Good afternoon, everyone, welcome to Snap Inc.'s second quarter 2023 Earnings Conference Call. At this time, participants are in a listen-only mode. I would now like to turn the call over to David Ometer, Head of Investor Relations. Thank you, good afternoon, everyone. Welcome to Snap's second quarter 2023 Earnings Conference Call. With us today are Evan Spiegel, Chief Executive Officer and Co-founder; Jerry Hunter, Chief Operating Officer; and Derek Andersen, Chief Financial Officer. Please refer to our investor relations website at investor.snap.com to find today's press release, slides, investor letter, and investor presentation. This conference call includes forward-looking statements which are based on our assumptions as of today. Actual results may differ materially from those expressed in these forward-looking statements, and we make no obligation to update our disclosures. For more information about factors that may cause actual results to differ materially from these forward-looking statements, please refer to the press release we issued today, as well as risks described in our most recent Form 10-Q, particularly in a section titled Risk Factors. Today's call will include both GAAP and non-GAAP measures. Reconciliations between the two can be found in today's press release. Please note that when we discuss all of our expense figures, they will exclude stock-based compensation and related payroll taxes, as well as depreciation and amortization and non-recurring charges. Please refer to our filings with the SEC to understand how we calculate any of the metrics discussed on today's call. I'd like to turn the call over to Evan. Hi, everyone, thank you all for joining us. We began the second quarter of 2023 with a strong focus on growing our community, accelerating our revenue growth, and leading in augmented reality. Our community grew to 397 million daily active users in Q2, and we are working to deepen engagement with our content platform, with the number of content viewers and total time spent watching content increasing globally year-over-year. Our focus on visual communication between friends and family is a strategic advantage that has enabled us to build engaging and retentive products and services across our platform. To achieve a higher rate of revenue growth, we are focused on three key priorities: First, investing in our products to sustain community growth and deepen engagement. Second, investing heavily in our direct response business to deliver measurable return on spend for our advertising partners. Third, cultivating new sources of revenue to diversify our top-line growth to build a more resilient business. We generated revenue of $1.068 billion in Q2, a decrease of 4% year-over-year and an increase of 8% quarter-over-quarter. In Q1 of this year, we made changes to our ad platform to unify the ad experience across our service and retrained our models to drive more in-session click-through conversions. In Q2, we made progress toward improving results for advertisers through machine learning model updates and infrastructure improvements, new ways of measuring and optimizing advertising spend, and new leadership for our go-to-market efforts. We are encouraged to see that this progress is beginning to translate into improved results, with record active advertisers in Q2, up more than 20% year-over-year, and through improved advertiser retention compared to the same period last year. We made progress diversifying our revenue through Snapchat+, our subscription service that offers exclusive, experimental, and pre-release features, which now has more than four million subscribers. We are excited about the early progress we are making with AR Enterprise Services, our first SaaS offering, which helps retailers use our augmented reality platform to drive sales and reduce returns on their own applications and websites. We also rolled out My AI globally, and we recently began early testing of sponsored links and conversations with My AI. Diversifying our revenue growth is an important strategic initiative, and we believe our leadership in messaging and AR technology provides a strong foundation to help connect businesses to our large and engaged community. We are calibrating our investment levels to build a path to free cash flow breakeven or better, even with reduced rates of revenue growth. We will continue to invest with a long-term perspective, especially in areas that are critical to realizing the long-term opportunity of augmented reality. While our strategic investments in cloud-based ML infrastructure have put downward pressure on margins in the short term, there are early signs that the improvements to ranking and personalization of our content and ad platforms are leading to deeper engagement with content by our community and stronger returns on investment for our advertising partners. We have further scrutinized our operating costs in order to invest incrementally only where it is necessary to achieve our strategic priorities, and in particular, to drive top-line revenue acceleration. Last year, we reorganized our team, reprioritized our business initiatives, and laid out our strategy to re-accelerate revenue growth by investing in community growth and engagement, improving our direct response advertising business, and diversifying the sources of our revenue. While we are still far from achieving the revenue growth to which we aspire, we believe that the momentum we have established in community growth and content engagement, the significant improvements we are seeing in return on investment for direct response advertisers, and the early growth of Snapchat+ to more than four million subscribers demonstrate progress and further validate our strategic focus. Thank you. With that, we will begin our Q&A session. Thank you. We will now begin the question and answer session. To ask a question, you may press star, then one on your touch tone phone. If you are using a speakerphone, please pick up your handset before pressing the keys. To withdraw your question, please press star, then two. In the interest of time, we ask that you please limit yourself to one question. After your initial question is asked, your line will be muted. At this time, we will pause momentarily to assemble our roster. Our first question is from the line of Mark Shmulik with Bernstein. You may proceed. Yes, thanks for taking the questions. Derek, on the guide, this is the first time you've guided in a while, but I guess I imagine investors were hoping for a bit more sequential improvement. Can you share just, you know, what's giving you the confidence to guide more formally now and just how to think about some of these puts and takes that get into that guide? And then I guess as a follow-up, a bit more longer-term focus for Jerry. You know, in the investor letter, you talked a lot about adding a lot of ad impressions, active advertisers up a lot, still rebuilding the ad server, launching new ad products. It sounds like many of your historic, you know, major ad buyers are still not back to kind of where they were. What's the easiest way to think about getting back to double-digit growth if you were to stack rank? Is it getting these new ad buyers to increase their wallet or, you know, really focusing on your kind of major accounts and getting them back? Thanks. Hey, it's Derek speaking. Thanks for the question. You're right. I know that we've not provided formal guidance since the very beginning of 2022, so it is a big shift for us to begin providing formal guidance again. I think that does reflect an increased confidence in the trajectory of our business. I think when we've approached thinking about guidance, one of the things that we've tried to do is make sure that we're reasonably including at the top end, the attainable upside that we see in the business, and then on the downside, making sure that we're including the reasonably visible and quantifiable downsides on that side. Look, as we enter Q3, the business is in a period of rapid transition as we invest to drive improved performance on our ad platform. You'll note that we've ramped investment in infrastructure, really rapidly, to support monetization, as well as the depth of content engagement and My AI, each of which is or will be a key input to monetization over time. Given the progress we're seeing there, we're pretty excited and encouraged. You know, we've seen active advertisers up 20% year-over-year, higher active advertiser retention year-over-year, and a more than 30% lift in purchase-related conversions. We're increasingly confident that these investments are a key input to sustain revenue growth over time. That said, how the continued ramp in these investments will impact the ad platform performance, advertiser demand, and top-line growth in the immediate weeks and months ahead is more difficult to predict with precision. In addition, forward visibility of advertising demand remains somewhat limited. We've seen continued strength with verticals such as CPG and restaurants and travel, while we've got some other sectors that continue to face challenges that are unique to their sector or the macro environment, and therefore, make forward visibility on advertising demand a little bit more difficult or challenging to calibrate, especially in a quarter that is typically somewhat back-end weighted. For Q3, the guidance range calls for a range of between -5% and 0% on a year-over-year growth basis, and we think this reasonably, you know, includes, you know, the attainable upside and all of these risks that we see that could possibly drive us towards the low end. I hope that is a good set of context for how we think about guidance generally, given we haven't done it for a while, and how we arrived at it specifically for this quarter. Thanks for the question, and I'll turn it over for the other one. Hey, Mark, this is Jerry. Thanks for the question. You know, let me just kind of give you a little bit of history on what's going on here. We had a small number of customers who were adversely impacted by those changes that we made. They were mostly concentrated in North America. That's why you'll see the disruptive impact of those changes are most pronounced in North America. One of the things to note is that of the advertisers who were impacted, over half of them have recovered their spend to prior levels in previous years. We've made a lot of progress with that. We're learning about what it takes to make these advertisers successful. We're working with those remaining advertisers to get them back to that level as well. I do feel pretty confident or comfortable about the direction we're taking. As Derek mentioned, we are seeing more active advertisers, and it's a diverse set of advertisers. The number of active advertisers is up 20% year-over-year. Most importantly, I think we're seeing more spending year-over-year in advertiser spending on lower funnel optimizations, which is where we've been spending a lot of our time. Let me also just kind of give you a sense about what we're doing to increase share of wallet and grow the space, grow demand. A year ago, when we restructured the team and reprioritized this business, we brought in this very experienced leadership team to drive more operational focus, and I'm pretty excited about the work that's happening here. First leader that joined was Ronan Harris, and we're seeing some very good progress in EMEA. Ajit Mohan joined shortly after that, and you'll see that we're seeing progress in APAC. We've got a couple hires that I'm pretty excited about, who have started working in their spaces. Rob Wilk joined recently in the Americas, and Patrick Harris is overseeing our global partnership space, and they're starting to take action in their teams. As we look into the second half, the core focus is accelerating revenue, and what we're starting to see... Let's see, we've improved processes for bringing in new clients or prospecting processes. We know that our ad platform updates are giving major new opportunities for these new clients, in addition to these, our top clients of old. We launched several go-to-market process improvements, which are showing positive results, both in increased share of wallet with existing customers and growth relative to market verticals that we're operating in. One thing, a couple other things we're doing, we're systematically improving the implementation of our ad products. That means a systematic and scale program for understanding advertiser objectives, ensuring that they've got the right implementation on the signals we need for their campaigns, making sure that their campaigns are set up successfully, and then just working with them, iterating with them, which is, again, where we've seen success with the existing customers that have backed previous spend. We're also working on automating those steps so we can make sure these are easier for advertisers going forward. This is just a few of the things that we're doing to improve efficiency and effectiveness in this go-to-market space that I think is going to bring more customers and more demand to the space. Thanks for that question. Thank you. Our next question is from Rich Greenfield with LightShed Partners. You may proceed. Hi. Thanks for taking the question. I guess, Evan, you know, I guess the thing that everyone's thinking about is, like, it feels like there's this disconnect between the overall headcount of the company. I think in the release you sort of talk about reprioritizing where the employee base is. I think the question is how many of the employees are sort of near term or even medium-term revenue focused versus longer term projects? You know, we've seen, and not that we always love them, but, you know, you've seen people like Elon and even Bob Iger make some very hard decisions on reprioritizing initiatives, making big headcount cuts. You still have, like, 5,300 employees working. You know, are there still a lot of employees that are working on like, you know, 5-plus year projects that are not generating revenue? Like, I think, is there some way you could frame how many people today work in AR versus Spectacles versus advertising? You just mentioned some important recent hires versus the content side of it, which, you know, what I think of, like, Spotlight and how much Spotlight can offer you in terms of growth. Like, how have you changed the balance, and what does that look like today? Are you done optimizing? Like, do you have to still make hard decisions on headcount going forward? Because 5,300 people with revenues declining still seems problematic for a lot of investors, given how your stock's reacting after hours. Hey, Rich, thanks so much for the question. You know, we've always been clear that we're building Snap for the long term, that means that we really have to strike the right balance between growing and optimizing the business we have today and, you know, also planting seeds for future growth. That's really core to how we've evolved from being a simple messenger, you know, to a diversified platform with engagement across our Map, Augmented Reality, and of course, content in Stories and Spotlight. As you know, engagement is a fundamental input to monetization on Snapchat, which is why we're focused on innovation. It's really the only way we've been able to compete with companies that are far bigger than we are, the way we've been able to grow to more than 750 million people, using our service around the world. Sometimes these new products are monetizable immediately, but oftentimes, as we grow engagement, they become monetizable in the future. This was definitely the case for our content, business and of course, for our AR platform, as well. You know, when we confronted the rapidly changing economic environment a year ago, we made the difficult decision to sunset up some products that hadn't yet reached scale, and we reduced the size of our team by approximately, 20%. As I mentioned, we support a community of more than 750 million people, as well as our advertising partners and content partners, and we do that with a team of about 5,000 people. On a revenue per headcount basis, I think you could make the case that we should actually invest more, especially given the size of our long-term opportunity. We wanted to really thoughtfully manage our cash flow and dilution because financing costs have increased, and, you know, our share price has trended lower. Things like Spectacles or AR Enterprise Services, for example, build on core investments that we're making today in our AR platform that's driving revenue and engagement on Snapchat right now. That really represents a focused way to build on our core strengths by investing in longer term initiatives that are technically complex and, you know, more difficult to replicate. By building on those core strengths in AR, we're able to make long-term focused investments more efficiently because these efforts represent an extension of our core platform rather than, you know, totally new bets. Of course, from a headcount perspective, while, you know, I wish we could invest more in some of our more long-term initiatives, I think we have the right balance for where we're at today, and we really need to accelerate near-term revenue growth while simultaneously setting up the business to sustain that revenue growth over the longer term. Fortunately, we've got a balance sheet to navigate this challenging period, so we don't have to, you know, say goodbye to our longer term opportunity as we tackle some of those shorter term headwinds. Thank you. Our next question is from Doug Anmuth with JP Morgan. You may proceed. Hey, this is Katie on for Doug. Thanks for taking the questions. First, I just wanted to dive deeper into the infrastructure costs. Feels like they're stepping up again, you know, materially again into the third quarter. Just curious if you could walk us through again what these are going towards. It feels like it's, you know, even higher now than how you were thinking about things a couple of months ago. Is there a change there in terms of that level of investment, and how can we measure that these investments are paying off? Thanks. Hey, it's Derek speaking. Thanks for that question. You know, first noted, the investments we're making in the near term here in infrastructure are substantial. We've been making investments into a number of areas. I'll break that down for you a little bit. First into our ad platform in order to make the advertising platform more performant. Second, into driving ML for content in order to drive deeper depth of engagement with our content platform. A lesser portion of the investment into products like My AI, which are, you know, intended to support that product and other innovative products on the platform. As I mentioned, you know, a substantial portion of the investment going into things more directly related to immediate monetization, like the ad platform and depth of content engagement. I think importantly, you know, as we, as we made a very big ramp in the investment over the past quarter, we shared last quarter that we wanted to see results from that investment in order for us to sustain that forward. I mentioned a little bit of this earlier, but across each of those areas where we're putting investment in, we're really encouraged with the early results we're seeing from those investments. Whether that's the 20% rise in active advertisers, higher retention, and importantly, the 30% increase in purchase-related conversions that we saw in Q2. These are all really important signs that the investments that we're making into the DR ad platform are beginning to pay off and makes us happy with the investment we've made there. Similarly, on the content side, we started ramping investments in ML to support depth of content engagement sooner, that's been ramping over a longer period of time. You can see as a proof point there, for example, that time spent with Spotlight more than tripled year-over-year in the most recent quarter. Again, really pleased with the progress of the investments that we're putting in there. It's early for My AI. As I mentioned, it's a smaller portion of the investment, but we have shared some data points in our investor letter, and recently, we are seeing really high volumes of conversations with My AI that provide clear intent signals about products and services that our community is interested in. Of course, that has obvious ramifications for our ad platform and monetization over time. Given the results we're seeing today, we do expect to make a further step up in investment here in Q3 to accelerate the progress on what we're seeing here, and in particular, to accelerate the progress we're seeing on things that are very directly related to monetization. If you look at Q2, the step up in Q2 was about $0.11 to $0.70 on infrastructure per DAU. We've shared that our guide for Q3 is for a range of between $0.79 and $0.84. At the midpoint of that range, it would be a similar step up in Q3 that we saw in Q2. As we move forward, we're gonna continue to calibrate these investments incredibly carefully to ensure that they're both productive and affordable over a reasonable time horizon. Importantly, I wouldn't simply assume that the sequential increases in infrastructure per DAU that we've observed in Q2 and guided for Q3 will lead to similar increases in Q4 or future periods. We're gonna measure the returns on these investments carefully, and whether they are sustained forward at current levels, shrink or grow from here, will depend entirely on the results we see from the spend, and in particular, the acceleration we experience in our top line. You know, we remain committed to charting a course towards adjusted EBITDA profitability and positive free cash flow, even at reduced growth rates and into the medium term and longer-term margin targets that we shared at our Investor Day. You know, today, I think we've been able to balance those investments carefully, even through a period of incredible transition on our ad platform. Today, we've been able to deliver on that with free cash flow over the trailing 12 months at positive $81 million and, trailing 12-month operating cash flow at about $250 million. We've been very careful to make that balance over reasonable time horizons, and we'll continue to do that going forward. Thank you. Our next question is from Tom Champion with Piper Sandler. You may proceed. Hi, good afternoon. Can you talk a little bit about the progress with DR tools? Where are you today relative to your plan and what you hope to implement? I'm wondering if you could just speak briefly on SKAN 4.0 adoption and whether that might be helping you recapture some lost cohorts over the last year. I'm thinking of verticals like gaming or app downloads. Any comments there would be helpful. Thank you. Hey, Tom, thanks so much for the question. We're really excited about the progress we're making on our DR tools. Obviously, over the last year, a huge priority for us has been signal restoration, so creating solutions like Conversions API, that advertisers can integrate to pass back signals in a privacy-safe way. I'd say our focus right now is really more on the go-to-market side, because what we're finding is when advertisers have integrated our solutions and configured them correctly, they're really able to drive strong results. This is especially the case, you know, with e-commerce and pixel purchase, where we're seeing strong momentum. What we've been trying to do is scale that with our go-to-market efforts. For example, we released a new dashboard for our team to be able to make sure that advertisers are sharing signals correctly in a privacy-safe way. That's helping us find these configuration errors that if we can, you know, correct, can lead to much stronger results for our advertising partners. We're definitely taking a more consultative approach with clients as well. I think for e-commerce advertisers, you know, and purchase related conversions, we're seeing a lot of progress there. On the app side, there's still some work to do, and that'll be a big focus for us in the back half of the year. SKAN will be a piece of that, but there are tools like value optimization, for example, where app advertisers want to be able to optimize against users they think will spend a lot of money in their app, for example, and we don't offer that level of fine grain optimization today. You know, app will be a priority for us, but I think the good news is we're seeing some real momentum on the e-commerce side, and the work we've done to update our models and focus on click-through conversions is really delivering strong results for advertisers. Think of it as go -to- market is key for our e-commerce-focused advertisers, and then on the app side, there is a little more work to do, but we've got a clear path to getting there by the end of the year. Thank you. Our next question is from Justin Post with Bank of America. You may proceed. Great. Thank you. Apologize if these have already been asked. A couple questions. First, on the gross margin pressure, is there a level of cost per user or a gross margin level where you think that can level off? How should we think about gross margins, you know, kind of a year or two years from now? Really interesting usage stats on Spotlight. I'm wondering if that is kind of more than offsetting the Stories pressure at this point, or if you're seeing, you know, overall trends, you know, flipping positive as far as usage per user related to Spotlight? How much is that moving the needle for the entire ecosystem? Thank you. Hey there, it's Derek speaking. I think on the gross margin pressure, I would say, you know, on the medium and long term, we articulated what we expected margins to look like on the gross margin side at our recent Investor Day. While we've had a really substantial step up in infrastructure investment in Q2, and we expect to make another substantial step up in infrastructure investment in Q3, I don't view that as changing what we expect for medium and long-term gross margins. Importantly, the gross margin story for Snap is going to be about reaccelerating the top-line growth and how our business scales in a growth scenario. What we're seeing right now is a significant opportunity and need to invest in infrastructure to support the performance of our direct response advertising business, and a significant opportunity to invest in infrastructure to drive depth of engagement, which will contribute to our advertising opportunity over time, as well as in other innovative products like My AI, where we see a direct input to understanding intent and interest, which also contributes directly to the top-line engagement. What you're seeing here is a really significant step up in this immediate period of time in order to support the transition in our business and our top line in order to reaccelerate. I would, though, still expect that our business will show phenomenal unit economics as we're able to reaccelerate the top line. I won't reiterate it here because I've already talked at length about the early progress we're seeing from those infrastructure investments. We certainly, I think the double down on the infrastructure investment in Q3 is a sign, in addition to the metrics I've already shared, that we're incredibly confident about how those infrastructure investments are contributing to the reacceleration of the top line and towards sustained longer term growth. Anyway, hopefully that gives you a better understanding on margins. I realize it's choppy in the very near term, but we think this is critical to reaccelerating the top line. I'll turn it over to Evan to take the second question you had there on Spotlight. Hey, thanks so much for the question about Spotlight and our content business. We're really excited about the trends that we're seeing. Obviously, globally, content viewers and content time spent continue to grow meaningfully, and Spotlight's been a big driver of that, you know, reaching 400 million monthly active users in the quarter, with time spent up, you know, 3x year-over-year. We're definitely excited by that momentum. You know, in the U.S. specifically, the trends we've seen are essentially Friend Stories viewership is trending better than we had forecast. The rate at which the Friend Stories viewership decline is happening has slowed, and at the same time, we're seeing some real momentum with Spotlight. I'm not sure in aggregate, if we've flipped positive yet. I think we're getting closer, which is really exciting, and the trends are moving in the right direction. Globally, a lot of momentum and content in the U.S. as well. You know, a combination of Friend Stories, you know, performing better than we'd expected, and then Spotlight and Creator Stories, you know, driving a lot of momentum for us. Thank you. Our next question is from Ross Sandler with Barclays. You may proceed. Hey, guys. I just had two questions. The first is a follow-up on the hot topic of infrastructure cost per user. There's a lot going on here with, like, the rebuilding of the ad model, the content ranking model, some of the, you know, generative AI products you're building for Lens creation, etc. There's My AI, which just took off like crazy for the last, you know, 10 weeks or so. Is the uptick based on the first bucket, which is all these kind of discrete projects that are going on, or the second bucket, meaning inference costs for My AI is going up, and so that's just a reflection of, like, future usage? How do you expect those two buckets to play out, as we think about that hosting cost per user? The second question is, you guys have three new regional heads of sales. I think they've been in the seat for now, a little over a quarter. Just how do you feel about that team? Is the success in bringing back some of those large advertisers who've cut back a function of just time and, you know, getting more confidence around the attribution? Do you expect these new sales organizations to really start to move the needle on revenue? Any thoughts on that? Sure. Hey, it's Derek Andersen speaking. I'll take the first bit on infrastructure. You know, speaking specifically about, you know, the drivers, you know, we've tried to speak to these sort of in order of magnitude. Definitely the focus here is in both Q2 and as we look forward to Q3, is in the incremental investments that we're making to drive the advertising platform, specifically, and depth of content engagement. Certainly, there are other investments that we're making, in infrastructure to drive other products, and you mentioned My AI, which is specifically one of them. The investment there is much smaller. And then there's other investments we're making, you know, in things, like Lenses and so on that you, that you mentioned again. You know, the big focus here of the investment is on the investments necessary to drive the improvement in the ad platform, as well as the investment opportunity to drive depth of engagement, which contributes directly to the ability to drive up inventory and grow revenue over the longer term. In terms of how My AI scales over time, you know, I think it's been manageable so far. As I mentioned, a smaller component of the overall ramp and the spend, and, you know, we're continuing to watch it carefully. But we've been pleased with the unit economics so far and the relationship between, you know, how we think that can contribute to intent and personalization and, you know, monetization relative to the, to the unit cost. We'll monitor that carefully over time, but so far, we're comfortable with what we're seeing there, and it's not the focus of the ramp that we're experiencing, in general. Hopefully, that context is helpful there in understanding what's going on. I'll turn it over for the second part of the question. I guess I can chat a little bit about our regional presidents, so Jerry doesn't have to pick a favorite. Ronan's been in the role the longest, started about nine months ago, overseeing EMEA. He's made a lot of progress and really identified much better ways for us to go to market there. We've been taking those learnings, actually, and applying them around the world. Ajit is now leading our business in APAC. He's been here not quite as long as Ronan, but been here for a bit. Rob just started in the Americas in Q2. I think, you know, we've got a bit of work to do in the Americas. Rob's been making changes to his team quickly, building out vertical plans to really understand where the opportunity is, and of course, spending time with a couple of the advertisers, you know, who've not yet returned to prior levels of spend. I think, you know, the reasons are pretty varied as we kinda dig into that bucket. In some cases, you know, there are advertisers with competitors who have, you know, who are actually ramping their spend considerably and seeing much better performance than they ever saw before. We've really been trying to debug on a case-by-case basis and make sure advertisers have adopted our solutions correctly. I think more importantly, as we look forward, building a more diversified base of advertisers because we're focusing on these lower funnel goals, is gonna be really important for our business. I know Rob's thinking a lot about how to build out the torso of our advertisers, 'cause we have seen a lot of success with this more focused strategy in the Americas, but it's clear we also need to diversify our advertiser base, so I know that'll be a real priority for the team. I think just taking a step back, it's been really exciting to get this regional focus on our business, you know, more broadly, not just in terms of revenue, but also in terms of user growth and partnership, and, you know, of course, everything we're doing on the content side. So seeing that focus translate into results has been really gratifying in EMEA and APAC, and we'll be excited to hopefully return to growth in North America soon. Thank you. Our last question is from Eric Sheridan with Goldman Sachs. You may proceed. Thanks for taking the question. I'll just squeeze one in. A lot's already been asked, but maybe just broadly, your view of the competitive landscape for user growth, engagement, sort of rising utility in your app vis-a-vis other potential competitive companies. How are you thinking about the mixture of what you see as the competitive landscape, where your strengths sit today to invest behind and lean into? We've talked a little bit about it on the call, but elements of continuing to capture rising utility on the consumer side that can produce sort of signal and measurement and advertising or monetization opportunities you look out over the medium to long term. Thanks so much. Yeah, thanks so much for the question. We're really excited about this unique role we play in the market, you know, connecting friends and family with visual communication, and we use our strength in that very frequent visual communication to build other businesses around it. You can think about all of our different platforms, like our content platform or AR platform, as different ways to, you know, of course, increase engagement, but also monetize this core communications use case that we provide. We actually think, you know, providing this place for friends and family to communicate, it's only become more important as more and more platforms focus on, you know, public social media-style features, where people feel like they have to compete for popularity, compete for likes and comments. It's never been more important to actually build deeper relationships with your friends and family. That's really the key utility that Snapchat provides. Anywhere that we can play to that strength, you know, we can really build momentum. For example, with Spotlight, one of the ways we've been able to drive more viewership and time spent is through enabling better, you know, sharing of content between friends. People love to share videos with their friends, you know, laugh about them or share a video that makes them think of somebody that they care about. We've been able to use that to drive more Spotlight engagement over time. I think, you know, similarly with My AI, we saw a real opportunity to play to our strength in communication, to provide more utility with an AI chatbot, but also improve business performance by using, you know, those intent signals, which, you know, historically, we'd have to infer. We'd have to guess what people were interested in based on the content they were watching or ads they were engaging with. With My AI, we can use, you know, very clear intent signal to better rank and optimize, you know, content across our platform, AR experiences, and of course, advertising as well. You know, I think we continue to occupy a really special place for, you know, supporting relationships between friends and family, and we've really built our business around that over time. Thank you. This concludes our question and answer session, as well as Snap Inc.'s second quarter 2023 Earnings Conference Call. Thank you for attending today's session. You may now disconnect.