All right. Well, good afternoon, and welcome to the Needham Technology and Media Conference. My name is Josh Reilly, and I'm an analyst on the enterprise software team. This afternoon, we're excited to have Jamf, with CEO John Strosahl and CFO Ian Goodkind. All right, well, let's get started here. John and Ian, thanks for attending in person this year, and I just kinda wanted to touch off the base here. You had a offering earlier this week, and wanted to get your thoughts around the deal, and any comments that you wanna make. Yeah, I'll take that one. So yeah, there was an offering earlier this week from one of our shareholders. It was to the tune of 9-10 million shares. It was our primary shareholder, Vista. I can't comment on what they're thinking, but what we know and what we like is, we saw that this is gonna help with our float. Right now, we have very little float out in the market. 350,000-400,000 shares trade daily on a 120 million. So most of our shareholders just wanna hold our stock, and we need to get a little bit more float out there. This also came with coverage, so we have additional coverage there, too. But we were excited about it, because we were able to participate in it, and we decided. We We looked at the value of our stock today. We just had an Investor Day. We released a three-year plan, and if you do the math, our stock should be worth quite a bit more here in the next three years. So we decided to put our money where our mouth is. We had some excess cash. It doesn't change our trajectory of our capital allocation. We want to keep a strong balance sheet, meet those obligations that we have out there, and we still have plenty of opportunities in the pipeline, you know, to invest back in our business or into M&A, but we saw this as a great opportunity. All right, great. Just a quick follow-up to that. Oh, sure. What's the ownership percentage primarily after the...? Yeah, they're somewhere in the, like, low-to-mid 30s still. So I mean, at the same time, they, you know, they know that this is a great opportunity to get a little bit of increased flow and drive up value over time. So we're all really excited about this. Awesome. All right, well, let's, let's move on to the results you announced last week. AR, ARR growth was fourteen point four percent year-over-year, while at the Analyst Day in March, you discussed a 10% AR- ARR growth rate for 2024. What were some of the key considerations of outperformance in the quarter? Yeah, I'll take the numbers type questions. That's always a good thing for me, right? Yeah, so during the quarter, we saw actually outside the U.S. perform relatively strong to what we had expected. We saw EMEA and APAC be a little bit stronger. We saw education be a little bit stronger than we had expected, and then we saw retail and government be a little bit more stronger than we expected. And to just level set, too, our top two industries are tech and K-12. That represents roughly 45% of our ARR. Professional services, financial services, and wholesale and retail represent about 25%, and that secondary tier has really we've seen a lot of strength there. In today's economy, tech has been impacted, you know, from the overall macro customer lack of customer spending, and K-12 has been impacted by the COVID overhang, but these other industries have been strong. That's really what some of the overperformance on the ARR side with revenue was. It was some of the one-time revenues. We saw on-premise revenue be stronger than we expected, which is kind of more one-time in nature. What was interesting on that, we saw one customer within that I'll call cohort that showed us. They actually bought in more devices than they had running, meaning they bought ahead a little bit, which we haven't seen that yet. So that's a little bit of a green shoot, and then we were able to perform more services in the quarter than we expected, customers asked for that. Got it. All right, so in terms of commentary from the call, it seems, you know, verticals outside K-12 education and tech seem to be performing a bit better than expectations. How much have you pivoted the sales force to these other verticals, and how do you view the penetration of some of these, like, financial services, professional services, retail, and maybe just highlights what, you know, you just did there a little bit, but, you know, which of those are kinda outperforming? I guess from the sales perspective, we haven't really bifurcated the sales teams down to verticals, although there is a focus on the education versus the commercial. But the commercial, we kinda lump all together because the sales motion is very, very similar. Maybe with a little bit of an exception for healthcare, that's been a growing industry for us as well. You know, when we think about professional services, financial services, wholesale, retail, you know, I think they've actually done better than expected for some different reasons. If you think about professional services, a lot of their new hiring comes right out of university, and a lot of their new consultants, and what's the only thing they've ever touched is a Mac. So when they come into the professional services, they want to use the same device or device they're familiar with. Financial services, we've heard a lot from our customers about security, and we had a bank that converted entirely to Apple because of security reasons. And so that's helped us, especially as we've added security to our portfolio and to our platform. And then the wholesale retail, really fascinating, and one of the things I get most excited about is really that desk-less workflow. I mean, when's the last time you walked into a retail store and saw an old-school cash register? You know, they're all new, they're iPads, they're tablets, and all of those tablets have to be managed and secured within their environment, and the shareable device as well. So a manager from the first shift will then log off of that iPad, and then a person from this next shift will come in and log on to that iPad, and it'll have all of the things on that iPad that are specific to that person working the second shift, different from the person working the first shift. So all of those things make it very, very useful in that space as well. So we've seen some tremendous growth in all three of those markets. Others as well, but those are ones that we're particularly excited about. Awesome. A significant driver of the operating model in 2024 is sales and marketing decreasing by about 550 basis points as a% of revenue. Can we maybe just review, you know, what that entails and the progress year to date now that you've made against that goal? Yeah, I'll take that. So, looking at sales and marketing, just let's level set with Q4 versus Q1. We had about a 200 basis points improvement in sales and marketing. We talked about in this last earnings, you know, 5 steps that we've really outlined for this year, on some of the things we're doing within sales and marketing. The first step was the action we took in January with the reduction in workforce. That was focused more on sales and marketing, and it was focused on productivity. And by the way, we measured our productivity in Q1 of this year versus last year, and it's up double digits. So that seems to be going according to plan. Then we looked at our sales incentives, and we wanted just to... You're always tweaking your sales incentives, and we made a little bit further changes within this year, where we've tweaked it so they are more focused on cross-sell and also on price capture. So those are really good opportunities within our plan. We've done some in Q1. We're doing a few more here in Q2. We're seeing results. Our pipeline of new logos on the commercial side, 45% of that pipeline is security. So we're seeing some good results there. Three, we're leaning more on the channel. We have a partner portal coming into play later this year to help us continue that volume journey. We continue to educate customers on our Trusted Access story, and that's the management security going hand in hand, and that's resonating well with customers. And then, lastly, we're focusing on those geos that are growing a little bit faster than here. And we saw some really good success in the APAC region this quarter. Got it. Touching more on that partner program that you're revising here, maybe can you discuss, you know, how this program works in terms of how Apple sells through, channel partners domestically and in international markets on the commercial side of the business, and maybe how you guys kind of fit into that ecosystem of the sales process? Sure, absolutely. Well, we, you know, we've got a long-standing relationship with Apple over 20 years. And you know, I naively came into the company 8 years ago, and I said, "Okay, who owns the Apple relationship?" And I got a lot of funny looks, and it's because every department pretty much has some touch point into Apple, whether it's your go-to-market team, it's your product team, or it's your development team. But on the go-to-market side, if I look at that specifically, Apple sells to their commercial customers through their channel. And but they have sales team that work with the channel and then, well, obviously, work with customers, and we're in lockstep with their sales organization. We've actually overlaid territories, so we have people on our side that have familiar reps on the Apple side, and they call on common customers, and because there's a continuity there. On the education side, Apple does sell direct. They actually resell our products. So we are on the Apple price list, and so we'll work with the Apple reps in supporting them in those sales to our education customers. As far as the... And outside the US, we have just as strong, if not deeper, relationships outside the US than inside the US. I've spoken, you know, recently to the person who heads up all of enterprise. He's actually based in London, recently, and manages Europe from London. With the head of Apple Japan, I regularly have dinner with him when I go over to visit that market as well, and have some common goals, and we talk about strategies of getting Mac into more enterprise and into more institutions over in Japan. So again, very close relationship across the board, sales and marketing. We co-market together. And I guess lastly, would be, as far as partnership with Apple is that they are a customer. So Apple uses Jamf to manage Apple devices within Apple, and that gives them a vested interest in working with us on the go-to-market side. Absolutely. All right, so as we look at Q2 and Q3, these are quarters that are seasonally strong for the education business. What are you seeing in the pipeline this year relative to some of the more muted trends that we saw last year in the, those two quarters? And maybe what's the implications for AR- ARR growth over the next couple quarters? Yeah, I can, I can talk a little bit about what we're seeing in education and to the extent that it impacts, you know, what we've contemplated in ARR going forward. Maybe, Ian, you can y ou can touch on that. You know, education, we had a great opportunity a few years ago when the CARES Act came out in the U.S., and the GIGA project in Japan, and DigitalPakt in Germany, all of these government fundings to support education when the students had to learn at home, and they bought a lot of iPads at that point in time. We know that the refresh cycle is coming at some point. It's been a bit elongated in commercial as well as education, but we do know it's coming. So that's one of the reasons why education has been muted, not just for Jamf, but across the board. We're seeing a couple things happen, at least in Europe. We've seen some green shoots, especially with respect to our Jamf School product. We've seen, we've seen some slight uptake there. Not calling it a trend yet or indicating bottom, but it's certainly some encouraging signs. And we've also seen some very large new logos come into the pipeline, in the U.S. and then, and then also in Asia, we've seen, some of those. So again, we're encouraged, by that and, and how that looks. We know that refresh cycle is coming. We don't know exactly when. We have not contemplated it in our guidance for, for 2024, but we're prepared and, and ready for when it does. You want to talk about how it impacts AR and the guidance? Yeah, I mean, I think, John, you touched on it with the fact we, we didn't factor in a big refresh cycle here in 2024 in education, and a big choice programs or, or movement to Apple products. We, we factored in the same economics in the education and commercial, but since the question is specifically on education, specifically on education, we did not factor in anything different than what we saw in 2023. Got it. That's super helpful. All right. So it seems the higher-for-longer narrative is beginning to catch up with SMBs, based on some of the recent results we've seen from some of your peer software companies. I guess, what are you guys seeing from your customers with under 250 employees, and maybe highlight what's your exposure there and their renewal characteristics? Yeah, I'll take that one. So we saw in the markets, there were some industries that, or companies, I should say, that got impacted, that had customers that were 250 or less. Just to set the stage with the exposure, when we look at that for our cohorts of customers that have less than 250, it is not big. It is single digits of our ARR. We didn't see any types of impact that were materially different than other quarters. Our product's more sticky. You need management to do it. And typically, it's in our Fundamentals product, not in Pro. You want to be at least, you know, call it, you know, 150, 200 before you get to Pro. So we just don't have a ton of exposure on the Pro. It was mostly in our Fundamentals side, but we didn't see any material impacts within the quarter. Got it. You recently migrated your Jamf Now customers to Jamf Fundamentals, which is the combination of management and security for smaller customers. Are you seeing consistent retention within this base following the move after a couple quarters now? Yeah, so I'll, I'll touch on that. So I, I talk a lot about net retention, the way I look at things, because... And we did just increase that product price, and then, you know, looking at, you know, what the churn has been. Our net retention on that product is significantly higher than the rest of our portfolio. Customers saw the value in both having management and security together. It's really easy to turn off. It's just a shut off of a credit card because they can do their own self-service within the product. We haven't seen, we've actually just seen net retention skyrocket on that product, so it's been a very successful thing for us. Awesome. So the Jamf Business Plan grew 63% in the March quarter. You know, I was very bullish on this and what it could bring, when you released it, you know. I guess it's been about three years ago now. What can you share in terms of, you know, penetration, retention for customers with the plan, and maybe any other notable data points to share? You got the retention numbers on that one. Yeah, I'll talk to that. So it's Josh, we knew you would ask a bundles question. We know you love our bundles. So no, like you said, I mean, we've had 63% growth there. We've seen customers really like it. When you can go to one vendor and say: Hey, I'm here. I need you to help me with this and this, i.e., consolidation vendors, it's been resonating well with our customer base. They see the management and security going hand in hand, and we've seen extreme success with it. We have 41% of our customers now on management and security. So we've seen great success there. The other thing I'd mention here is we just had a spring event where we released things. We talked a lot about compliance. There was one other little nugget within that spring event. It was called Jamf Routines. What that really is, it's just thing as automated workflows with integration, with collaboration tools. So as an example, if you have a tool, device that needs to be reset, you can set things up automatically, and it'll just notify you in, I don't know, Teams, Slack, whatever it may be. You just push a button and it's done. It's an automated workflow. Our customers have been looking for that. It's only available in our Business Plan. It's not available in any of our individual products, and what's exciting about that is customers see the most value there. There, we see stickier and healthier customers within that segment. So we're really excited to continue to move more functionality within that platform itself. Awesome. Wanted to get an update on iOS management and security, particularly for iPhones in commercial markets. So just for those maybe who are less familiar, prior to the Wandera acquisition, your share of both management and security for iPhones was much lower than your market share for Mac management. How has this shifted now in the last couple of years? Yeah, I, I can talk about iPhones. Yeah, so, we just had a recent Investor Day, so quick shout out to the audience. If you didn't see it, it was on March thirteenth. You can go back and look at the webcast on our website, but we did provide some information here. So we have, on the commercial side, around 5 million iOS devices now under management on the commercial side. When we did the recent TAM/SAM study, the amount of devices out there is 104 million. We've been able to differentiate now on the mobile side with the Wandera acquisition, and we're seeing great success there. That's one of our cross-sell efforts that we're really excited about, and I also used this example at Investor Day. I'm gonna use it today. There was an investor group in that room. Their company had just switched from a competitor, a UEM competitor, to us, and they were: "Hey, we're super happy with our UEM provider. We're getting what we need. We've got great integrations." And we're like: "No, you gotta see our business plan," which is kind of everything for mobile. And they're like: "No, let me just see your management." "Fine." And they're like: "Wow, you can do this? Let me see your security. Wow, you really do have a full stack for the iOS side." And they converted the week before our Investor Day. It's that differentiation with the Wandera acquisition, where we can do both management and security, even on a mobile device, that's really setting us apart, and we've got a long runway for that, so we're really excited about that opportunity. Great. Yep. So product-led growth is becoming a popular topic with investors in software as my coverage, you know, continues to optimize their go-to-market, as growth has been more challenging over the last couple years. Where are you guys at in terms of implementing self-service for new and existing customers, and how are you thinking about the timeline to optimizing that process? Sure, I can take that one. I spent 12 years before Jamf in e-commerce, and so I'm very familiar with the end product purchasing and then those types of, and the benefits that that can bring you. As Ian mentioned, we do that today in our Jamf Now product, and we also have that capability in Jamf School product, which is a very similar product for the education space. We haven't gotten there yet with Jamf Pro. We have some things we're working on internally, some infrastructure, technical infrastructure that will make the plumbing of that available, and we're in testing of that right now. Because we realize there's a massive opportunity, not just from within the product purchasing. You can add seats, you can even add functionality that we can start to split out, and you can also add the security pieces to it. So we really want other products, not just more of the same product, but other products as well as we integrate our portfolio and our platform, so it's something we're super excited about. Got it. So one of your key competitive advantages is making updates to your software on day one of when Apple updates their software. As Apple has kind of accelerated their software innovations, particularly for some business workflows and use cases, how have you managed to stay kind of on this leading edge of Apple's innovations? This is basically leaning into our strength. We've been working with Apple for over two decades, and as I mentioned, you know, we have touch points across the organization, not just in the go-to-market, but also in the product side and the development side. You know, Apple being a customer, they have a very vested interest in making sure that our products are ready to go and support the things that they're gonna need internally, and it's very similar to other customers that we would have. So we'll work with Apple on development kitchens. You know, we have a 100,000-plus user community, which we call Jamf Nation. We bring them together every year in person, and during this, Apple not only is a guest speaker at the keynote, but others are as well. But then we really talk to the customers and figure out what are the things that they're seeing, and so we have effectively 100,000 product managers out there that Apple also benefits from. So this isn't just something that's created in a dark room, and then we find out after the fact. We work with them, we can... We feed in a lot of information that the largest Apple admin community on the planet is something that we're very engaged with, and we can provide input into Apple into what are some of the things that their customers are asking for, especially because not only do we have education, but we also have the enterprise, and we have SMB, and we have 48 of the top 10 Fortune 100. So that scalability is all of those things add great value to what Apple's thinking about next, and then how they develop that, and we're working very closely with them. One of the things that we talk about, you mentioned the UEM, which is companies on the enterprise side that will develop a platform or a product for all platforms, not Apple specific. The advantage that we bring is that we are Apple specific, and the reason we can do that is because we're working directly with Apple, to do that. Awesome. So, kind of following up on that point a little bit, when I speak to your customers every year at JNUC, it's pretty clear you guys have a loyal following, and, you know, they definitely view your products as differentiated. I guess maybe from a high level, can you maybe discuss, 'cause this is a question I get a lot, you know, how differentiated can you make your software within Jamf Pro relative to the competitors, in addition to the day one support, which we all know you guys are the leaders on? Well, you know, we already talked about a couple of them, and one of them is having it ready when Apple's ready, and as to the extent that our customers need that. And that especially applies in the security space, because if you have an update, generally there's an update because there could be a vulnerability, there could be other things as well. But specifically, if there's a vulnerability in there, and you can't update your application or your products along with that update, you've got a window in there where that vulnerability is continuing to be exposed. So, I think, you know, innovating at the pace of Apple, having it ready, listening to those customers, sets us apart. The functionality and the scalability of the product, because we've been doing this for so long, and we are Apple specific, really sets us apart from a company that will develop an application that crosses all different kinds of platform. The other thing that really resonates with our customers is the scalability. We have, as I mentioned, customers from the very small business all the way up to 8 of the top 10 Fortune 100. So that being able to grow with Jamf is really important for our customers. And then the fact that we have management and security together. We didn't just decide to do security. We asked Jamf Nation, you know, you've got X number of Apple devices within your organization, and you would like Y number of Apple devices in your organization. Y, the delta. And the InfoSec and IT teams will tell you, "Because, you know, we've got all these Apple devices, we're not sure if we trust all of them to access our corporate resources, so can you help us with that?" That's why we leaned into security, and the fact that we built that security product to work specifically and integrate with our device management product, is really a differentiator. Because not only can you detect a vulnerability, you can actually do something about it. You can't have a secure device without it also being managed, because you can't stop access to that device if you don't have a device management product working with that. You can't make sure that application is updated if there's a potential vulnerability. You can't even deploy a security product without a device management product. The fact that we work those two products work very well together in a single platform really really sets us apart on top of the scale, on top of the fact that it's Apple specific. All of it is designed specifically for Apple, and especially when you need to get into security, that's really important because it doesn't degrade the performance of the machine. It doesn't identify false positives that an application written for another platform may do and does do, according to our customers. Awesome. So, you highlighted the pretty significant security TAM opportunity at the Analyst Day in both kind of two named categories of products you have there, secure and prevent, and identity and access. You just grew your security ARR, I believe, 31% in the March quarter. What do you need to do from a product perspective to kind of further deepen your security TAM penetration over time? You know, lead with Trusted Access. That, lead with the integration of those products, that go in, and really, they're inextricable. If you, if you think about it, they're really one, one platform, one product or solution that our customers... So we're gonna gain more of that security footprint by leveraging the extensive management footprint on over 32 million devices, across 75,000+ customers. That's how we're gonna extend our security footprint into that in the cross-sell, which again, has been, has been very successful. Awesome. All right, moving on to some financial questions which everybody loves. NRR declined a point in the March quarter, sequentially, and you previously made the comment it would decline about a point each quarter in 2024. Now that you kind of have another quarter of visibility into renewals, is that kind of still what you think investors should be expecting for the balance of the year? Yeah. Short answer is yes, but, yeah, let me give some color there. You know, we again layered on our outlook. We took 2023's what happened in 2023, and we layered it in 2024. We haven't moved from that. You know, there's both headwinds and tailwinds out there. You know, look at the banks' forecast of interest rates. You know, originally, it was, "Oh, hey, you know, interest rates are gonna start getting cut in June, July." Now, they're moving out to December, and so we took the approach this year, we're not gonna be reliant on the market. We're gonna control what we control and focus on, and that's the component within NRR that gets impacted from that is the upsell component, and that's the component that I'm saying I believe still continues down throughout this year. Again, that cross-sell, when we IPO'd, our security was $5 million, roughly, in ARR. Today, it's $138 million, growing at 31%. So at some point, that becomes the stabilizer, becomes the floor, and starts to accelerate that math and the growth rate, and that's one of the things I've asked people to consider. This year, we are factoring the muted economics, but that is starting to set the floor at the end of this year, and that I think that's the key component to keep in mind and why I've called that number. Awesome. All right, so one of the questions I get commonly is, how do you think about the correlation of Apple's device shipments to your guys's own growth? In the most recent downturn, particularly with tech customers, it seems the layoffs were a bigger factor than the slowdown in Mac unit ships. Help us understand, you know, how you're thinking about correlation and these two factors in the current cycle. Yeah, look, we don't look at one quarter of shipments. That's not indicative of our business. If we see a few quarters, that's a different story, but one quarter is never certain. We do have, as a reminder, both when you look at tech and education, that's about 45% of our ARR. Well, we saw the tech layoffs in January. I think we all did. It was about the same level that we saw last March, and so we'll go out, we look at our renewals, and we just factor those things in. So while we're poised, that gives us a potential tailwind if those consecutive quarters continue, we also look at other factors and look who's coming up for renewal, how what usage looks like, and those other things. We look at all those things and triangulate, and that's how we've come up with our prudent guidance points. Got it. All right, so you provided a detailed financial plan at the March Analyst Day, as we all know, including the 10% ARR growth re-accelerating to 14% in 2025. Can you maybe, can you guys re-accelerate growth next year, even if the macro becomes incrementally challenging exiting the year? Or what were kind of the underlying assumptions to that re-acceleration? Yeah, and I was starting to touch on it in a different question, but that's the point on the cross-sell and the security. So there's three ways we see cross-sell. One's commercial security, education security, and the mobile. We're, we're typically in there on the Mac, it's not always on the mobile. So we see those three opportunities. We know, we showed at Investor Day, too, what the chart looked like just for the commercial piece of the business, and we've shown significant growth there. It does set a floor for growth rates as we continue to focus on that. So that is one of the things people should consider. This year, again, we've had completely muted assumptions around the upsell or device expansion. We do have just slight upticks in 2025 and 2026, but it's not reliant on some big return. Got it. All right, so when you look at the education business, for those maybe who aren't familiar, the ASPs are quite a bit lower than in the commercial markets. How do you think about making investments in product and sales to kind of maintain your leadership in that category, and does it make sense to invest an incremental dollar of capital versus investing in more business-oriented products and sales? Yeah, it's a good question. So to rewind the clock and level set, too, we started in education. That's where our roots come from, and our go-to-market motions with Apple are in the education area. So it's a very important area to our business, and we're really excited about it. To think about product development, though, we talked about it on Investor Day, about building shared capabilities, and what I use as an example there is, today, we have three management tools. We have, let's call it Now, we have Pro, and we have School. Well, building these shared capabilities, as new features come out from Apple, like Declarative Device Management, we can build on that shared capability platform that can adjust all those platforms. So said another way, with the education business, if there we can invest, that will adjust both, will impact the commercial side and education side. So there's not like an excess spend to that, and it will just naturally flow that investment on the commercial side will naturally flow over. So it's a really efficient model that we're starting to lean into over this next three years. Got it. One question I didn't have on my list, but I'll throw it in here, is: when you look at the domestic, the U.S. business, that's not as heavily through the channel as the international businesses. Maybe you can just help investors understand, you know, what is the dynamic in terms of the direct versus indirect in the U.S. versus the international business? Yeah, I can take that. Again, from coming from past lives and understanding the leverage you can get and the scalability you can get out of the channel business, and realizing that we had very little U.S. business going through the channel at Jamf, that was one of the first things I put in place, and we've leaned into that over the past couple of years, especially. Internationally, we have about 80% of our business goes through the channel, and that makes sense because we don't have full support structures and languages and all this in every different market that we sell into, over 100 different countries. So we've leaned on the channel, leveraged the channel very heavily outside the U.S. We're getting there inside the U.S. We're about approaching 60%. I think 57% of our business is globally goes through the channel, with 80% going through the international channels. So we have a, we have some ground to make up in the U.S., but we're getting, we're getting much better. We had sub 30%, you know, just a couple of years ago. You know, we've, we've got a channel team that focuses on developing a partner program, that's really been beneficial to understand which partners can focus on which industries and which segments, and, and how to, and how to lean into them and incentivize them. The other thing, you know, we talked about, you know, product-led purchasing. In line with that efficiencies, we'll be able to leverage some of the scale there with that internal infrastructure that I was talking about there, that we are in testing now. We do have a partner portal, that's coming as well. Today, when a partner in the U.S. or even internationally wants to generate a quote, they have to call a channel rep at Jamf, and that's very inefficient on both their side and our side. Now, having the capability to log in themselves, to create a quote or to register a deal all online, is something that will increase our efficiency and scale, on the channel side very much so. How should investors think about the economics of a sale that's direct versus indirect in the US versus international markets? Is the net kinda economics to you similar, whether a direct rep is involved or whether the channel is involved? Maybe just help us understand the dynamics there. Yeah, I mean, internationally, because that's always how we've done it, we wouldn't see any deprecation of that. We'd see a little bit of upside, especially as they're able to come in and register the deal themselves. That's where we would see the most upside, internationally, because we're doing the most business outside the U.S. through the channel. We do today, we don't wanna create an internal conflict as far as, you know, is that a channel deal or a direct deal? So in the U.S., we do compensate the rep on doing deals with the channel so that they can teach them how to fish. At some point, we won't have to do that because the channel will be a bit more self-sustaining, much as it is outside the U.S., and that'll be an efficiency that we- That's a source of upside to margins, potentially. Yes, it is. All right, so, last question from me, and then we'll see if there's a couple from the audience. You highlighted at the Analyst Day that the expected dilution from stock-based awards of 2.5%-3% from 2024 to 2026. As you kinda continue to ramp free cash flow, would you consider repurchasing shares to offset the impact from stock-based comp, or should we expect M&A to remain a priority for capital allocation? Yeah, so something there. So I said, I think we said that by 2026, it'll fall in the range of 2.5%-3%. Oh, by 2026. By 2026. Okay. I just wanna adjust that. Yeah, so, yeah, we're always looking at dilution, we're always looking at our capital allocation, just to rewind the clock. We've said capital allocation, we're gonna maintain a strong balance sheet, we're gonna reinvest in the areas of the next highest returns, which is typically been our business, and then, you know, M&A that accelerates our roadmap. As for, I'll call it return to shareholders, you typically see that in a pyramid of this capital philosophy. We didn't put in there. We're still growing quickly. However, I think if, as we just saw this week, if there's an event that's specific that we see causes dilution, or that gives us an opportunity to mitigate dilution, we will take that opportunity, but it's event-specific. So, you know, is it, you know, vesting of RSUs? Is it, you know, an offering? Is it something else? But we have to balance that because our float has always been... We haven't had the most float of our stock, and we wanna make sure that is the number one thing. We will buy back as it makes sense. So I wouldn't do it individually, though. Understood. All right, we got a couple of minutes left. Does anybody in the audience have a question? All right. Well, with that, I think we can wrap things up, and I wanna thank everybody for the time today. Thanks, Josh.