Hi, welcome to the J.P. Morgan 51st Annual TMC Conference. My name is Phil Cusick. I follow the communications and media space here. I am pleased to welcome Nick Jeffery, CEO of Frontier Communications. Nick, thanks for joining us. Pleasure to be here. Thank you. You know, you joined Frontier just over two years ago. Just look back quickly and talk about how the strategic plan has evolved, and not since you joined. What's the same that you came into and what's really been changed? Yeah, thanks. Look, when I joined Frontier just over two years ago, the company was in restructuring. We had a very simple vision, to take a legacy telco and transform it into a growing digital infrastructure business. The investment theory behind that was really simple. We take legacy copper broadband customers, and we convert them to higher value, future-proof fiber customers. We did that against a purpose that we call Building Gigabit America, and a very straightforward strategy, build fiber, sell fiber, improve service, and become more efficient. On each of those, I think we've executed with purpose and well. Our build has accelerated year-over-year, 1.2 million homes passed last year. We're targeting 1.3 million this year. On sales, we delivered 87,000 fiber net adds last quarter, which was another record quarter after four record quarters before that. In fact, we sold more fiber broadband customers or more broadband customers than the entire U.S. cable industry did in the same quarter, which isn't bad for a company one-twentieth the size. On improving customer care, we've improved our Net Promoter Score or NPS score by 40 points in two years. On efficiency, we have, just in our last results, said we are accelerating our cost out targets to $500 million of gross cost out one year earlier than planned. If anything, one thing that's changed, to answer your question, is we've executed better than I thought we would. This business has great operational momentum. On the other hand, it's inarguable that the external market has changed. Higher inflation rates, higher interest rates, of course, that creates some tailwinds on the business. When I look at our IRR model over the two years and over the course of the predicted build, I think our team has pivoted really efficiently to adjust ARPU, penetration, and operational delivery to make sure that our anticipated IRRs are exactly the same now as they were two years ago. Let's dig into one of the things you said. NPS scores are up 40 points since you came in. One of the problems we would hear about Frontier before the bankruptcy was, "Yeah, they have fiber, but I would never go to them because it's a mess." Talk about where NPS has gone and what are the sort of legacy market customer stats look like. Yeah. There's no question that in the past, before restructuring, Frontier did not have a great reputation for customer service. One of the things that I do operationally with my executive committee every single week for the last two years is sit down and go through all of the reasons, all of the categories why any customer would call or contact Frontier. Then systematically put in place a program, inch by inch, mile by mile, tackling the small issues as well as the big issues to reduce or eliminate the reasons why customers would call us. In fact, that's flowed through into real, tangible operational results. Calls to call centers for Frontier are down 30% year-over-year and continue to decline at the same time as NPS has improved. We see that. You have more customers. We have more customers. Thank you. Have you seen my script? It can go the other way. It can go the other way, but thankfully it isn't. We have more customers calling us less. That means we're becoming a more operationally efficient business, and we're delivering a better customer experience, which means more customers want to buy a high capacity fiber services from us. Now is there a difference between legacy customers, new customers by geography? Of course, there is. Particularly in new geographies where we're rolling out fiber for the first time, customers love it. In fact, I was saying in a meeting earlier today, I regularly get customers calling me to say, "When is fiber coming to our street, our city, our location?" Whatever. I mean, actually asking me to build in their areas over someone else's. Fiber's become a product category that has somehow stretched itself away from cable. It's the newest, it's the best, people want it. In our legacy base of about 3.2 million customers, I think there's a bigger brand repair job that we needed to do. Even there, I'm very pleased with the progress we're making on NPS. What is that NPS move been? Well, on average, it's 40%, improvement. Yeah, you know, it breaks down broadly the same across our regions. Let me push a little harder. Is it positive in the legacy markets? Is NPS positive? It is positive, yeah. That's a big change. It's increasingly positive for fiber and improving in copper. Okay. That's fair. Let's talk about the revenue per user, 'cause you're providing a great product, and yet a number of fiber companies have been trying to figure out where the right price point is versus cable. Inflation's coming through. How do you think about pricing today? Where are you versus the sort of headline price 2 years ago, as well as the discounting and things like that that need to be done? Yeah. A couple of years ago, when the company was just coming out of restructuring, as you mentioned, our brand was not as healthy as it needed to be, but we knew we had a great product. Fiber really is the best means for delivering high-speed broadband to homes and to businesses. Of course, when your brand is in disrepair, your operational execution is not as strong as it needs to be. You can't charge a premium for that product. We started out with a very competitive price, supported with gift cards and other promotional tools in order to get that sales engine going, just as we were building more fiber. As time has progressed, and as the brand has repaired and NPS improved, we've been able to remove some of those promotional tools. We've stopped the use of gift cards and promotional pricing. At the same time, we've taken a very purposeful and thoughtful approach to developing our price ladder. What we call our price speed ladder. Where now we have half a gig, one gig, two gig, and five gig symmetrical services that stretch up our ARPU. We've also de-bundled the value-added services that we used to give away for free, charging $5, $10 for each, and so on. We have at least two axes on which ARPU can be developed. On value-added services, we found a very interesting price dynamic, where when we stopped bundling them and giving them away for free, we actually found our take rate doubled because, of course, we're ascribing value to something that otherwise had no value because it was free. Like what? Things like security services would be a really good example or an extra Eero if you have a large house and you want another router to give you good coverage. Things we used to give away for free, we now charge for. The other broader dynamic that's going on here is the market has moved from being a sort of discount price-led market to really an inflationary market, which I think creates the market space within a competitive market for us to price up, not just to cover the natural inflationary costs that all businesses have, but also to move up with the market as the market moves up. Why is that happening? It's partly because our cable competitors are having a lot of success bundling mobile with fixed. Why are they doing that? To protect their legacy cable base, they do that by discounting mobile very aggressively and pricing up on the base. That means the market moves up. As the market moves up, we can move up with it. That's a healthy dynamic for us. You're riding the price umbrella that they push up on broadband. Well, as I said, the market overall has moved to an inflationary market, and that lets us pass through inflationary price increases as well as moving people up our 2 price ladders. What do people typically take? Half a gig, 1 gig, 2 gigs? What's the average customer come in? We now have, about mid-50-ish% taking gig or above, so 1 gig, 2 gig, and 5 gig. Okay. What's your view on where that goes over time? You know, we see a lot of, you know, what do people use over time. What do they need discussion. Well, it's a great question. I think there are two ways to think about what do people need and what do they want. Those might be very different things. Certainly usage is going up. We see our average customer using about 1 terabyte a month, and at the top quartile, more than 2 terabytes a month. What people want is always the newest, the best, the greatest. We see lots of customers buying 5 gig and 2 gig and so on. That's in part because they need it and in part because they want the newest and best, and that's high-speed fiber. Where is that incoming revenue per user versus what the plan was when you sort of launched all of this a year or two ago? Yeah. As I said, for the first couple of years, I think we didn't do enough work on driving ARPU up because we had to get our sales engines fired up as we were firing up our build engines and our operational components in the company. That's now shifted. We're seeing our intake ARPU of about $65-$70, which is higher than our average ARPU, and therefore dragging the base up. I think we can see 3%-4% ARPU growth on a sustainable basis from our business in the future. Okay. That's across the entire base? That's across the entire base. Okay. I think Scott said recently that penetration is running... What was it? The quote at the high end of the 1-year target. Is that what it was? That's right. How should we think about those cohorts? You've been very specific on those. Yeah. The way to think about penetration is in 2 ways. Firstly, we describe in our quarterly results our, what we call our base footprint. This is the 3.2 million fiber passings that we had as acquired assets from AT&T and Verizon. That was before we built any fiber. There we're saying our terminal penetration should be 45% or higher over the course of our build. Actually, we're making really solid progress in driving penetration up there. We're seeing 100 to 200 basis points improvement year-over-year. Last quarter, our base penetration was at 43.5%, well on the way to 45%. Why should we believe we can get there? Well, partly because in our footprint, across the whole footprint, we have 1 or fewer competitors in 85% of that footprint. That means the terminal penetration, logically, should be about 45% or higher. We're heading towards that. For the cohorts that we've just been building in the last 2 years, which we also disclose every quarter, for the largest of those cohorts, which is the 2022 build, we said penetration would be at 15%-20% after 1 year. We've actually come in at 20%, at the high end of that. As I look at the cohorts, which we track every month, across all of our builds, what we're seeing is the range of penetration actually narrowing into a much more predictable and narrow band, which gives me great confidence in our ability to penetrate new markets, but also our ability to align all the other operational elements of the business from provisioning, sales, marketing and so on, to fire up in a very efficient way behind each new build to realize the penetration rates that we're already achieving. Not to disparage the amazing sales effort, but I would think that if you walk into a market with fiber and that has only seen cable so far, I would think 20% of people would be banging on your truck. I would- How about getting to that next- I would hope so, too. Those next levels of cohort, what's the evidence there? Well, I totally agree. People do want fiber, and I think they are genuinely fed up with cable. To give you a real-world example that I think brings this to life nicely, one of our new build cohorts just outside Dallas, which is a substantial build, we've got penetration rates north of 60% already, as people simply want our product. That's not a cable market. That's just you? No. That's a cable market. Yes. Is it a Southern Linc market? I'm not telling you. All right. I mean, joking aside, it does tell you what's possible. We've said terminal penetration of at least 45%, we do mean at least. Yeah. Okay. As you think about the sort of building more footprint, more coming online all the time, there's been a lot of discussion here about seasonality from cable companies as well as some of your larger peers. Should you be subject to seasonality in these sort of aggregate numbers, or do you think the wave of building sort of washes over that? No, we're definitely subject to seasonality, and particularly in Q2, which is the quarter where we see many customers, particularly in Florida, which is one of our larger footprints. We see that kind of snowbird effect. We saw that last year, and I think we should expect to see that this year as well. Of course, whilst that's a headwind in Q2, we also see it as a tailwind later in the year when they return. It kind of balances out across the year. Right. That makes sense. Talk to me about the copper markets where, you know, this is an asset that I wouldn't think you're putting a lot of money into, but hopefully, you know, taking care of those customers, in the meantime. How should we think about what you're doing there? Yeah. Copper customers are important to us. They're an important source of cash flow, and we want to protect and love them as much as we can. We are making very targeted investments in areas where we know copper networks might be disproportionately affected by weather incidents or so on, just to improve the customer experience there. We started communicating with these customers again, which is something the old Frontier had never done. We want to love those customers because ultimately they're a great source of existing and loyal customers that we can convert to fiber in the future. Yes, we want to maintain that customer base. Churn rates we're seeing is stable and low on a historic basis. My job is to convert them to fiber as quick as I can. How should we think about that fiber conversion? You have markets like California, where penetration of fiber is very high. Copper has got to be very low. Where are you in the process of getting those down and turning that stuff off? Well, as I said, they're an important source of new customers to us, but the vast majority of our new customers are new to Frontier. What about getting that copper network turned off? Where are you in the process? Yeah. copper decommissioning is something we've studied in a great deal of detail, and it's something I spent a lot of time doing in my previous life as the CEO of Vodafone UK. We decommissioned 13 entire networks over the space of five years. It's something I've some operational experience with. Here, our pilots show it's possible to do. It's an important source of savings. Actually, the majority of the savings come from fiberizing customers rather than decommissioning copper in the short term. That's because fiber is more reliable, has less outages, fiber customers call us less, fewer truck rolls, and so on. We can get a lot of the savings simply by fiberizing copper areas. I think full copper decommissioning, central office grooming, and all of that sort of stuff is important, but I think when we think about the next use of an incremental dollar, it's much better spent building fiber in the short run versus copper decommissioning. I think full copper decommissioning will be important, but I think in a 3 to 5-year time horizon. That's interesting. There's a gorgeous beach in Laguna, California, and right across the street is a big, ugly CO. Yeah. Every time I go by that, I'm like, "Man, I can't wait till they... Do you know, I have a little story about that- which is not in my notes. My head of IR is gonna kick me for this. Early on in my tenure, I was talking to a headhunter who was pitching me their services as we were looking to rebuild the team. He said, "Every day I drive past this central office you've got on Laguna Beach. It must be worth a ton." I said, "Well, that's interesting." I gave that to my property team, and we sold that. For quite- That's exciting. For quite a lot of money. It's already gone. All right. As it was no longer in use. All right. Well, I missed my window. All right. Help me think about the pace of building fiber. You talked about $1.3 million for this year. That's a little lower than you'd initially said. Take us back to the decision over the last few months to sort of slow down that $1.6 million to $1.3 million. How did that go? Yeah. Look, the first point to talk about here was our build last year. Last year, we said we would build 1 million fiber homes passed, and that was the first year, the first full year, that the company had ever built fiber. We completely smashed that target. We built 1.2 million, if you remember. We've actually accelerated that from 1.2 million to 1.3 million this year, and we are the only fiber builder I know of that is accelerating our build this year versus last year. Those two years combined mean the total number of fiber homes passed in the two-year period since we emerged is exactly what we said it would be. Okay. That's not the question. You said you were gonna go from 1.2 to 1.6. Mm-hmm. This is not I'm not saying it's the wrong thing to have done. I wanna understand what the, the process was in slowing that down. You know where my next question is gonna be, which is that CapEx just came up a little bit. Yeah. Help me understand the conversation internally about where should the money go, how fast should it go out the door, what are the opportunities that you're either capturing or missing? Just help me understand that. Yeah, no, I understand. I think the way to think about this or the way we think about this is we as a leadership team and a board are laser focused on driving high IRRs from the builds that we deliver on. That means it's not just about building as fast as we can. The entire rest of the company has to move at the same pace. Our ability to provide customers, to spark up sales engines, to manage customer care, all of those things have to work in unison to generate maximum returns from a specific build. Frankly, our build engine could go a little bit faster, but I'm not sure that would be the best thing to do for our business, because other parts of the company wouldn't be able to move at the same speed. Like what? Give you a great example, our ability to provision customers with a certain number of field technicians that we have. I mean, over the course of this year, we've done great work to improve the efficiency of those field technicians so that we can provision more. It's about getting everything to move in a way that delivers the optimum return on the capital we deploy, not just building as fast as we can. That was a major part of our consideration. When it comes onto CapEx, clearly we accelerated our builds beyond what we thought last year. Some of the CapEx from Q3 and Q4 last year naturally washes into this year as we count on a cash CapEx basis. Yeah. Now it's also been true that in the first quarter this year, we're able to opportunistically buy some inventory of scarce materials as others have pulled back their build. I think that is a pretty smart thing to do, frankly, because we will lower our unit costs and use that inventory over the balance of the year. That accounted for about half of our kind of higher than expected CapEx. The other half was from startup costs in new states. We're now building in 15 states, and some of those startup costs came through slightly higher than we'd anticipated. That inventory will be burnt down over the balance of the year, and my expectation is that Q3 and Q4 CapEx will come in materially lower than in the first half and that we'll hit our overall CapEx envelope for the year of about $3.2 billion, and that next year our capital envelope will be much lower than that. Much lower? Yes. On a similar build pace? On a similar build pace. Okay. You talk about, the cost of going into new states has been higher. Yeah. One thing we've heard from other players is that things like pole attachments are much more expensive, not necessarily labor and gear, but just the cost of doing business in a new state. Talk about the variability of those numbers. What are the biggest pieces? Yeah. A lot of it's to do with geography. Sorry, geology. Are you boring through rock, over lashing poles, the quality of duct work and so on, and that's really a major driver on the cost differences at, in startup, as you're learning how to do business in a, in a new geography. Okay. as you raise your CapEx guidance for the year, you also took up the OpEx savings number. Yep ... which I don't think got as much attention. Help me think about what, you know, the process of pulling first forward the $400 million to this year and then raising the exit rate to $500 million. What is happening within the business? Actually, we raised the exit, number to $500 million and a year earlier. Right. Well, when I joined the company, we had an aspiration to save $250 million of gross OpEx. Through a combination of, frankly, crowdsourcing ideas from our employee base, which has been incredibly successful, and being able to deploy automation, AI, and operational efficiency at a much greater pace than we thought was possible, we've been able to save far more than we thought. This is great because it lets me reinvest in automation within the business, new IT systems, new processes, better customer care, and that itself flows through to savings, a good example of which would be we've seen a 30% reduction in the number of calls from customers to our call centers, as I mentioned earlier. That's a real OpEx saving. As those things come through, it becomes self-feeding. Let's go more into that because $100 million of an exit run rate is a big difference. Yep. It can't just be sort of crowdsourced employee stuff or is it that simple? Well, from the first round of that crowdsourcing. Betting it's not that simple. ... it was about $50+ million just from that. Okay. Uh- When did that happen? Hmm? When did that? Oh, it's still happening now. When do those ideas start percolating in? about a year ago. Okay. Yeah. A lot of work on reducing inefficient truck rolls, which we've been very successful at doing, streamlining and focusing the business back onto what matters. We've got a very simple strategy: build fiber, sell fiber, improve care, reduce cost. If what you're doing in Frontier right now isn't one of those things, we're taking that opportunity to streamline and focus the business continually. It really is about focusing on the strategy, determined execution, crowdsourcing as many ideas as we can, and then that flows through into the OpEx savings that we're seeing. You know, you and I had this conversation a couple of years ago, but Frontier before the bankruptcy was a company that couldn't, my words, not yours, couldn't spend $1 to save $1, right? There wasn't capital to be spent to do OpEx savings. Where are you in the process of digging into the business and putting technology to work? I'm trying to think about what savings are beyond the $500 million you've talked about exiting this year and sort of moving forward. Well, I think we'll just focus on delivering the $500 million savings we've announced. You don't have to give me a number. I just wanna know what all the pieces are. Look, it is about improving customer care, having fewer customers calling us. That's a big cost driver in the business. It is about having more efficient field operations. It is about automating all the kind of manual analog processes that old Frontier had. Example there might be dealing with checks that customers send us. That used to be an entirely manual process. It's now fully automated, fully digital. And I could list 20 other things like that which culminate in the cost savings that we're seeing. This is real operational improvement that comes from a determined, granular, day-by-day, day in, day out effort right across the company to become more efficient, more focused, more streamlined, and it's exactly what we're delivering on. One of the things you've talked about is the, I would call it the potential EBITDA from a territory. Mm-hmm. Right. you know, Charter or Liberty, John Malone likes to talk about EBITDA per home pass. Tom Rutledge likes to talk about that. The potential there as you, one, grow into a market, but two, you're not adding all these customers all the time. Yeah. Help us think about what the acquisition cost is of a customer and how much that's dragging the EBITDA of the business. You have 1 million more net adds or 10,000 more net adds in a quarter, there's an OpEx component there that we don't really talk about in this business. There is. One of the points that you may have seen from our last quarterly results presentation was an attempt to show for a cohort how that happens. Yeah. For a particular build short term might be generating $ tens of millions of EBITDA, but as the sales and acquisition costs decline over time, so that unlocks EBITDA in the business. Really on a sort of multiplier basis, we see EBITDA grow very successfully. That's one of the reasons why we are now inflicting on EBITDA. We see sequential quarter-over-quarter EBITDA growth across the balance of the year, and this will be the first year where we deliver full year-over-year EBITDA growth as well, partly from this effect. Help me quantify this a little bit. Most of us think about the cost to pass a customer as CapEx to pass, CapEx to install. What is that OpEx? Is that more of a fixed dollars of sales and marketing in a market, or is there a very variable component there? Well, it's fixed in the short run. Yeah ...but variable in the long run, and that's exactly how you get the EBITDA release. Okay. You're not gonna give me anything else? No. No. Let's talk about beyond wave two. There's another set of homes that you've looked at going after. I don't think you have the capital to look at that today, but how should we think about what that potential is? As that potential base sits, are other people targeting in it that you feel like you need to move more quickly? Yeah. The first and most important point to make here is that our operational focus is absolutely on our committed build of 10 million. That's where the vast majority of the value unlock in Frontier is going to come from. That's our primary focus. We have said that there is perhaps in the remaining 5 million homes in our footprint, 1 million-2 million more that we think now at very good and attractive IRRs be built. Today, that's not our operational focus. We don't have the capital to do it, but we do have the build and sales and marketing engines to do it if we were to partner with capital at some point in the future to do that. Now, the balancing 2 million-3 million, we're studying very closely. I think the release of BEAD funds in the future may well change the economics there to make that attractive as well. For the short run, our focus is on our committed build. That's where the value is gonna come from. In the future, we'll look at how we unlock value from this remaining 5 million. As BEAD comes on over the next year, we've heard from cable companies today, we've heard from AT&T, Verizon, everybody's really focused on this money. Mm-hmm. Why should you receive this money instead of a cable company in their territory? What are you doing to make sure that that works? Just as other companies have, we've got an entire team set up to run that process, study it, geography by geography, make the appropriate bids and make our case. The company has had a good track record in the past at winning state funds and government funds to build incrementally, and I don't see why we shouldn't in the future. The fact we bring a truly future-proof product to market. There is no better way of connecting customers than fiber. Let's talk about the funding of the business a little bit. You have cash today. Mm-hmm. You've talked about needing more cash in the future. Just outline for us where you are today on the committed build and your current cash. We've got about liquidity of about $2.7 billion, and we're fully funded through the midpoint of 2024. There is a gap that we need to fill to meet our committed build target, and we're looking at all of the options on how we could close that funding gap in the short term. Very interested by the development of the asset-backed securities market here, and we have a very high quality asset base. In fact, I think we have probably the highest quality fiber asset base in North America, some of which are areas with builds that are 20 years plus old, with very stable penetration rates, very high quality customers that are very securitizable. That's something we're studying in a lot of detail. We have up to about two and a half billion dollars of securitizable capacity available to us. Of course, we're looking at all other options, including debt. In the short term, our goal is to fully fund the committed build. I hear from people who say, "Well, I wish they would fund this build." The negative carry is tremendous if you were to borrow today. How do you think about, you know, 1, wanting to have more cash in your pocket, and 2, what the stock price is doing today and maybe any kind of circular logic that's going on Yeah. Look, we'd love to have the build fully funded, and that's our goal. No question about that. How do I think what's going on with the share price? Well, look, on one hand, I am absolutely certain we are building a very high quality company here that delivers very efficiently, that meets its penetration targets, that is growing its ARPU, that is developing a very valuable customer base with significant EBITDA unlock potential in the future. I also think we've got a lot of the attributes of what makes for a great and growing digital infrastructure business. We've got a fantastic market structure with 85% of our footprint with one competitor or less. We've got operational leverage in the business, and we've got predictable and growing demand. I think those things ultimately will flow through into our stock price, and we'll gain a multiple that reflects those things. Of course, I don't control the market. All I can do is keep on executing with real determination, real focus, and a focus on delivering value for our customers. Is there any consideration of raising EBITDA or raising equity? We've said previously that that wasn't something we considered when our stock price was $35, so I'm not sure it's our most attractive option today. Okay. Okay. Let's talk about the SMB and enterprise business for a minute. Mm-hmm. What I specifically want to start with was wholesale- Mm-hmm. which has been a drag on the enterprise of the company for a while. Where are we in that wholesale? You've talked about fiber to the tower starting to come through. What's the process there? Yeah. Well, firstly, let me say I'm very pleased with the new leadership we put in, both in our business to business and wholesale operations to bring real operational depth, experience in other markets and great execution capability. I think that's what we're seeing flow through into both of those businesses. On wholesale, you're right. I think in the past, Frontier had perhaps priced itself out of the market, had not invested in relationships that are necessary in that part of the business. We've got a lot of repair and rebuild to do. I'm really pleased that we've now signed agreements with all the four major wireless operators in the U.S. Particularly as we've announced in the past, our relationship with AT&T, which is going very well, and we're winning significant flow share, sorry, from them. What have we done? Well, exactly the same thing that we've done in our consumer business, which is pare back the proposition, really understand what the market price is, what does good execution look like, which relationships do we need to build, how do we repair our image in the market, and then step by step, in a very thoughtful way, go out and rebuild that business. That's exactly what we're seeing now flow through into our take rate, our win rate, and now that's flowing through into new orders delivered and ultimately into revenue. I'm very confident that our wholesale business is beginning to inflect. On business, exactly the same thing. Really two segments to think about. SMB or small medium business, where the customer need is actually very similar to our consumer customer need. They want high speed fiber reliably delivered to their business. In the past, this just was not a focus for Frontier. In fact, I think I said to you before, when I started, there was only one person in the entire company focused on SMB business, including sales, marketing, and everything else. We've built a new team around that. We've relaunched our proposition, put new pricing into the market, new product into the market, and we've seen a great turnaround. We now see fiber revenue from SMB growing at 6% two quarters in a row. We're heading towards re-revenue growth there. I'm very pleased with the progress we've made in SMB. We're doing now exactly the same thing in enterprise. On enterprise, I'll draw one important thing to your attention, and that is we are not the market. Actually, we're a very small part of the market. When you and I in the past may have thought about enterprise customers, we tend to think about these big, you know, multinationals, large companies with complex product needs. That is not Frontier's enterprise base. Our enterprise base is what most of our competitors would call large SMB. We're coming off a small base, much simpler proposition, higher relevance of what we do to what they need, and a new team executing well. That's a good place to leave it. Thanks, Nick. Thank you. Nice to see you. Thanks, everybody.