment Accelerator. Marketing thought it would be smart to change the name of it. And so we now released it late last year, and this year, because it incorporates a brand-new money movement, you know, kind of architecture, and how we move the money and basically identify payments flow going through our network so we can recapture them. You know, there's a number of different, you know, kind of, data science components and AI components in terms of eligibility and underwriting. We just wanted to be, you know, take it slow to make sure it's working as designed. Whenever you're dealing with a credit-based product that can scale really fast, you want to make sure you get it right. Mm-hmm. And so we've been, you know, kind of metering it, you know, and testing it at different levels of, you know, volumes. And feel really good about it. And just, you know, one of the metrics that, you know, we share is that we're seeing with the new product that once a supplier uses it for the first time, we're seeing that, you know, like 83% of the time, they come back within 90 days for ongoing advances. So yeah, I think it has the right user experience, the stickiness factor, as I call it, and super excited about how that business scales. And, you know, I'm... You know, have a lot of confidence that it's our next $100 million business. I guess, what do you look for in terms of-- and I'm guessing the progress of scaling it is adding more suppliers as opposed to expanding, you know, terms or underwriting. But what are you looking for to kind of flip the switch or start adding more and more suppliers to that? I mean, what we're looking for is that the business process, the money recapture process, and the, you know, kind of the money movement process, all that stuff is working as designed at different levels of volume. You know, it's one thing if it's working at low volume, but, you know, what we don't want to do is, we don't want to be in the business of every six months have to go back and kind of re-architect it for the next level of scale. Yeah. We want to build it, you know, one time to have all the scale we think it's gonna need in the next, you know, five or 10 years. Yeah. Right? So we're, you know, taking it a little bit slower to make sure we have that right. And then, I think, you know, once we really, you know, open it up to all our suppliers as we go through next year, we're gonna see some, you know, really scaling occur. Yeah, and I think in the multiyear targets, I kind of think that the medium-term expectation was for that product to be something like 5% of the revenue. Yeah. Is that still the right way of thinking about it? Yeah. I think that's a, you know, conservative baseline. That's how we think about it. Got it. Okay. All right, and last on the product, one of your latest initiatives in payment automation is executing virtual card payments through online partner portals, new AI-powered IVR- Yeah ... payment automation solution. Can you just talk in a little bit about, you know, the enhancements to the virtual card platform and how you kind of gauge success with that? Yeah. I mean, this is one where, you know, what, what's interesting is, we went public in 2021. Our gross margin was, you know, like low sixties, about 62%. And, you know, and since our IPO, we've actually increased our gross margin, like 10 full percentage points. But the first thing I'll say, it hasn't been, like, one or two or three things. It's been probably, you know, 15 things that we've been doing. And, one of them is, you know, we, you know, for us in this business, I get a chuckle out of, you know, it seems like everyone woke up to AI, you know, in the last two years. But, you know, we've been working on this a long time. One example is, you know, that kind of differentiates us, you know, in terms of just, you know, payment execution, is that there's a group of suppliers, and typically they may be utilities. They'll say: "Okay, I have an AvidXchange. I'll take a virtual card transaction, but you have to call it into our IVR system." Lots of people in every bank in the industry hears that, and it's like: We can't deal with that, kick it the check. And what we started doing back in the day is actually have human beings calling into IVR systems to make those payments, right? And then we automated that process with RPA bots. And so we had human beings doing it. We could go down to, like, $400, and then everything under $400 wasn't cost effective, so we kicked it to check. We automated with RPA bots, and we brought it down to $200. And now we have AI agents doing it, and we brought it down to $10. Wow! This is a good example of, you know, how it, you know, can impact our business. Certainly, continues to drive gross margin. That's, you know, kind of a, I'll say, kind of an internal efficiency type of application. We have some great examples that we're using in our upfront invoice capture process. One of the big challenges in this business is invoices are non-standard documents. How do you read them in a non-standard way and get everything into a kind of standardized process, so you can take advantage of, you know, routing, workflow, coding, all those kind of things? We've historically have partnered with Microsoft on their latest generation OCR platform, combined with their machine learning capabilities, and now we've kind of applied all the AI capabilities to it. That capture their product is, you know, night and day, you know, ahead of where it was even, you know, a couple years ago. Yeah. You know, so that's, and that has customer, you know, impacting, you know, type of, you know, or customer interfacing capabilities. And then, certainly in the workflow side, you know, all the workflows now are just, you know, more dynamic, intelligent, with AI capabilities. Again, you know, customers are getting the benefit of those. So it's across our entire business, where we have lots of different use cases, and there's probably 12-15 use cases the team's working on right now. Yeah. No, that's great. Wanted to maybe squeeze in a question on the media vertical. So with the FastPay acquisition, you know, you gained exposure to kind of political advertising. It's been a pretty slow week in politics, but just kind of curious how you're thinking about, you know, how that, how that business is shaping up. If you've been at the, you know, Goldman conference and haven't had time to pay attention to the news, it might have been a slow week, right? But and so, so a little bit about the media vertical for us. So it's a, you know, really dynamic kind of vertical related to, we're the leaders in kind of media-related AP payments. But we have about 70 customers, who also do political, specifically political every, you know, like other year in the cycle. And in the last cycle, those, you know, roughly 70 customers, we processed about 30% of all the payments in the political, you know, sector in the last cycle. So yes, we have a pretty big political business, you know, kind of. It's really a function of not that intentional in terms of us driving it, but our customers growing into political is how it kind of formed. And, but it's one of these segments where, you know, it's super hard to predict because there's no pipeline. You know, people make decisions in political, in very, you know. You know, there'll be, you know, candidates making decisions today on ads they should run over the weekend- Right ... type of thing. So it's very short, so it's hard to forecast, so we've kind of taken a, you know, kind of conservative approach to what we saw in the last cycles. The other thing that, you know, to recognize is about 50% of it comes from candidates, the other 50% comes from ballot issues. Mm-hmm. So we love the state of New York, with lots of, what is it? About 130 ballot issues. So, you know, and California, California and New York, you know, are good examples of that. And then the other kind of piece also is mix impacts it because, the more that it goes through digital political, isn't as monetizable. You know, like, you know, Facebook and Google, and things like that, versus, you know, traditional media of, you know, TV, radio, billboards, you know, direct mail- Mm-hmm ... all that kind of stuff, that is more attributed to kind of things that, you know, we monetize. So, mix also, you know, kind of impacts it. So, you know, I get a daily, weekly dashboard of what's happening, because it's one of these things where, you know, about, you know, 90% of the spend happens post Labor Day. So, so we're right in the middle of it right now. Nice. You know, like, you know, almost every day is a record day for us. Yeah. And I know you said, I think you said in the past that's a fairly high, highly monetized channel. Yeah ... with virtual cards. So maybe can you kind of clarify if you've seen any of those card acceptance issues? I know you said in the past there's some actual structural reasons why virtual cards can be quite convenient in that channel. Yeah. I'm surprised by- I'd say it's behaving as we've seen in past cycles. Yeah. Part of the reason why we're kind of leader in it is because, you know, back, I don't know, maybe twenty plus years ago, politics operated like traditional media does, and, you know, people were getting invoices. And then you had a couple campaigns that, you know, that lost the race, and they didn't pay their media bill. And so the media company said, "Okay, we're going to create a new segment called media or political media, and for political media, everything has to be prepaid." Well, that ended up being really good for us because what happens is, candidates don't want to wait for a paper check to clear, because that may take seven days. So they want, you know, "Avid, you need to make an electronic payment," right? So that actually, you know, that's how we became the leader in the space. Yeah, you know, we're very focused on how we can help our customers, you know, take paper checks out, 'cause in this segment, no one wants to wait for a paper check. Yeah, makes sense. We've got just about half a minute left. I wanted to see if there's anything you feel like we haven't touched on or any final messages you'd leave the audience before we end it? No, I mean, I think, you know, so what's interesting is that, you know, I think probably what's, you know, lost sight a little bit about is, you know, people don't understand kind of that moat that we continue to build around the middle market segment. Because once you kind of get under the covers and understand the nuances, the middle market is a very different market than in our enterprise market, it's very different than the build-up, you know, small business market, is kind of one. And, you know, frankly, you know, one of the things that we thought, you know, we'd probably get a little more credit for is, are the things that we can control. We can't control discretionary spend in the macro. Yeah. But what we can control are, you know, our gross margins, our path to profitability, all those things. And like, we're way ahead on our gross margin expansion, you know, where we thought we would be, and now approaching 75%. And we're way ahead of our profitability, right? Right. And, you know, approaching 20% EBIT. So the things that we can control, we feel like we've done a pretty good job and continue to, you know, lean into, you know, while we're, you know, kind of managing kind of that macro dynamic, and, you know, and just continue to create, you know, deliver a great value proposition to customers. Yeah. Awesome. Well, I think with that, we're out of time. Mike, thanks for joining us today. Really appreciate the conversation. Yeah. Thank you. Yeah. It was great. It's good detail on the media stuff. It's interesting. Yeah. I remember you also talking about like, they, you know, they bill for something, and then they don't get the media that they bought, and so they have to, like, true it.