Last and final day of the conference. Thanks for joining us. Ygal Arounian, I'm on the internet team here at Citi. Really excited to have BARK's CEO, Matt Meeker, and CFO, Zahir Ibrahim, with us today, to kick off the day. Thanks for joining us, guys. Thank you. Yeah, thanks. All right, I'll start with the macro. You know, maybe focused on consumer discretionary spend. It's been a headwind around much of e-commerce this year. You called it out during your last earnings call, kind of specifically around the impact around the direct-to-consumer side. You highlighted some sequential improvements from May to July, but what you're seeing in the macro today and how it- Hey, just tell us a little bit about what you're seeing in the macro today, how that sets expectations for the rest of the year, and kind of more importantly, how it's impacting the direct-to-the-consumer trends in the toy business, around discretionary spend. Just start on that. Sure, sure. Yeah, and you summarized it well. I mean, we're hearing it everywhere. We heard it recently from Chewy in their earnings, that there are those headwinds of, uh, around the discretionary categories, especially, and as you said, across e-commerce and direct-to-consumer. And we called it out. We said, we're especially in acquiring new customers into our toy business, uh, it's been tough sledding, but sequentially from May to June, June to July, July to August, we've been improving every month just a little bit. Uh, the other good news there is, we're largely a subscription business on the toy side, and our retention rates and our cross-sell rates are as great as they've ever been. So we're taking those customers that we're acquiring and successfully holding onto them, and then moving them into new categories. Uh, that's the good news. More good news is, as you know, our strategy, our focus for the future here is on the consumable side, which is largely at our unified platform, bark.co, and is selling really well and experiencing great growth on that side. So yes, a big part of our business is discretionary toy subscription direct, and we feel those headwinds. I'd say the last part, which is an opportunity for us to power through those, maybe a bit better than others, is, if we go back to that April to May timeframe, our execution in acquiring new customers and our marketing just hasn't been as good as it could be. Our execution is poor. It's getting better and better, but while we face those headwinds, we can execute a lot better and pick up our growth rate through that. Okay, good. Let's just dig in on that. That-I think that's a good point. So just on, on the new customer side and execution, but you want to elaborate on that? What, what hasn't been great, and what can you do to get it better? Sure. I mean, our business is almost 12 years old, and we've grown up with a marketing playbook that's very specific, very performance driven, bottom of funnel, direct response. And, believe it or not, over 12 years, tactics have changed. The world's changed around us, and we haven't. And so we need to- How has the world changed? A little bit. State the obvious. I haven't noticed. No, but we need, we need to adapt our playbook and lean into more awareness. What we've seen in data from all over the place is there's a market that we serve really, really well, and we've saturated it completely awesome, that millennial women love us, and millennial, urban, coastal women love us to death. But there are seniors who have dogs, and there are people in the Midwest who have dogs, and there are people in the suburbs who have dogs. There are so many audiences that we haven't built messaging for or built awareness to target. It's just a rich environment for us to adapt our methods. Okay. All right, that's great. The first time I've heard you kind of refer to, to that, and that's, that, that's good to hear. So, we'll talk about a lot of what's changing. Let's maybe start just on, maybe for Zahir, on the 2Q earnings call, you guys provided guidance, revenue guidance for FY 2025, for high single digits to low double digits. And you're already in, you're in FY 2024 right now, so- Yep What, what gives you confidence that you can hit this target given the environment? We're still early in the fiscal year. You know, what, what is that bridge from where you're, where you're guiding this year, if it's just flat to minus five, to high single digits to low double digits next year? What needs to happen? Sure. I mean, coming into the year, we knew, we had some tough comps in the first part of the year relative to last year, and we also knew that we'd gain momentum during the course of the year. And the year so far is largely playing out that way. If you look at it, I mean, Matt's talked about on the toy side, we've got some headwinds and challenges. We expected to see that. But when we look at D2C, it's a unified platform that we've been investing in. That's starting to grow, pick up momentum. You're seeing high conversion, high average order values, and revenues picking up strongly. And so while it's small today, that's gonna continue to gain momentum. So we see that building through the course of the year and going into fiscal 2025. On the commerce side, you know, consumables is gonna be a big play for us. It's a white space today. We're in 40,000 doors. We sell toys only. There's a lot of pull from the retailers for us to bring our fun brand into center store, in the treats aisle, and things like that. And, you know, we're pretty far down the path in terms of conversations with major retailers in terms of getting distribution. And at some point over the next couple of months, hopefully we'll have some good news to announce as well. So that's our entry point into commerce, and we see that building again in fiscal 2025. So those are the areas that we see a lot of growth and improvement over the course of the balance of this year and then going into fiscal 2025. Okay. Let's stick on that, the commerce point for a little. So just to be clear for everyone, commerce is selling into the retail channel versus selling directly to consumer through your website. You're focused a lot more there. Is it a shift in strategy at all? Is the direct-to-consumer piece less important? Do these two work side by side? And how big a part of the business do you think the commerce part can be? They're equally important, they need to be, and they haven't been historically. We have been very direct, direct consumer-focused, so it's reflected in our revenue. 88% of our revenue has been on the DTC side, and we've made the conscious effort to say, "We need to really, really grow," and consumables is a category where there's- The categories we're playing, there's $40 billion-$45 billion of opportunity, so we can make a huge dent in both consumables and in that retail channel by focusing there. They play together in that the benefit of our direct relationships is the nature of our subscription boxes. We can put anything we want into that box, send it out to the customer, and then get feedback. So we can take test products or things that we think might work in a retail environment, put it into 10,000 units in a month, get feedback, and then take that to our retail partners and say, "We found it. This is a treat that the customer loves." And the retailers love that, and they put it on shelf, and we outsell everyone. That's been our playbook in toys. It's worked really well. We're going to adapt that to consumables. And as Zahir said, we've started that process of selling with a couple big national retailers that would span a few thousand doors for our first six SKUs in the treat category. Feeling pretty good about that. In addition, when we talk about the consumable or retail side, in our minds, we put partnership in there too. So we have a history of unusual, I'd say, like, retail relationships. Like, a couple examples are, we sell toys to this day through Subaru and through their dealerships. It doesn't come to mind as a retailer when you're thinking about it, but it's meaningful for us. Dunkin' is another retailer, I think about 9,000 doors. And recently for us, we have a pilot program live right now, that we haven't talked about before, so breaking news here with, with the Girl Scouts of America. We like breaking news here. Yeah. So the Girl Scouts are selling a co-branded Bark product right now on a pilot test basis, and if that expands, well, we all know, they, they go out and they sell. There are millions of little girls out there selling cookies. They would add, hopefully, Bark products to that if, if we're successful in the relationship. Okay, great. The early signs are that it's gonna sell out faster than what we'd expected, so- Yeah -everything's giving us good signals. It's a program that you build on over the next two to three years, and it gets a lot of momentum and traction. Okay. Are there more of these kind of creative retail partner opportunities out there? Absolutely. Yeah. P retty, pretty early in that path. Yeah. That's it. But also with a good history. I mentioned Subaru and Dunkin'. We've done something with Budweiser in the past and created what was called the 7-Pack, 6-Pack of beer for you and another bottle, which was a dog toy for your dog. So, you can attach that to just about any brand, and we've, we've scratched the surface. Girl Scouts were so excited. It's, it's massive, obviously. Okay, great. Okay, so we're- You're originally more of a toy company. You're moving a little bit more on, onto the consumable side. What's that mix right now? Maybe just talk about kind of treats versus food and dental, where you are and kind of where you're expected to get around that. Yeah, I mean, Matt talked about channels, so, you know, 88-12 between DTC and commerce. On the food side, toys and consumables, we're about 70% toys and accessories, 30% consumables. And, you know, the way we look at just the roadmap over the next three to five years, that's gonna be a more evenly split business, potentially with consumables being a larger part of our business as you look three to five years out. A lot of that's gonna be driven by retail expansion, but we shouldn't underplay the opportunity that a unified platform offering our full suite of products offers to us. This, the ability for customers to come in, they may originally be coming in to look at one of our subscription boxes, but now they've got easy access to the full suite of products that we've been developing over the last 24 months. So that cross-sell will really help- Okay -on the consumable side as well. All right. Well, we've hit on the unified platform a few times. I just wanna make sure everyone understands. So maybe just to level set what that is and why is it so important, why is it driving some of these improvements that you're seeing? Sure. When we started, we started with one product, which was BarkBox, a monthly subscription box of toys and treats. And so we had one website, barkbox.com. And as we built more products, the next one was Super Chewer, which is same format, more durable toys for a different dog, and then Bark Bright, our dental product, and then food. And we found ourselves with five different websites that only had each of those individual products. So, just over a year ago, we brought all of those products together on one website in order to make it easier for customers to discover those products, and instead of just check out with one, check out with multiple. It's been working really well. We've been improving conversion rate, items per order, average order value, over the past year, and like I said, it's working really, really well. So the other benefit of it is we were able to modernize our platform and go from something that was built on rails and takes many, many engineers and product managers to build, to Shopify, which makes things much more efficient. And you're not maintaining five websites, you're maintaining one. So we can do a lot more efficiently, move the customers between products. And if it plays out as we expect it will, you start to see the lifetime value of every customer moving up. Okay. So is the unified platform part of what you talked about with the marketing strategy and being able to hit a bigger part of your market more efficiently? It makes it a lot easier. With multiple different web properties, you have a lot of these discussions about where are you going to point the traffic. You don't get the SEO benefit, or it's dispersed more. So having one central location is a huge benefit for the marketing as well. Okay, great. So on the consumable side, I don't know if it makes sense to talk about each separately or kinda collectively. How do you think about the balance between retail and direct-to-consumer? Or can these be monthly subscriptions as well, or are you more focused to make sure that they're in the retail channels in the right way? Both. Some products lend themselves to monthly subscriptions more than others. Food, as an example, or kibble, we feed our dogs every day, every month, and so that is a natural for a subscription relationship, and we see that in the customer interactions we're having right now. Our dental product is meant to be a daily application, so we see pretty good subscription there. Treats, not so much. We make it available, but customers don't really take it as much, but that's okay. But all those products are also available in the retail channel, and we'll sell where the customer feels comfortable in buying. We just need to be in front of them. Okay. Well, what about your retail partners? Are they comfortable with you selling or putting those things in your subscription boxes and selling direct-to-consumer? Do they want exclusivity? Do you have exclusivity with retailers? They have historically not had any issue with us selling directly. In fact, they've realized that they benefit from it because we're able to try so many different things and then bring them the best of the proven best of, that gives all of us confidence that it'll sell on shelf. They certainly have exclusivity concerns, if you will, about their competitors, but- Right And so we get into those discussions, and it's important. It's important we choose the right partners, especially when we're launching in new categories like treats, that we choose a partner and build a relationship where we're going to grow together, and we're gonna learn together and set up that dynamic. And in exchange, they want some benefit from helping us learn in the category and being patient with us. Okay. But there's no, I don't want you to sell direct-to-consumer. They're happy to kind of have both channels. So far. Okay. So far, yeah. All right. Zahir, as you make this shift and you, you're doing, you know, a bigger part of your business moves to commerce away from direct-to-consumer, just how to think about the financial impact, the different margins. Is one better than the other in terms of kind of net margin? They end up being the same. Just talk about like, the structure there. Yeah. As we start shifting across to channels, more and more of the business coming, or growth of the business coming from commerce. The commerce margins today are around 40% DTC. Gross margins, DTC is around 60%. But when you look at contribution margins on the commerce channel, they're as good as, if not better than DTC, 'cause you have lower cost to serve. So shipping and fulfillment costs are a lot lower, 'cause a lot of the time customers pick up. There's less of a marketing effort, in that channel as well, so you get a lot more scale for your dollars, in those channels on the marketing perspective as well. So net-net, you know, growth in commerce is accretive to operating profit and is gonna be a major contributor to our profitability growth going forward. Okay. Is the logistics network that you built out for direct-to-consumer, does that overlap with what you're doing in commerce? Can you kind of, you know, play off each other? Does that create efficiencies? Yeah, I mean, we're supplying to both the channels today. We're always looking to drive efficiencies in our supply chain. I think the team's done a really nice job over the last couple of years in terms of looking to consolidate fulfillment centers. I think two, three years back, we had about 11 FCs. We're down to about seven. Our goal is ultimately to get down to three or four. So the opportunities to consolidate are there. The supply complexity, I mean, the more you move to consumables that's sourced in the U.S., you could look at shipping direct from contract manufacturers as well. So we'll explore that where it makes sense. Okay. One of the areas I think maybe investors have a hard time, a little bit of a harder time, is just understanding how you fit into the competitive landscape. Mm. I think sometimes people think, you guys compete with certain players that I think you guys would disagree with. Can you just talk about who your competitors are, who they're not, and how you see yourself fitting in? Yeah, I agree with you. I think we hear more often than not, it's a natural comp to say we're competitive with Chewy, for example, right? And we view Chewy, not just view, but that Chewy is a partner. That's a place where we think of ourselves as a company that creates really great products, and we're happy to sell those. We're thrilled to sell those everywhere. If that's Chewy, or Amazon, or Target, or Walmart, Petco, PetSmart, those are partners in distribution channels for us. So, we don't see ourselves as competitive there. We see ourselves as competitive with, we need to make the best treats, and food, and dental products, and toys that are in the market, and be competitive on that angle. Right. Okay. Well, let's talk about profitability for a little bit. So talked about the macro. So some of that's not in your control. Profitability is a lot more. You've been focused on getting back to adjusted EBITDA profitability. There's been a lot within that. Renegotiating some supplier and fulfillment contracts. You've undergone a couple of RIFs. So just walk us through the actions here that you guys have taken, to get there, and kinda where the timeline to get to profitability and the key components of it. Yeah. I think Matt and the team have done a really great job. I mean, I've been on board seven or eight months now, but I think the journey started probably a couple of years back when Matt came back into the business. And there's just a focus on driving improved unit economics, driving higher average order values and things like that. So when you look at the P&L and financial health of the business today relative to 18 months ago, it's a step change improvement. You look at revenue, our average order values are higher because we've improved our cross-sell, 'cause we've got a bigger offering of products that we can offer to our customers. And then, when you look at the cost structure of the business, a lot of the things that you said, supplier consolidations, benefiting from efficiencies of scale, have had a positive impact on cost of goods and shipping and fulfillment. So a couple of examples there. On toys, we were working with over 20 suppliers. We consolidated that down to a handful. Now, we're one of the biggest toy, dog toy companies in the U.S., so we've got scale. We're able to take that scale to this handful of suppliers, and we've had a reduction in our unit costs. We've started seeing the benefit of that flow through in the last few quarters. It's still not fully in our P&L, 'cause we're buying those products now. They're working their way through inventory. So, you know, sequentially through the balance of the year, you'll see more and more of that benefit flow through our P&L through improved margins. Similarly, on the consumable side, you know, a third of our business is consumables, so we've got decent scale. We're one of the largest treat suppliers in the U.S., and we're working currently with over 30 suppliers. Again, we're consolidating that down to a handful. Those contracts are being renegotiated as we speak, and so we'll see the benefit of that similar sort of, you know, cost reduction on a unit basis come through the P&L in the final quarter of this year. So the full benefit of that is gonna hit in fiscal 2025. So those are two, you know, positive items on COGS. Shipping and fulfillment, we talked about, you know, just consolidating, supplier relationships, renegotiating some of the terms, consolidating shipping, fulfillment centers. Fiscal 2023, we reduced our shipping and fulfillment costs by 200 basis points on fiscal 2022. We'll see improvements in fiscal 2024, and we'll continue to see improvements on that line going forward into fiscal 2025. And then on G&A, as you mentioned, we took a couple of actions this year, relating to headcount and other G&A costs. They'll improve that line item by about $20 million. So G&A is in a good place. We'll always look for efficiencies and how we can do things better. As the nature of the business changes and evolves, the G&A will flex. We are gonna get a ton of leverage as we, as we grow as well, 'cause we're not gonna put, you know, the equivalent amount of dollars into that line. And so you look at just the profit improvement over the last 24 or 18 months, really, for a similar set, level of revenue, you know, we've improved our profitability on fiscal 2022 by $50 million-$60 million at EBITDA. And then against fiscal 2023, we're improving by $20 million-$30 million. So all really great news. I think the most important thing for me is stronger financial health gives- So now to try and take some of those measures to drive the business on. Great. That super detailed, just on that marketing point, you mentioned that as a cost lever. Do you see leverage there? Obviously, we've talked about how important, you know, what some of the challenges around customer acquisition and the importance, some of the the segments that you want to go after. Is there scale leverage there, or are you continuing to invest on the marketing side? I think on, certainly on the commerce side, you're gonna get a lot more leverage, right? You've got, the more distribution you get, you get far more runway for your market expansion. So that expansion is gonna give us efficiencies there. On D2C, I think Matt alluded to it. We've had tried and tested tactics that have worked for a period of time. We've identified areas that we need to dial things up, dial things down, they'll drive our efficiencies. And there's areas that we didn't really try as tactics from a marketing perspective that will be, strong levers for driving efficiency as well- Okay. -on the D2C side. All right, great. I think one more for you, Zahir, on, so you have been free cash flow positive the past couple quarters, I believe. A portion of that's coming from wind down of inventory. Maybe just refresh everyone on kind of what happened and where you are, and if there's more opportunity on the inventory normalization side. Sure. I think on cash flow in general, I mean, all the improvements on the P&L side, they're one of the biggest drivers of cash flow, clearly. But inventory has played a part as well. And you look at our cash flow situation, similar to our profit performance. So fiscal 2022, our free cash flow was an outflow of close to $200 million. So it was a major outflow. Last year was a major turnaround in that area, so we had an outflow, but it was $17 million. So massive step up in terms of cash flow performance. This year, we expect our cash flow performance to continue to improve. Inventory, the team has done a great job on that prior to me coming in. I've continued that focus with the team. Q1, fiscal 2024, we ended with $112 million of inventory on the balance sheet, and that was $50 million lower than the peak that we had in Q2, fiscal 2023. So a ton of improvement there. I still think there's a lot of runway there for us to work on this. Working on supply lead times, just better supply chain management of our network, reducing FCs, all that sort of stuff, is gonna continue to work that number down. And then just on, specifically on free cash flow, the last three quarters, we've had positive free cash flow combined, so it's been $3 million positive, but where we've come from, that's, that's a massive win, and we'll continue to see positive cash flow generation in the balance of fiscal 2024. Okay. We've hit on this kind of sporadically throughout the conversation, but I want to come back to the cross-sell opportunity. I think both between direct-to-consumer and retail, and also between treats and consumables, there's a lot, and I think that was a big factor within the unified platform. Mm-hmm. What's the progress you've made there, and how much more of an opportunity to, right—Zahir mentioned that's been a driver of the higher, higher AOV. So how do you, how do you think about where you are in that path and what that opportunity looks like? It, it's a huge focus. I mean, for us, we think of that as just unpaid or free revenue generation. We don't have to go out and acquire a customer to increase the revenue. So, it's a huge focus, it has been for years on the subscription box side, where we created a system, I'll say, called Add-to- Box. Very simple. It is what it sounds like. As your box is about to ship, we give you some last-minute opportunities to add things to that upcoming shipment. Last year, that accounted for about $40 million of revenue for the year, so really substantial. Now it's taking those systems and tactics to the unified platform, and it's not just as simple as saying: Your product or your shipment is about to go out, what would you like to add? Although there's that component, but you've added this product, what's the next logical one? That stuff is easy, but the real opportunity is to take one product that we sell and build into another. A perfect example, when you're feeding your dog a food and it's working for you, all the advice, and mine included, would be, "Don't change what you're feeding your dog. It's working, their stomach's handling it. That's awesome. Keep going as long as they're eating it." So, our good faith effort isn't to dislodge you from a food that works for your dog. So, an entry point for us is what's a huge, fast-growing category called food toppers, and people use that to change the flavor of what they're feeding their dog day to day. We sell those across beef and chicken and fish and pork, and you name it. And that gives us an entry point into the food bowl. So it's a very, very high, very addictive product. Dogs love it, and it's a way to say, if your dog is happy with their food, this is a way of changing up the flavoring. But now we're in the food bowl, and now we've demonstrated that your dog loves at least our topper or our food product. And so when you get to those different points of the dog is going from a puppy to an adult or an adult to a senior, or they've had a health change where it necessitates a food change, we're in the conversation. So that allows us to cross-sell and just be in the customer's mind constantly. Okay, great. And, sorry, Ygal. Go ahead. Just from a retail perspective, as we move into consumables, we are, I believe, if not the only brand, one of the only brands in a retail aisle, in the pet aisle, that's spanning all these categories: toys, and treats, and dental, and food. It gives us the opportunity to connect those products in the aisle and say to the customer, "Pick up two bags of these treats, and when you do, go over there and get yourself a free toy." And allows us to cross-sell or build awareness across those products in a way no one else can. Okay, great. I want to see if there's any questions in the audience. But I have more to keep going, but open it up. Okay, no worries. Keep going. Almost have to ask everyone on stage here about AI and generative AI in particular. It's a little less evident maybe for you guys, but is it something you guys think about? Is it playing a role? Are you integrating it at all? Oh, yeah. We've been thinking about it a long time. I suppose everyone says that, right? Yeah. Um, It's a net benefit for everybody. We've been on AI for 14 years, longer than we've been in business. We really have been thinking about it for quite a while and pushing it in. So some of the simpler or more obvious ways are, it powers a good amount of our customer support chat today. So there are humans monitoring what's going on, but largely the chats are happening without human interaction to it. So that obviously creates a lot of efficiency, and we learn quite a bit from it. Maybe some of the less obvious, if you look at our unified platform at shop.bark.co, every image on that site is AI-generated. So what that does for us is, it's no more taking dogs into a photo studio and trying to get them to cooperate, and trying to get them around the food bowl or around the product in the right way, but generating that via AI within seconds. It also allows us to do much more interesting things with those images. So you might see on that site, dogs skydiving with a parachute, or underwater, snorkeling or scuba, or doing a handstand on a food bowl. So it gives you a lot more flexibility. So, image generation, content creation, we're creating a podcast series that is actually based on my dog and an unfortunate incident he recently had, but it's a true crime series about how he killed a raccoon, and is he a loyal protector or a murderer? But all of this is AI-generated. We give it a prompt, and you've got full scripts written, voice-generated, and then you've got content that draws people into a platform, creates SEO benefit. So yes, there, there's a lot there. Okay. So you're putting dogs out of work, who claim to be loyal dogs. We're not firing them out of planes- Yeah. Just to be clear. Dogs don't want to work. At least- They don't, they don't want to. I don't blame them. All right, Let's just ship the capital allocation and M&A. I'll ask M&A from two angles. One is, does it make sense for you guys at all? Are there any pieces you kind of want to bring in, would like to bring in? And then, you know, there's kind of given where your stock is, what the valuation is, there's also kind of a loud chorus of, does Bark fit somewhere else, and you guys looking for potential acquirers? Maybe address from both angles. Yeah. Want me? I can take it. Okay. Yeah, I mean, we'll, we'll look at M&A as an avenue to grow the business. Clearly, with the share price where it's at, you know, we wouldn't do that with equity. So what we'd probably consider is a smaller add-on acquisition. There's nothing imminent at the moment. And then, on the other side of the coin, as you, as you say, you know, there's been a ton of consolidation in the pet space. We're an attractive brand. We've got a unique value proposition. As Matt mentioned, we're one of the few brands that transcends different categories. And so... But as we, as we- as we're sat here, you know, we're building this business not with the goal of being acquired. You know, our goal is to focus on driving our strategy, growing the top line in attractive segments, and improving and growing our profitability and cash generation. Okay. Last, just to end off on, maybe longer term, you guys have, you've spoken about expanding into certain areas, and services is one that you've mentioned. Can you just talk about longer term, bigger picture, you know, some of the areas where you think you can add on to core business around direct consumer and retail? Sure. On the services side, there's- It's sort of similar to the partnership discussion we had. If you really put yourself in the mindset of the customer, there are endless directions to go. I think the naturals that come to mind when people think of services for the dog are grooming or veterinary care, and those are well-tended to, and I'm not saying there can't be improvements, but there's a lot of focus there. Where we've done well in the past is going to the place where there isn't focus, and people aren't thinking of serving the dog in new or unique ways. To me, the relationship with the dog has changed. It's gone from the dog used to sleep in the barn outside, the dog came into the house, now the dog gets premium food and sleeps in the bed and has become a family member. And a lot of the world is still- We've all heard about the trends of the humanization of dog and how that's driven a lot, a lot of this past decade growth in the category, but it's driven it in food and veterinary care. Similar to, 100 years ago, there's such a parallel where, children, human children were the children, but there wasn't this big industry built up around them. There wasn't a Disney and a Mattel and a Fisher-Price, and hotels and restaurants didn't cater to them. So there are so many opportunities to think of the dog as a part of the family unit, and how do you serve that? If you just mirror to what happens with children, having a hotel like this accept you and build programming around you, and make spaces available for you and your dog to eat together, have experiences together. We have those insights. We can partner, we can create those experiences. I'd say it's a vast sea of opportunity. We just have to pick our spots very carefully, and we think about them a lot. We're looking for the right entry point. Great. All right, I think that's a good place to end. Let's just give one more shot for questions. All right. Thanks, guys. Appreciate the time. Thanks everyone for joining. Thank you.