Good afternoon. My name is Paul Chung. I'm the applied emerging tech analyst here at JP Morgan. I'm pleased to have with me, Jeff Rosica, the CEO, and Ken Gayron, CFO from Avid. Welcome. Thanks, Paul. Good to be here. Yeah. Thank you, Paul. All right. To get us started, maybe just a quick brief overview of the firm. Avid is a technology supplier that serves the media industry. That would be actually music, TV and film, and also news and sports applications. We serve everything from the big enterprises around the globe, names you probably know, Disney, NBC, ITV, et cetera, NHK in Japan. We also serve the creative individuals, so we serve a lot of the people who make music or make television or film programming. We're both supplying technology to both the enterprise or the business and also to the creative individuals on that. The company is, it's been moving... We're moving pretty quickly to a sub-subscription SaaS business, we're moving a lot of our software businesses to subscription SaaS, and it's been a pretty exciting transition. Yeah. Just a quick kind of macro update, you know, what are you seeing from the constraint side on hardware? Where can we see kind of normalized level and any backlog you wanna mention? Yeah. On the hardware, we call it integrated solutions 'cause we don't sell any just what I call commodity or dumb hardware. All of our solutions are integrated with a valuable software layer. In our integrated solutions, which are software bundled with hardware, we saw a lot of pain from the supply chain situation, mainly around availability of components and just components not available for a long period of time or components that were being end of life during the whole, you know, supply chain crunch. We worked through a lot of it. A lot of the products got worked through fairly easily and didn't have a lot of disruption. A handful of our product families that use more, let's say, specialized FPGAs or DSPs, has been a lot more work to get through that. We're starting to make some progress. You know, there's just still a lot of costs flowing through that line item of the business today. But as we look forward through Q2 and especially through Q3 and Q4, we do see the normalization kind of flowing through our own business. It was taking a little bit longer because some of the changes we've had to make around FPGAs and DSPs took a lot of software development. But that work is now done and production is beginning, so we're gonna be able to start working through that all in the next couple of quarters. Right. Expand on kind of the hardware contribution kind of longer term and impact on margins, I guess. It's gonna be. Well, there was a temporary hiccup in the first half on margins. Generally, the, you know, the whole situation with supply chain inflation has been a pressure on the hardware margins. That pressure will flow through. We will get to a more normalized margin profile that we expect on our audio and video. Our video hardware actually has been pretty stable, but on the audio hardware, we'll see the margins normalize here before the end of the year. Going forward, though, hardware is becoming or, you know, we call it integrated solutions or hardware. They mean the same thing. That part of our business is becoming a smaller percentage. Right. of the overall business. We really don't see a lot of growth. You know, there's some recovery in the business, but then it's a relatively flat part of our business 'cause our investment really isn't, you know, our strategic investment isn't really in that part of the business. Some of those products are just to fill out our solution offering- Right. that we do to serve those industries. Really, the growth is all around the subscription SaaS part of the business. That's where really the margin, the continuing improved margin profile is driven from, you know, the growth of our subscription SaaS business. Okay. Great. Let's dig deeper into the core part of the business, so Pro Tools. Okay. Give us an overview, kind of the software suite and the, and the products that you're-? Yeah. I'll give you the products, and I'm sure Ken can dig into some of the model questions there. Pro Tools is a software product that serves both music and audio. Well, the audio you hear in a TV show or a film program, almost all of that is mixed and edited in Pro Tools around the world. You know, if you watch a, your most popular streaming show or, you know, feature film, 9 times out of 10, the sound you're hearing in that film or in that TV show came through Pro Tools. It's a software suite that on the very high-end is used for these kind of, you know, high-end TV and film productions. It's also used for individual creatives that wanna make music and just wanna create sounds. The span, that product has several tiers, from an intro premium tier to get people in, all the way up to a higher price we call the ultimate product, which is actually called Pro Tools Ultimate. That is the high-priced product meant for the more, you know, the highest end professional market. We have a tiered system of pricing and value that we put in that market. Okay. Music has always been a part of our business, more at the high end of music, recording studios, recording engineers, producers. Music creation, actually, we call it the music creation markets, where people really create on the device. They don't really use a lot of instruments or studios. They really just create, you know, music within their Mac or their iPad. That's a really fast-growing market, has been for some time, and Avid will be making, as we've said publicly, some pretty strong inroads for the Pro Tools into that space later this years Yeah. I think, you know, in terms of the addressable market now that we're moving into music creation, within the Pro Tools ecosystem, you know, it's gonna go up by a factor of 3x or 4x for us. Sure, we've grown. You know, we have 300,000 subs in Pro Tools today, but now that the addressable market has grown from, call it $1.5 million to $5 million, we have substantially more opportunity to continue to have rapid growth in our Pro Tools business. Right. On the pricing, just, help us understand how that's evolved and where you're seeing incremental demand for increases in ARPU for that part of the business. Well, we generally have The reason we have a tiered product offering is that, you know, the goal of any subscription offering is to walk people up what we call the value ladder, and walk them up through the value that we offer and continue to hopefully get them to upscale on what they're choosing from a product standpoint. In the lower end of the market, it really is about a volume play. It really is about, you know, number of creators you're trying to get into the ecosystem and then take them through the subscription journey. On the higher end, we've been trying a few different things. What you'll see if you look in our, you know, the public guidance we've given on the model, is that we will see higher ARPU, really develop out at what we call the ultimate product or the higher end of the product, as we are innovating. We have some innovation under way to bring more value to the high-end recording studio and high-end audio post facility, and we expect that to drive higher ARPUs on the high end. Really our goal is at the upper tier, really drive higher ARPU. On the lowest tier, it's really about a volume game. Then in the mid-range, it's really about trying to monetize more of those users. You know, not just for what they spend for the subscription for the DAW, but how we monetize content, how we monetize plug-ins, sounds. Mm-hmm. -loops, things that can be monetized as they're working inside the application. Talk about the competitive environment. Who are you? What's the choices that other, folks have out there? Yeah. In the high end, well, there are choices. In the high end, there are companies, like Steinberg, who's a division of Yamaha, that has got offerings in that space. Blackmagic is trying to make a move at the more audio post space. In the higher end, Pro Tools has a pretty large market share, pretty significant, so we're a formidable competitor in that space. As you go move down into the more, you know, let's say, mid-market and low markets, even into like prosumer markets, in that market there we have a number of competitors, Apogee, Ableton, it's a company owned called Ableton. They're called Ableton Live. Companies like FL, that make FL Studio. There's a number of players in that space. What spurs kind of that lower tier to upgrade to kind of the Avid solution? Where does that tipping point happen? Well, today, the tipping point happens when someone is really serious about their craft and serious about making music, and let's say they wanna put it on Spotify or they wanna, you know, get it somehow, try to get it out there more than just maybe your five friends that you're gonna, you know, send a link to. You generally have to go to Pro Tools. Pro Tools is the industry standard. The files that people exchange in that space is called a Pro Tools session file, so it's pretty much the standard. Once you're getting more real serious about your craft, if you're gonna mix, edit, master, you generally are gonna end up in Pro Tools to do that work. That brand value or that brand halo is part of what we're bringing to bear as we go after a larger swath of the market, you know, go more down market, just because there's a pretty significant brand halo in that. Sometimes when music studios decide to upgrade their hardware, software, and services, how does that spur and what's the kind of replacement cycle for some of these studios? Yeah. The reason that we do still make some hardware in the audio business is it's really, most of it's really around two product areas. It's around the control, we call it the control surface, and I'll explain what that is, and the IO, meaning the how to get in and out of the software, basically. You know, 'cause there are, you know, there's still microphones, there's still analog devices in the world that you have to get in and out of, especially when you're in the more traditional music space in a studio, or in audio post-production. Those products are used basically to create a more powerful solution around Pro Tools. The control surfaces are nothing more than giant remote controls for Pro Tools. They're literally faders and knobs that control the Pro Tools software, but they do it in a way that allows these people to work like they wanna work when they're in a recording studio or in their an audio post-production suite. The IOs actually aren't just dumb IOs. They're actually powered DSPs that we have something in Pro Tools called the Hybrid Engine. Really simple what that is all the power of the software, we can actually move instantaneously out into the hardware sit in the IO, and it really allows us to offload certain capability. It basically makes the system very powerful. When they're dealing with thousands of tracks or they're dealing with a lot of things happening simultaneously, it makes for a very powerful solution for that market. That, for us, is really just where we're creating a solution for the high-end market. It creates a very significant brand position and market position in that space. As you get more down into music, it really is much more of a pure software play. Gotcha. for the individual. As we think about the freemium model. Mm-hmm. you talked about college students and, you know, driving- Actually, anybody. Yeah. On the music side, Pro Tools Intro is a freemium product. It actually is the same Pro Tools. Pro Tools is one actually code base or one binary that we load down onto a user's machine and then, you know, if you haven't paid for it, Intro turns on, and it's a free version of the product with very limited capabilities. It's the real product. You're seeing the real product when you play with it. If you wanna go to the Artist tier it, and pay $10 a month, it gives you certain capabilities, more and more tracks, more capability. When you go up to the highest end tier at, what is it, $60 a month, then you're getting thousands of tracks and, you know, a lot more capability. Gotcha. with the product. You pay for what you use basically in Pro Tools. Right. Then on Sibelius, talk about the traction there. Yeah. Sibelius is a, we call notation. It basically is a product that is how people write music and score music. It's a small product. It's a nice little profitable product line. I think it's $10 million-$12 million a year. Right. I think right now. Okay. It's for us, it's just, it's a nice entry for the student and education space. It's a nice companion with Pro Tools in the education market that we do. Itself is just a nice profitable product. You're gonna see us over time, though, integrate more capabilities between the Pro Tools engine and Sibelius capabilities. I think you'll see a lot more cross-functionality in those products as we move forward. Okay. AI's been a big topic- Sure. To say the least. Where are you seeing this? Is it a threat or is it a complement to the business? Just talk about the general sense of, you know, AI on the. Yeah. For us, it- Content creation. I'll tell you, as a person in the technology space, I do find it a little funny that all of a sudden everybody's talking about AI. We've been talking about AI for three years in our company, working on it from a development standpoint. Obviously, ChatGPT, when they went wide with that and let everybody try it, that kind of changed the game when people actually saw what actually has been under development for quite a while. I think obviously it brought it to the attention of everybody when they got a chance to play with it and see it for their own eyes. AI for us, we see it as a real advantage. Again, as a company, we have both. I always joke that we're kind of a left brain, right brain company. We have the creative side of our company and the enterprise side, cause we both help the creative professionals, whether they're independent or if they're part of a Disney. We help them do their work and create, but we also help the enterprise run the apparatus. You know, I always tell people that the media industry is really nothing more than a big factory. It's a big supply chain. We're just making fancy stuff at the end. We're making movies and TV shows and music, but it really is in its most basic form, just a supply chain. One of the things we also create is a lot of tools in how people manage resources, workflows, content, and so there's a lot of tools, and we monetize a lot of that for the big enterprises. AI on the, let's say, the enterprise tools side, we can kinda call it the NetSuite for media companies for media production, is on that side it's really about efficiency. Everything that we do as a company on the enterprise side is about how we create more efficient ways to create content, manage content, manage resources, and manage people. AI is a, we think is a real enabler to innovate in that space because what we get paid to do is to save money for people. How do we make things more efficient? The more we can bring AI to bear in our tools, people will invest in technology that will save them money, obviously. We all know that. We think AI is a real boon in that space on that side. On creative, I know there's a lot of discussion around how is, you know, generative AI gonna just replace creativity. I don't think so. Does it require me to have our communications team write drafts for me anymore? No, I can write my own draft now. I just tell ChatGPT what I want, and it'll give me a draft. I think it's gonna change some things in the world, but I think from a creative standpoint, I think it's gonna help creative processes generally. There's a lot of creative work that is not really creative. It's administrative, it's burdensome, it's time-consuming. Everything that AI can do to remove that burden from creators so that they can create and not, you know, manage files or things they do, I think AI will do a lot. AI will do more than that. AI will help them find scenes. It'll help them with speech-to-text. It could help them create an image they need. Where, "Gee, I've seen a background of a beach with a sunset," and, you know, to do that today, you've gotta go find a lot of people to go create this background for you. You know, there's a, there's a world where, you know, generative AI will help in the creation of this content. There still, though, needs to be a creator, somebody that's human. Not to say that they won't use, you know, AI to create, you know, cat videos for TikTok, but, I think that for what we do in the more serious creation, there'll always be a human creator. It's just how AI is brought to bear to help creators do more and do it better. Gotcha. What are your thoughts on kind of some of the legal aspects of you know, AI usage in content creation? I think for me, that's one of the big things that's gonna stop people from using it too quickly, is that. I I mean, it's nice if AI can help you with, like, a speech-to-text conversion. That's nice. It can tell you where all the words in a video so you can search easily to find that take where somebody says something specific. You wanna go find that take. AI can really help in ways that other technologies are a little more cumbersome to do. I think that when you're talking about creating content, actually generating content, that's a dangerous place because these models are consuming content that may be in the public space, but no one's controlling it to tell it not to grab copyrighted content or copyrighted images or copyrighted video. When it's creating, I think it's an area of law that probably we're gonna have to see how it plays out. When you're creating something from the IP of somebody else, whose IP is that? Clearly, I think there's gonna be a lot of legal discussion around this, and I think it needs to unfold. Same thing like writing code. If you tell it to write code for you, did it write that code because it took someone else's idea on the code? Is some of that IP now in your code? I think it's an area that it'll get solved eventually, but I think it's an area where when people say we gotta slow down a bit, I think it's areas in generative AI where you have copyright infringement or IP infringement that I think we gotta be careful. So how is- It's unproven land, I think so far. Yeah. How is the company kind of evolving with some of the advances in AI? How is your thinking changing on how you're, you know, providing some of the integration with, you know, Pro Tools and Media Composer and what not? I think we already integrate to the Azure AI model. We've been integrated to that actually for about a year, a year and a half, where people can. If you're in MediaCentral is that kind of back room. It's kind of enterprise class platform, software platform that helps media companies manage media workflows and content and et cetera. We have an integration of Azure today, you can actually, you know, send things out. Like maybe you don't have the metadata around something, or maybe you wanna find every picture of Paul I've ever recorded, right? Find me all the Paul pictures. Well, AI is great at going out, looking through images, and then coming back and saying, "Here's every image of Paul we could find for you to put in your video." There's. That integration exists today in MediaCentral, and we do that to the Azure platform. That integration is widening out now as we see more and more players coming with real commercially available AI tools. We'll continue that integration of our platform to AI that's out there and, of course, we'll look to monetize that as it comes into our platform and, you know, kind of a marketplace play for those AI assets. We're also developing AI tools inside of our products. Things like speech-to-text, image recognition, scene detection, automatically creating a chord progression or helping you with your beat or your melody. There's a lot of things we're working on today that you'll see coming. Things like semantic search and, there's a lot of power I think we can bring to our tools that will really help people right away. Gotcha. I would stay tuned. You'll see some of this capability hitting more of our products in 2023 and 2024. Okay. Great. Let's move to Media Composer. Yeah. Kind of the overview of what that product is. Yeah, just a general brief. Yes. Media Composer, unlike Pro Tools, Pro Tools is, of course, it's, as I said, it's a product that's used very heavily at the high end of audio and sound creation. On the video side. I'm sorry, Pro Tools also goes downmarket into more the, you know, prosumer space. That's not the case with Media Composer. In the video and media side of our business, we really are sticking to the enterprise customer. Yes, we sell to individual creatives, but those are creatives that work on TV shows or feature films. Our individual creative business on the video side of the business is really more about those serious creators that are part of the industry ecosystem. Yeah, we do get people who swipe a credit card and buy it for themselves. That's okay, but we don't necessarily target those people aggressively. We're really more about the enterprise, whether it's the very large enterprise or whether it's SMBs. We're very focused on the people who are in the business of making, in a business of media, or they're in a business where they're using media, like JPMorgan, where you have some of our Avid tools, you know, where they're using media, high quality media as a part of whatever they're doing as a company. Media Composer is the video editor. It is the equivalent to like an Adobe Premiere Pro. Adobe is really focused heavily on the mid-market on down. We're really focused on the mid-market up into the very high-end. If you watch a Marvel film or you watch a pick your streaming show on any one of the big streaming providers, again, eight, probably eight times out of 10, it's edited in Media Composer in that market. It's a well-used product in the entertainment field. It's also used in news, sports. If you watch NBC's coverage of Olympics, all the storytelling you see is all done in Media Composer. Yeah. Um- It's the industry standard, you would say? Yeah, it's, for the high-end, it definitely is industry standard. In the video side, I don't see the same market opportunity. I don't really need to go up against Adobe. Adobe's got a great business in the, in the wider video creation market. We're really focused on that, you know, professional, where people are focused more on the solution. We're not just selling a point product tool in the media space. We're really selling a solution in that space. Quick update on the writers' strike. Yeah. Are you seeing any impact to the business there and, yeah, just? Not yet. It'll come. I mean, I was around in a leadership role in 2008, so I saw the impact of the last writers' strike, which if I remember, was around 100 days. My guess is this one's gonna probably be around the same, maybe a tiny bit longer. Let's hope it doesn't go beyond that. It'll take, you know, especially that they started it in May, this is a lull in the production season. It doesn't start really back up till the end of summer. They got a little time to, I think, to negotiate. I think it'll probably get pretty intense in the fall as they try and need to get back to work. Okay. You know, again, that's just my own personal... I have no idea. I don't, I'm not talking to studios to know where negotiations are. The strike will generally cause a little bit of a slowdown temporary. Business won't disappear. It just will defer. You know, they still have to, when that show gets the scripts writing again, they still gotta get back into production for that show and get going. In fact, what you do see, you can see a little bit of a lull, and you'll see it's kind of a rubber band. You'll then see it peak and then get back to normal after that. There's gonna be a little bit of an S-curve, I think, from this. It's only a part of our business. You know, our business is in music, news, sports, and entertainment production. The writers' strike, it'll be only about the real high-end entertainment production. It's in Hollywood and New York and Atlanta and maybe London. Beyond that, you don't really see as much impact from that strike. Okay. I just wanna say that, you know, for our company, as we talked about on earnings call, bookings growth for the first quarter was very strong. The writers' strike may, as Jeff pointed out, may have a little bit of ebb and flow in certain revenue streams, potentially between Q2 or Q3. In general, you know, the business remains in really solid footing long term. Yeah. It's gonna impact more capital one time. I wouldn't say impact. It's gonna maybe defer it a couple, three months on some investments. I think the fact that we're a recurring revenue business, we're such a large recurring revenue business today, subscription-based, I think we're not gonna see anywhere near what other people would see. Again, if we see anything, it's not knowing where it's gonna go. Any impact is gonna be a near-term headwind. It's only a near-term headwind for a small portion of our business, not the entire business. Okay. It will correct itself because productions will have to get back into production. All right. As we move beyond that, let's just talk about sub growth, how that's trending, and then the enterprise mix- Yeah Where that's heading and how that kind of boosts ARPU overall for the Media Composer business. Yeah, no, we've been very pleased with, you know, the enterprise growth, both, you know, the MediaCentral as well as Media Composer as in now storage moving to subscription. We continue to be in that long-term plan. In terms of the how it relates to ARPU, you know, the enterprise seat is a multiple of three to four times a creative seat. As that mix on enterprise grows, that's pulling our overall ARPU up. You know, per our last earnings call, our overall ARPU was up 7%, and we see that trending positively as we move through our model. Okay. Then talk about the kinda cloud coverage across Google, Azure, and AWS. How do they differ? Does it matter? Now that you're on all three platforms, just talk about the kinda differences there and how you expand your customer base as well. Yeah. This is interesting part of our business. A lot of our transition so far has been to more on-prem or on-device subscription. Now the SaaS part of our business, the real cloud part of our business where we're running things in a public cloud or a private cloud. That is starting to get meaningful, but it's still in the very early days. I always joke with Ken that, you know, if it were a baseball game, we're still getting the kids out of the car. In the SaaS business, we're maybe subscription, we're maybe third or fourth inning in. On the SaaS business, we see a lot of opportunity for the company in a couple of sense. One is, we started the migration. The industry has been, let's say, playing with the move to the cloud for a few years, but they're now starting to get to an inflection point as an industry where they're really starting to move pretty substantially. We initially started with just Azure as our partner. They are still our preferred partner, but they're been a close partner of ours, like our own SaaS offering runs in the Azure environment. You know, our stack, including NEXIS, our NEXIS storage file system is all in the Azure environment, so is Media Composer, so is MediaCentral, all of our core products. But we did a lot of work in that environment for Disney, for Paramount, for even NBC in the Azure environment, and that's been going really well and things have been growing nicely there. We also signed, which we announced a few months ago, a program with Amazon, both with AWS and Amazon Studios, which is for Prime Video. They are building a studio in the cloud. They have a strategy and a vision for building a studio in the cloud, which means that they're going to be able to deploy the production technology stack to a production anywhere in the world directly from Amazon, through the AWS cloud environment, and really creating a very direct connection of technology deployment and to make it very fast and flexible, and I'm sure cheaper to power these productions. That has been in development with Amazon for about almost a year. We start putting pilot shows on this summer. Then we'll start migrating shows starting later this year and in through 2024, where I think within 18 months, they'll be, you know, probably almost all cloud-based in the productions at least that they control in Amazon. At least that's the vision they have. We're excited about that. We're just getting that going. When we get that work done, other customers can leverage that technology with AWS. Then finally, we've just announced a few weeks ago the project with Google or GCP and TelevisaUnivision, where TelevisaUnivision, we're gonna be helping them take all of their. You remember TelevisaUnivision merged as one company between Mexico and Miami or the U.S. They've got a very aggressive, you know, say transforming cloud vision for the company on how they're gonna leverage the cloud. For the next, let's say couple years, we'll be working with them on really deploying the same thing in GCP. As you get to, you know, let's say end of this year, we'll be able to start deploying other customers. We'll be deploying Amazon Studios on AWS. We'll be able to start deploying other customers in AWS. Late next year, we'll be able to start deploying people in the Google or GCP environments. For us, we've become multi-cloud. Each of these companies have not just gotten work with us, but they see the value of Avid in these environments, and they have invested in these partnerships. We're pretty excited about all these projects, and then what that means for the future as we will become very multi-cloud. Who, you know, what people wanna deploy on, to us, that's their business. You know, we'll make our own decisions as a company where we run our SaaS services. Where customers wanna deploy is really kind of up to, up to them. Yeah. I'd say just in our long-term model with respect to cloud, we put out in our public guidance, kind of a 2025 targets. That was before our announcement of Amazon and Google deals. We've, you know, with those two partnerships with the continued innovation plan, around those two hyperscalers, you know, we feel even more bullish on the cloud opportunity, and that will obviously provide a higher quality revenue stream and drive more margin as we move forward. I didn't answer the other half of your question, Paul, which is how do we see it growing the footprint? Avid is a solution set of software products and some cases hardware that, at least in the past it was hardware, it's now becoming SaaS, where we are the, you know, we are the high performance leaders. You know, we're not, we're not inexpensive to deploy. One of the things we found as we went to SaaS, we have a SaaS offering now called Edit On Demand, which is a basic editorial suite that you can turn on in a matter of an hour and you can start editing, and your entry point is much lower. You're not having to make a big capital outlay and have somebody build a suite for you and all that's included in that. You literally can make a decision and have it on the same day and start editing at a fraction of the cost of you having to build your own room. What we saw from the early days of that launch is that logos were coming on board with us that we had never even heard of. Companies were like, "Who is that?" So people who knew who Avid was, but they didn't think they could afford Avid, and they saw this as an opportunity like, "Hey, I can get to Avid too in the cloud." As time's gone on, we've seen that more and more that I think cloud, one, gives us an ability to really expand our new logo. I mean, subscription has helped us get to new logos. The old perpetual CapEx model was a little bit harder. As we went to subscription, it really allowed our commercial teams and our channel to go after new logos. We saw a lot of improvement in that. If we go to SaaS, we're seeing an exponential difference where it really is, the barrier to entry is quite low for people to go to Avid. The other thing we're seeing is that workflows that people wanna do in the cloud, they're asking Avid to go beyond what has been our traditional area where we've monetized workflows. We gave an example. We published together with Walt Disney Studios something called the Editorial Library, which is this very innovative kind of cold storage, archival storage idea where all of the Marvel films ever made and all the Marvel TV shows ever made are literally. Normally, when you archive something, you finish a movie, oh, sorry, and you put the finished movie in an archive. Here, they put all the raw assets from when the production was live, and they archive the whole thing, and they can bring it back up to life in a matter of an hour or two and be able to bring a production because they can get the content quickly and reuse stuff. That concept was very innovative. It's already been award-winning. We're gonna see that idea really play out, I think, with a lot of customers in the cloud. We're gonna see cloud innovate the way people use the technology to change what they're doing. Great. I guess going back to those long-term goals of 2025 hitting 10 points of CAGR on overall revenues, it sounds like you're a little bit more bullish there on the cloud aspect, but just talk about, you know, the pace we're on now and probability of hitting those targets. You know, we feel good about the long-term model. In general, you know, in terms of the growth that we've seen, the subscription business and the creative side remain solid on the enterprise side. It's moving forward at a nice progression, cloud provides a you know, more opportunity. You know, our integrated solutions business is gonna really, you know, will continue to provide, I would say more, you know, GDP-type growth. More of the growth is in the software side. As that mix changes to software and subscription, we will continue to have, you know, better margins. We are investing also in a digital transformation program. We expect that to conclude in towards the middle of 2024. That's gonna result in a new ERP, a new CPQ, which will streamline our sales force and billing engine and a new e-commerce site. We expect that as that completes in 2024 to result in $8 million of cost savings, + $20 million to $30 million of revenue uplift. That program, as it comes in in 2024, is gonna have meaningful improvement to both revenue and cost, driving more EBITDA and cash flow. We feel good about the 2025 targets. We have about a minute left, so I hope we can get to questions, but, you know, given with how the stock has kind of traded off, you know, what can get people excited about the story? What's misunderstood now, and what are some things to get the momentum back? Well, I think, look, we've always been believers. Ken and I have been believers from the very beginning to keep our eye on the horizon, to keep our eye on where we're taking the company and the growth over the near term. You know, we talk about writers strike, we talk about certain things. Like, those are very short-term, very near-term things that we have to deal with. I think the one thing the management team hopefully has shown the market is as we've gone through pandemics, you know, the war in Ukraine is a big deal for us. We had to turn off 4% of our revenue in Russia and CIS half of our development team or a third of our development team is in Ukraine. Supply chains, et cetera. I think this team has really shown that, you know, even with headwinds, we will deliver profitability improvements year in, year out. I think we keep our eye on the ball on that to make sure we're continuing to drive improvements in the model over time. As far as, you know, top-line growth, et cetera, even if there are slight headwinds, they don't deter us because it really. We know the value of our brand, we know the value of what we're doing for our industry, and I think when you look at our model, we're very confident where we're taking this company and, you know, the kind of, you know, business opportunity we see ahead of us and how that equates to growth and profitability going forward. Great. Well, that's a wrap. Thank you for your time today. Thanks. Thanks, everybody. Thanks, everybody. Thank you, Paul.