Great! Well, thanks everybody for being here for the first session of the 2023 Citi Global Technology Conference. Steve Enders on the software team here. And with us for the first session of the day, we have the team from Instructure. So I wanna thank Steve, Dale, and Mitch for being here today. I guess maybe just to start off here, you know, I know that you were originally public a few years ago, and there's been some changes since then. So I guess, what's different with the company today versus the past iteration when you were public? Yeah. So, quite a bit has changed. First of all, I think overall, the market for learning management systems went through a pretty big, big change during the pandemic, right? So learning management systems became absolutely critical infrastructure across K-12, as well as higher education. And prior to the pandemic, it was, you know, LMSs were being used in higher ed, for sure, but in K-12, it was more of a nice-to-have. Now everybody's recognizing the need for a digital infrastructure and a strategy about how to digitize our classrooms in the teaching and learning process. You know, as a company, we were going through this process while we were taken private, and then while we came out public again, just over a year later. In that process for Instructure, we really looked at, okay, we've got a franchise product in Canvas learning management system. We went from the upstart in 2010 to the number one market share leader in higher ed, and now in K-12 as well, with about 36% of all U.S. institutions using Canvas in higher ed, and in K-12, about 1/3 of all school districts using Canvas. So, we decided at that time we had two businesses. We had the education business, we had the corporate business. We decided to divest of the corporate business and become 100% an education company. In that process, we were able to, you know, we were making a lot of investments in a product for corporate that wasn't growing, it wasn't big, it was a money loser for us. As well as we went and just kinda looked at how we could streamline operations and become much more focused. And so we went through our go-to-market, we streamlined our go-to-market in international markets. We focused on a few key markets where we knew we could be successful, and in the process, we were able to grow the business pretty substantially through the pandemic, but also go from, you know, kind of a money-losing, break-even sort of business to, today we're high 30s EBITDA margin. And so it's been quite a transformation for the business, but in the process, become such critical infrastructure for education across the U.S., as well as about 20% of our revenue coming from international. Okay. That's great to hear. And maybe we can just go to Dale quick, just on past quarter results, you know, big standouts, kinda where does the company sit today? Where are the financials at? Yeah, good growth, 14% growth on the top line. Our long-term targets have been, I think we're almost sitting on top of them. So our gross margins, we've talked about being in the upper 70s, we're there. Talked about Adjusted EBITDA margins in the upper 30s, we're there. Yeah, the business is just humming right along. We've got leverage baked into the business, and the results are coming through each quarter. Okay. That's good, that's great to hear. Maybe we can talk a little bit about where budgets are today and how your end customers are thinking about their investments across the, you know, the three end markets that you're, you know, really kinda focused on right now. So, yeah, it'd be great to hear kinda what the status is for kinda where your growth initiatives are. Yeah, I mean, I think we see, I mean, the three key markets that we actually play in: K-12, higher ed, and international. International continues to be the fastest grower for the business. Higher ed, you know, is where we started, certainly where we have the highest degree of penetration and the most revenue that's being generated. K-12 continues in the post-pandemic era to be, you know, an interesting place for us to both invest and work with those customers. In K-12, aside from Canvas, certainly assessments, right, is a key initiative for the business and certainly one of the key needs for the customers. In higher education, this whole domain of the non-traditional student, right? Students showing up to learn differently, to consume their educational experiences in ways that don't necessarily have to be the four-year degree, right? They're not entering through the front door and exiting four years later with that diploma. And certainly international is a ripe opportunity for us, with about 70% of that market being serviced today by free and open source software, Moodle in particular, being the primary market share leader. It looks a lot like the North American market looked like a decade ago, right? A lot of on-premise software, a lot of need for security, scalability, solutions that are more modern, by their very nature, and so we're excited by the opportunities there as well. Okay, I wanna, I wanna touch on that a little bit. I mean, as you, as you kinda put it, there's been a big share change over the past decade in, in, in the U.S. So I guess, how should, how should we be thinking about, like, what was it that led Instructure and Canvas to be able to kind of take over the, the market, and, and what are kind of the learnings to apply that to the international side? Yeah, I mean, we could sit here, you know, as the former Chief Product Officer of this business with a big smile and say, "We built a remarkable product," which is absolutely true. We did build a great product, but there were a few other things I think that happened at the time. One, you were dealing with a market share leader, you know, who had 80% of the market when we came in in, you know, 2010, 2011, who was still largely deployed or exclusively deployed on-premise. The sort of wave of the cloud was starting to happen. Our business was born natively in the cloud, you know, a multi-tenant, infinitely scalable solution, built with modern tools in a very simple way. And we- had a great product at the right time with the right sort of wave of technology underneath it, right? And there was a lot of unrest and sort of dissatisfaction in the marketplace with what had become, you know, bloated and sort of non-functional software. So having the ability to capitalize on that, and then I think you couple that with what we've built as a business that is highly focused on customers, responsive to their needs, not just in the building of product, but understanding the whole life cycle that they're engaged in, right? And so if you, you know, many of you have and will continue to do so, go talk to customers, we work with them differently than other companies do, and that's become a hallmark of some of the success that we've had. Okay. All right. That's, that's great to hear. I do want to ask around just kind of the trends in, in higher ed right now. You know, there's been declining trends in enrollment over the past decade, or so. How do you kind of view, you know, what that means for the business and the long-term strategy? I think you already kind of touched on it with the, with the non-traditional student. How does that kind of roll into to, to what's been, been going on and the, the, the strategy going forward? Yeah. You know, it's interesting. We had a small panel at our annual user event in Denver, about a month ago, where we collected four or five leaders from some of our customers. And it was interesting to hear them talk in the same way that, you know, every time Steve or Dale or I sit down with a university provost or a chancellor, a vice chancellor, right, or a president, the thing at the top of their mind is, yes, the well-known declines in enrollments, right? This is not a new phenomenon. It's something that, you know, has been well known for a long time and kind of projected. What's new is the energy around the awareness that there are no fewer learners or learner experiences happening, they're just consuming it differently. And so trying to figure out, you know, in concert with those customers, what the right response is to these new learners, right, and the new ways of learning, the new modes in which they want to engage, has led us and them down a path to say, you know, these non-traditional or largely online learners who are consuming things differently, how do we get to them, right? And so a lot of the universities have a number of experiments that have gone on over the last decade that they're now consolidating and saying: Listen, this audience needs to be reached, and we can reach it in a consistent way. Our professors now know how to teach online. Our content has been taken online, right? The pandemic provided an opportunity, really, to reach students in new ways. So this underlying technical infrastructure, which for the last decade or decade and a half, has served our on-premise or our campus students very well, we can take that now and apply it to this new audience, and we can expand our revenues, we can expand our remit, right, and achieve our mission with a broader set of students, and we can do so with familiar technology. So it represents a real opportunity for us and this business as well, to be the underlying technology that powers this transformation in the way that we reach students. Okay. So I guess as it, as it sits today, I mean, you have this, I think you put it, these universities have a bunch of experiments going on to figure out how to, how to go after that. Where does Instructure fit into that strategy, and how do you see that playing out? Like, what are going to be the key things that kind of determines who's going to end up capturing share here longer term? Yeah. I mean, I think there are a couple of things to think about. Let's talk about the first piece of that question, which is where do we fit, right? Yeah. So, you know, our product suite, the portfolio, is comprised of a number of things, but relevant to this particular is Canvas, the learning management system. We acquired a company that provides one of the world's largest providers of digital badges and credentials and pathways. So if you think about learning experiences no longer just being defined by that end state of a diploma, but incrementally along the way, having the ability to issue badges and certificates and stack those things along a learning path that result in a body of learning that you now have skills around, how do you evidence that, right? So credentials are one way and an important way to do that. How do you make multimedia useful in a world, especially one that is asynchronous, one that, doesn't necessarily have you and I face-to-face inside a classroom every day? So we have a product called Studio. Mm-hmm. You know, how do you manage the user experience that people have across not only our products, but, you know, partners' products? So we acquired a company, we now call that product Impact, so user experience management across the platform. Am I missing something? Catalog. Catalog. And Catalog is a product that we built that's been in our arsenal for a number of years now. Those students don't necessarily show up in the same way that the traditional students do. They don't apply, they don't hit the registrar's office, they're not necessarily seeking financial aid, all of the things that deal with that traditional institutional experience. So Catalog serves as the front end, to advertise those programs, to collect the actual learning experiences in a way that the students can see what's available to them, to register, to actually deal with the financial transaction. So when you wrap that technology together and you present that to the university, and you say: "Now, you bring your people, your professors who can teach, you bring your content," you begin to see how the market shifts a little bit away from outsourcing it to third parties, right? Or away from these individual experiments into something that's scalable and deliverable on a pretty consistent, a pretty consistent path. So that's the offering that we have put together for the non-traditional students. And we've seen, we've seen a lot of our customers that are really now starting to consolidate those experiences. So historically, the way that a university has gone after that non-traditional student is they've stood up, you know, maybe it's, you know, university online, right? And it was, it was really run separately from the on-campus experience. And what they're recognizing is, since the pandemic, when students are coming back, even the ones that are coming back on campus, they want a hybrid experience, right? They want some of their classes online, they want some of them in person. And to have separate infrastructures, have separate, you know, parts of the university that are responsible for it is a non sequitur for them. So they're really starting to consolidate that infrastructure so that there's a common experience, regardless of how you're going to consume education from the university. And that's been a big driver of some of the, you know, big changes that they've been making in their infrastructure. We just won a large customer about last quarter who had two different LMSs, right? Where they're online versus their in-person experience, and the impetus to make that change was this phenomenon that's happening now, right? Since the pandemic, and we're starting to settle down. Okay. So I guess, how should we be thinking about consolidation of this, this part of the market going forward? And like, where does the budget come from to help, you know, come from this? Is it, is it coming from, you know, other vendors, and it's about kind of tackling the share? Like, how do you just kind of view the budget environment for this non-traditional area? Yeah, so there's two things that, that are important about this part of the business for a university president or a provost or chancellor. First of all, a lot of them have been doing this in some form or fashion, right? It's really about how do we consolidate budgets? How do we consolidate vendors, right? It's the traditional, you know, we're going to try to get a few strategic vendors rather than a bunch of different, different vendors. The other piece is that this is absolutely a strategic imperative for a president of a university, right? When I have conversations with them, they are all absolutely acutely aware, not all, right? The tier ones, the Ivies aren't struggling with enrollments. You know, a lot of the R1s aren't, but a lot of them are really struggling with how, "What's my, where's my revenue coming from in the future?" And so, this actually becomes a revenue enabler for them. Mm-hmm. which makes it a lot easier to go get budget for something like this, if they can point to ability to kind of address their budget shortfalls. Okay. Okay. I just want to make sure if any questions in the audience, you know, happy to... Yeah, Tom. I have a question. Tom, you want to hold on a second, we have a mic coming. Sorry, sorry. I just wanted to build on that question on enrollment, because obviously, we're deep in the heart of it now. I know there will be some companies where the amount, number of students turning up in September is a big deal. Is that the case for you guys, or are you a late cycle indicator of enrollment? And the only reason I ask is spring enrollment is desperately close to flat for the first time in more than a decade. So, you know, maybe slightly contradicting Steve, you know, is there any scope, do you think, for enrollment to grow? You know, it's the eternal debate, right? Higher education tends to be countercyclical when we go into recession, right? Enrollments tend to increase, people go back to school. Whether or not that's going to result in growth in enrollments or it's going to kind of flatten out, I mean, there's a lot of evidence that there's a demographic reason why enrollments are going to decline in the U.S. Now, around the world, that's not necessarily the same trend. So, I think we're probably going to be flatlined, you know, ish, right? Maybe down a little bit, up a little bit, but I think that's going to be the trend for a while now. Perfect. And the second question I had: I remember catching up with a vice chancellor in the U.K., so this is obviously, I suppose, an international one. But one of the challenges he said when he was talking about LMS, because I was actually at the time sort of saying to him, "You guys should speak to Canvas, because it's much better than what you do." And he said one of the challenges is, you know, they had built an LMS sort of open source, and it was plugged into the system that managed sort of classroom allocations and a bunch of other things. It was just difficult to unpick. I'm just wondering what proportion of the market is like that, that's just difficult for you to access because it, you know, everything's too sort of higgledy-piggledy in terms of how it's been constructed. Yeah. I mean, it's, that's not an unfamiliar refrain, right? And you look across whether it's, you know, a large university in the U.K. or the tier one, you know, large research universities in the U.S., some of those statements have all, at one point in time or another, have all been made. The reality is that, this platform that we've produced, in particular, was built from, the outset to be open, with well-documented public APIs, easily integratable, and we've now got, you know, more than 7,000, you know, experiences in, deeply integrating into people's operational environments, right? So the good news is, all that one of those universities has to do is pick their heads up and look right or look left, right, and find a university that looks like them, who's actually gone through this process and has probably used many of the same or similar systems, and understand that the chore is doable. But of course, it looks daunting from the outset, but I think that's part of the, it's part and parcel of the sales strategies, right? As it relates to helping people understand that implementation is not difficult, and there are lots of examples of how this has been done historically. That's a long-winded answer to say it's an objection, but not one that we haven't overcome regularly over the course of the last 15 years. And we have a partner ecosystem of over 800 tools that have integrated into our platform. And so, it is true, you know, with the open source, you can create whatever you want, right? You can build on top of it, you can integrate whatever you want into the open source, but then you maintain that integration, right? What we've done with Canvas is say, "Okay, let us and the other software vendors worry about that integration and make that integration through standards and build it for you, so you don't have to sustain it." So that it ends up being a much lower total cost of ownership for them over time is part of the selling value proposition there. Okay, great, great question. I do want to switch gears a little bit and maybe focus on the K-12 space, a little bit here. I think there's been a lot of focus, at least in the U.S., on, on the funding environment and, and K-12 in particular, you know, digitizing their processes. So I guess where do things stand today with, you know, with ESSER funding? And how do you view the impact of this as it gets to end of life, next year? Yeah. So there has been a ton of stimulus dollars going into the system since the pandemic hit. It started with CARES Act funding, and it continued. And we viewed it, I think, as an opportunity to really accelerate the digital transformation of education in the U.S. And in general, that's been awesome. So the first round of stimulus funding went towards infrastructure. So we went from about 70%-ish of schools in the U.S. were one-to-one, which means there's one laptop for every student in that school, to over 90% now, are one-to-one. And then the wireless infrastructure to go along with it, a lot of it went into that infrastructure build-out in 2020, 2021. And so now we're at the point where we've got that infrastructure in place, let's build the services on top of it. And the core service that you start with is the learning management system. It is the nervous system, if you will, for the interactions that teachers and students and administrators and parents have with each other. And so we've seen, you know, during the last three years, we went from, you know, I think the market share would show we were a little 10 or 11% to almost 33% of students now are using Canvas, and we're number one share within K-12. And so the funding, there's still a lot out there. About a half of all the ESSER funds that were allocated are still left to be spent. They have to be spent by the end of the federal fiscal year 2024, so next September, end of September. What we're seeing is, you know, what we're seeing is that since those funds are running out, the districts are being fairly cautious about how they spend those dollars, but it is creating a good kind of tailwind for us in that, the one-time costs that happen when you decide to deploy a learning management system, right? Like the implementation, the training, those types of things, the ESSER funds take care of those pieces of the business. And so we work very closely with the districts when they're making their decision to ensure that there's ongoing state appropriations for the learning management system, right? Because that's going to be an ongoing expense. Then we can tap into those ESSER funds to help get the deployment going and get it, get it up and running as quick as possible. So it's been a good kind of, you know, macro backdrop for us as we're working with districts that are really trying to, you know, figure out what their long-term digital strategies are. Okay. I do want to switch gears a little bit here and talk more on the product side, and, you know, especially at your conference, I think there's a lot of focus on AI from a month or two ago. So I guess, how are you viewing the AI opportunity today? And, like, what are the key opportunities that are going to change in the education space because of AI and what Instructure is doing? Yeah. I mean, it's an exciting time to be in tech, right? And certainly, there's a lot of talk about the, the opportunities, or potential disruption that generative AI represents for education. And I think our, our approach is excited, and also careful, right? We've got a special sort of duty of trust and care with students, and the data that gets produced and the interactions with them. So the first thing is, I think it's very important for us to, to be clear, right? That doing this in concert with customers, doing it carefully, doing it with, you know, an ethical approach to, to the use of these technologies is critically important. At the same time, I think we've launched a number of initiatives to, to dive into and help suss out what's going to be, really interesting for teachers and students, in particular, as these technologies become more common. So as you mentioned, at our annual user conference, we had a sort of look under the hood at some of the things that we're doing. The first kind of principle as it relates to some of the investments we're making has to do with one of those two audiences, right? The teachers. There is a whole host of efficiencies we think that these technologies are going to bring to the discipline or the craft of teaching, where we can offload some of the rote processing that they have to do, right, to the machines. And also kind of amplify the impact, right? This is not necessarily about disintermediating teachers from students and sort of replacing, but helping to amplify the impact that those teachers or professors have with the students, whether they're inside or outside the classroom. You know, things like automatic right, natural language creation of really elegant content, where before, as a teacher, you're a creator- Mm-hmm. right? But, you know, how many of our educators know how to, you know, bracket HTML and put together pages and make them sophisticated and elegant? Not many, right? But if you can bring the power of generative AI, who can actually do that work for you through natural language instructions, it's pretty incredible, and we demonstrated a lot of those content creation capabilities. You know, content updating, you know, how do I build my syllabi? What kind of rubric should I be building? What kind of guardrails can I put around that process so that I know what I'm building is educationally sound? A lot of those kinds of things. Automatic scoring of quizzes might be a little bit controversial, but if the large language model has context for the course that I'm teaching and can actually score a short essay answer question, which before would have required a massive amount of teacher input with Boolean strings and fuzzy logic and lots of terms, like, the amount of time that gets saved in that process is pretty incredible. So we showed a bunch of those kinds of things. You know, we also announced a partnership with Khan Academy, a well-known name in the education space, right, who has the objective of providing a free education for everyone, a remarkable content library. Sal and his team were invited into the tent early with OpenAI. They've got many, many months of development under their belts to help in two ways, and this is their Khanmigo effort that we're going to integrate deeply into Canvas. One, to focus on the teachers. When you think about it in the simplest way, how do I provide a virtual teaching assistant using these technologies to every teacher that that wants one, right? A pretty remarkable opportunity, and otherwise, something that is very costly, very expensive, and very intensive in humans, right? Yeah. Alternatively, is how do you provide a virtual tutor to every student?... again, a very costly proposition in the physical world. But if I now have the ability to use these models to walk students through becoming effective writers, not effective prompt writers that says, "Write me a term paper," right? But effective writers who are helped through the process, right, by this technology, or the math tutor that can help you solve these equations, right? Those are the kinds of investments that we'll continue to make, some of which will show up as, you know, features in products that justify price increases, right? And some of them will show up as new product that will be sellable by, you know, by us. Okay. I do wanna ask a bit more on the monetization angle, because I think that does feel like that's very top of mind for everyone in the, in the software space right now. So I think you mentioned a little bit about price increases, but what do you view as, like, the key levers that could drive this? And, you know, as we think about education, I think it's usually a little bit more budget sensitive. So where does the budget come from to be able to utilize those features, you know, in the future? Yeah, I mean, it's very early stages, right? The opportunity, there's lots of thinking going on, not necessarily a lot of decisions. But let's just take those two examples of, you know, a virtual TA and a virtual tutor. Mm-hmm. You look across the budgets of a typical K-12 or higher ed institution, and you ask yourself: how much money is actually being spent in doing those kinds of things in a disconnected, not particularly scalable way? And are those budgets sufficient then to cover, you know, a new product offering that might be able to bring this to a broader population of people in a much more scaled way, and perhaps even more impactfully than it had been done before? Our kind of early research would suggest that there's, you know, there are ample opportunities, just those two alone, in being able to capture, you know, places in the budget where those monies are being spent elsewhere to do these kinds of things. Now, you know, we still have to deal with the cost of AI and the transactional cost of tokens and all of the things, models that we constantly are working on building, right, Dale? Yes. And to determine what, you know, a product offering and a right price point and all of those things are as we head down the path. But, you know, I don't expect that there's, you know, that we don't have to go invent net new budget, right, for these things, in the near term. But in the long term, as the landscape reshapes, right, and the allocations become apparent because these things are having a directed impact on the outcomes for students, like, the dollars will flow. Yeah. Yeah. Yeah. Dale, I did wanna ask you about the level of investment going forward and how you're thinking about, you know, how much R&D dollars need to be put out there. How does the model kind of transform or shift a bit with everything that's going on in the AI side? We have a really good process, that's built into the development of our annual operating plan. It usually starts with Mitch and his team in the spring. From a strategy perspective, we look at our products later on, and then it develops into an annual operating plan, where we make sure that we're making the investments where we see the need for it. Then we pivot from that, right? AI is one of those classic points where we not just look to build, but to partnership and buy and have the resources to do that. Now, the great thing about being a Rule of 50 company is that we have flexibility to do this. We're generating a ton of cash, and so when we think about these opportunities, we can attack it in a number of different ways, whether it is a buy or a build or a partnership. And so, we feel really good about how we're set up to address opportunities and the need to address them through allocating investment. Okay. I guess with that in mind, I mean, you have been very acquisitive, had a lot of good product integrations and acquisitions out there. I guess, how do you view the appetite today for, you know, further M&A, and how does, you know, some of the things like LearnPlatform and your marketplace kind of further impact how you think about M&A strategically and how things fit in? Mitch runs it. I make sure he's got the cash to do what he needs, and then he- Yeah ... deploys it. There's a lot in that question. I mean, the last, you know, couple of years have been, I don't want to say difficult, but the valuation expectations have been extraordinary, right? Mm-hmm. And I think we're starting to see that those expectations are mediating, so that we have an opportunity to execute on what has been a pretty deliberate strategy over the course of the last three years, right? I mean, we've had a lot of these conversations about the financial, the strategic alignment financially with the business. We run a very tight ship, as Dale said, a Rule of 50 company. Mm-hmm. There aren't a lot of companies, right, that sort of fit the metric profile of the business that we've built, so we have to be pretty deliberate financially about finding things that are gonna be appropriate and accretive. And we've done a good job of that so far. But more importantly, than that, right, is to make sure that they align strategically. And I think, you know, if I were to give you, you know, just the synopsis of where our heads are relative to kind of the M&A activity that we engage in, we think that, you know, in K-12, the assessment space is a critical area for us to continue to explore, right? I think it's part and parcel of that learning life cycle. It's critical in K-12. It's the nearest adjacency to what happens around that center of gravity of teaching and learning in the LMS. So, we, we're, you know, very interested in that space. In higher education, we've spent a lot of time already talking about the notion of this online or non-traditional student, the omni-channel learning experiences. We think there's work to do there on the M&A front. Additionally, you know, as this world changes, this landscape changes, student success is critically important, right? How will we make sure that students who enter, whatever their learning experience is, are actually successful at achieving those objectives, whether it's a short-form course or a programme or an actual diploma? And there's a big opportunity to wrap up a series of capabilities that support the students and the scaffolds they need to be successful through that process. And then to your point about marketplaces and LearnPlatform. Clearly, we believe that Instructure and the learning platform that we put together is emerging as an industry platform for education, not just simply a collection of products, right? And so, LearnPlatform represents one acquisition, you know, as a function of that strategy, which is, how do we make sure that what we build is attractive, not only from a product perspective to individual institutions, but also becomes the mechanism by which institutions manage their technology environments, especially their instructional ones, and connects them well with industry, with the ISVs, with the edtech providers that are out there, the many thousands of companies. So, LearnPlatform, in particular, is a great expression of that, and in one sense, it helps the individual institutions manage their deployed landscape of technology. What's being used? Who's using it? How impactful is it? How do I get insight then into what else is out there, what I might consolidate around, what might be useful, what might provide a solution to the problem that I'm having? So, connecting both sides of those of the market together via LearnPlatform, providing the customers over here, the institutions evidence of the impact of the technology solution that they can go investigate over here, and then building the channels and the bridges between them, we think long-term materializes as a real opportunity for a marketplace between providers and consumers, and gives lots more transparency, lots more insight, and lots more validity to the actual deployment of those technologies. Okay. Well, we only have about five minutes left. I want to make sure we hit the questions in the room, if there are any. Otherwise, I have a ton left to try to get through here. Yeah, Tom? I'm sorry. I'm interested in badging, 'cause it's and credentialing, 'cause it's suddenly become a big thing. Pearson has Credly. Udemy have announced something big in badging. I'm interested in whether that means you need a sort of direct-to-consumer brand to succeed as in, in sort of taking advantage of the opportunity in credentialing, or is that something you can provide on a sort of white label basis to universities and just create a sort of common, common currency, if that's the right way of putting it? Yeah. I mean, it's an interesting question about, you know, what is the proper positioning, right? Whether it's brand or whether it's, you know, a new line of business. I'll give you, sort of our perspective today, and that is that a lot of this is happening both with the traditional universities and with non-traditional providers, that we need to help manage the transitions between. You know, it's funny, when we sit and we talk to, whether it's analysts, whether it's investors, whether it's customers, we're in a place now where we've got people who grew up using Canvas, who used it in elementary school, who used it in high school, who used it in their, you know, graduate studies, and are now into the corporate space, and they talk to us a lot about the transitions. You know, when we leave high school, and we enter college, and the data doesn't follow us, right? It's all Canvas, but the data doesn't follow us. And it's not a technical problem from our perspective, right? It's a problem with the friction between institutions and the lack of communication. So our ability to actually connect with those learners from the point where they enter a system all the way through sort of their life cycle of formal learning and into informal learning, is going to continue to be critically important. I don't know yet how that manifests, right? As do you need a publicly facing brand, but what I do know is that the badging, the credentialing, the verification of those by authoritative providers, whether they're the universities or their school systems, or their sort of corporate providers, is going to continue to be increasingly important. We are setting out the infrastructure that supports you know that relationship with that student or with that learner over a period of time that transitions or spans the transitions that they have in their learning experiences. So think about it- You know, I think, Tom, you know, the value of those credentials is not in the issuer as far as the technical issuer, right? Just like my diploma, right? It doesn't matter who created that diploma, it was the institution that I got it from, right? And so, you know, I can get stickers from whomever, right? But if I've got a badge that's from Berkeley Data Science program, that means something, right? It doesn't mean. It doesn't have to come from Instructure, Credly, or whomever, right? So, that really is really the, you know, our strategy is to become that. We're the rails, right, that they use- Yeah, Instructure ... to provide that, and their brand is where the value accrues in those badging. And the final question I've got, sorry, Steve. ... is on I feel, I feel personally, quite strongly, and Citi does as well as it happens, that, professional qualifications will be brought into the university life cycle, which is exactly what you're saying. And the question is, I suppose it's linked, is, you know, does that just mean lots more partnerships like the one with Khan Academy, so that you can, you can be a sort of an aggregator, or once again, does it require you to have your own sort of consumer-facing front end to- Yeah. So, no, it does not require us to have our own kind of consumer-facing front end, right? Because, again, we're the underlying infrastructure for that. We're the Intel Inside, right? We're the ones that make it happen. And then, you know, and there's a lot of... They're all battling for the same student, right? And we're going to be selling the picks and the axes to the miners while they go try to win those students. And so in our model, we win either way, right? Whoever ends up winning that student. But it is an interesting comment, you know, are we going to do more things like the Khan Academy, right? So back to Mitch's talk, you know, we've got this network. We started out by focusing on the network that was the administrator, the teacher, and the learner, right? And making sure that all sides of that network were well integrated and working together. We added the providers, the ISVs that want to join that network, and we're continuing to build out that with the LearnPlatform strategy and the acquisition that we did. But there's also a content element to this too, right? And we have technology that allows content providers to come onto the network as well. And so you'll see us continue to make more announcements and more integrations and more partnerships with the Khan Academies of the world, right? That have created this incredible content that everybody wants to consume on our platform. And so just think about us connecting all of those pieces of the network together over time, and the network effects become pretty powerful over time, as each of those become much more robust. That's great. Great question. Jesse, do you have anything? Yeah. So I wanted to dive a little bit deeper just on AI monetization potential. We hear a lot of anecdotes of, or rather, investor skepticism of a lot of companies not actually being, like, being able to do that. And obviously, given everything coming out of InstructureCon, if you think about the mix of price increases versus net new products, which could actually be a bigger revenue driver medium term? And then building on that, we've seen examples in other areas where AI spend is cannibalistic, and I think you touched on this, but is that the case here, or do you think you'll actually be able to grow education budgets going forward? Yeah, you know, so I think it's gonna be the near-term opportunity is absolutely building this as a feature into Canvas that gives, you know, justifies that price increase, right? Or allows us to get a little better price increase than we did. Because of things like the content creator stuff that we showed at InstructureCon, that makes it a lot easier just to use the system. I think in the medium term, it's new opportunities, medium and long term. Because, you know, for us, it's about, there's certain parts of the education ecosystem that we would never touch before because they're very people-intensive, right? And we're a software company. Take, for example, tutoring. That historically has been very people-centric. There's companies out there that help connect tutors. They train tutors, they vet tutors for school districts or for universities, and they connect the university with those tutors. It was just a business that just looked very different from the software business that we run. But now, with the technology, you can do it in software, right? And so for us, it opens up new profit pools for us, that we historically would never go after. So I believe long term for us, it is an enabler for us to go after more of the share of wallet within a university, in a way that we know how to go after those budgets. So I think it is a net positive. And the question about whether or not overall, you know, there's a lot of money being spent in the education system. So, I'm not sure if the overall pie is gonna get a lot, lot bigger, but I do think for sure the mix is gonna change quite a bit over the medium and long term. Okay, that's great. I think we're running up against time here, but I want to thank everyone in the room for being here today, and want to thank Instructure for this great session this morning. This is- Thank you ... this is super helpful. Thanks for having us, Steve.