Good morning, everyone. Thanks, everyone, for joining us. My name is Alexandra Steiger, and I'm part of the U.S. Internet Research team at Goldman Sachs. We are very pleased to have Kate Gulliver, the CFO of Wayfair, with us today, and also James Bound, Head of Investor Relations and Treasury. Good to see you again, and welcome to our conference. Thank you. Thanks for having us. Happy to see all of you. Maybe let's kick it off with you, Kate. You joined Wayfair almost 10 years ago. You've occupied a number of roles before being officially promoted CFO last year. Can you briefly talk about your background, your career trajectory at Wayfair, and also touch on your current role and your key priorities? Yeah. So yeah, 10 years. It still sometimes feels much longer, sometimes it feels much shorter, and now I feel old. But I started at the company. I had been a private equity investor before I joined Wayfair, and I joined about 10 months pre-IPO, and my first role at the company was actually running our IPO. And I know some of you from that time period. Many of you have been following us for quite a long time. Following that, I moved to a variety of different roles across the business, always working for our former CFO, Michael Fleisher. And upon his retirement last year, stepped into the new CFO job. And so it's been fun because I've gotten to see our growth. At the time of the IPO, we were about a little under $1 billion in sales. We had about 2,000 people. Obviously, the business is much different today. We didn't have a logistics network. We hadn't expanded into Canada. We hadn't expanded into the B2B business. Several, a number of the things that we see as core growth drivers going forward, you know, weren't even fully contemplated at that time. So it's been very exciting to be a part of the growth story and think about those expansion opportunities. As I think about, you know, core priorities today, over the past 12 months, our core priority was really cost management and making sure that we were getting our cost structure to a sustainable place that we could then profitably grow from. We are excited about, you know, the cost savings that we've achieved. You know, going forward, what we're focused on is really driving profitable growth from here, and ultimately, over time, managing to free cash flow per share. Obviously there's some capital structural work as part of that as well. So you recently hosted an investor day where you laid out the opportunity ahead for Wayfair. Maybe starting, you know, high level for those that are less familiar with the story, can you help frame the opportunities that you see for the company in the years ahead, and how do you see Wayfair's positioning to execute against those? Yeah, I'll start, and then, James, you should feel free to jump in. That was our first investor day in 10 years as a public company. So if you haven't seen it, I highly encourage you to check it out. It's a lot of good background information. You know, we did outline, and I think this is really the core part of, you know, the presentation, was some of how we've thought about the growth drivers going forward. If you think about pre the pandemic, we were always a very sizable share gainer in the category, and that was driven both by the shift to online in the category and then our own share gain within that by what we felt was a very compelling offering across our core priorities for the customer: price, availability, and speed. As we think about the growth drivers going forward, you know, the first piece is that core offering being competitive. We feel it's in actually the most competitive place it's been in many years. Continuing to take share as a result of that, and then it's layering in some of these newer initiatives. So, Perigold, our specialty retail brands, our B2B business, over time, supplier advertising and physical retail. So we have a number of growth vectors, that, you know, were not as big a driver in the past, that we do think will be meaningful going forward, allowing us to continue with, you know, sizable share gain in the category. What I think is particularly unique about the way that we're operating right now, and what we tried to underscore, you know, in the investor day, is that much of the cost to build and grow those initiatives already sits within the P&L. Frequently folks say, "You know, it's hard for me to parse apart where your investment dollars are versus sort of the OpEx dollars required to run the business." And although we don't break that apart, I'm sympathetic to that challenge because a lot of our investment comes in human capital. And so it sits on that SG&A line in the P&L. And what I think is compelling about the go forward is we've built out that physical retail team, right? We've built out that B2B team. We've built out that specialty retail brands team. And so much of the overhead costs for that we are bearing today, well, the growth drivers remain in those initiatives, and so we should get some leverage on that over time, which drives us to that north of 10% Adjusted EBITDA. I think the only thing I would add to what Kate mentioned is we talked about an $800 billion total addressable market. We cut that up in a few different ways that were newer, and we also took folks on a kind of a customer journey for the first part of the day, where we tried to remind everybody there's unique challenges in the category that we serve, and we think we're uniquely positioned to address those across marketing, merchandising, pricing, et cetera, all underpinned by technology. So encourage you to check it out and happy to answer follow-ups as well. And we're definitely going to talk about some of the initiatives in greater detail as well. But stepping back for a moment, the home goods category has obviously gone through significant periods of upward and also downward volatility since the start of COVID. Can you just walk us through how the market evolved over the recent years, how Wayfair navigated that volatility, and where do we sit today in terms of the overall demand environment? ... Yeah. So maybe we start from sort of the 2020 time period to present. Obviously, 2020, you know, unprecedented demand in the category. Certainly, as an online player, we were uniquely positioned to capture that. And then, as we moved into 2021 and 2022, the category suffered from some challenges. So part of it was from a logistics and supply perspective, like so much of the economy, you know, our category struggled with supply availability. We struggled with, you know, dramatically increasing logistics costs. Obviously, most of our product comes out of Asia, and so container rates had a significant influence on our prices and on inflation. For Wayfair, specifically, you know, during sort of the latter half of 2021 and 2022, we were not positioned well. We had rising costs due to the aforementioned container rates and inflationary cost pressures broadly in the market. We had low availability, so there wasn't... You know, we don't take inventory, so we weren't sitting on any inventory that was sitting here. And what we did have was taking longer to get to the end customer because of challenges in the supply chain more broadly. So across, again, those core metrics, price, availability, and speed, we were not particularly well-positioned. What you've now seen in the category is our suppliers coming back and actually, you know, being in a position to excess supply to, you know, trying to manage that to sort of normalize supply-demand dynamics. And we're able to take advantage of that. So we're able to work with our suppliers to take out some of that inflationary pricing. We've mentioned we're seeing that in our AOVs coming down, and order volume is actually corresponding, so we're seeing order volume grow up, or, or go up, rather. And you're seeing a, you know, stabilization there. The category as a whole remains, you know, soft. We think we saw softness in the category really starting in early 2022. And the data that we look at, which we've shared, quite a bit on our calls, we look at, much of the credit card data that many of you probably look at. I'm sure it's a category down anywhere from, you know, low teens to mid-teens. And so the category, you know, has remained somewhat under pressure. We're very pleased with our share gain within that. Great. So in that context, obviously, another important dynamic in, like, the broader environment has been, like, the higher levels of promotions and the elevated competitive intensity- Yeah. in the category, both offline and also online. Can you maybe talk about how higher promotions have impacted the company's financial model and business decisions, and how would you frame the current competitive landscape? Yeah. So we think about promotions actually as a marketing lever, right? It is a way to get the customer in the door and get her excited about the category during a time period where she may be spending in other areas and wasn't as interested and engaged. And we really need that hook, or we need that hook to get her to come in. Interestingly, actually, most of the product that's sold during a promotional event is not actually product that's being promoted. So similar to a, you know, landed physical retailer, the end cap is successful to bring you into the aisle, but you're actually purchasing within the aisle. We see that same dynamic, and we spoke about that a little bit on our Q2 call. So we are seeing promotions be successful and an important tool right now in getting her to come in. In terms of impacting our model, you've actually seen our gross margins grow during this time period, and it's one of the unique things about our business. We're not sitting on inventory that we're discounting, right? The supplier may choose to lower price or discount to move through some inventory, but we're passing that on to the customer, and we're maintaining our gross margins as a result, because it's not us dropping the price. The thing that we're sort of monitoring going forward, and what we're mindful of, is we want to balance out the customer, you know, needing to get her attention right now, with not training her to be only shopping on promotions. So that's something we're sort of constantly tweaking, and we'll A/B test different types of promotions to see what works and, you know, figure out how we want to modify our promotion calendar going forward. You already touched on it earlier, but one question that obviously remains top of mind for a lot of investors is around the health of your supplier base or supplier margins, just given the volatility we've seen in input costs over the past, you know, 24 months. And on the other side, you know, how that could potentially impact consumer prices going forward. Can you maybe talk about what you're hearing from your supplier base and share your view on, like, the sustainability of the lower consumer prices on the platform? Yeah, I'll start, and then you should definitely jump into. This is something we both look at a lot. So, a few thoughts there. Just in terms of what's happening on prices, our products have three components to price. It's the actual raw material, the labor, and then the freight cost of getting that product to the U.S., which is a significant portion, you know, of our products, given that they're large, big, and bulky. If you look at all those things, there's certainly been inflation across all of those fronts. Inflation has come down, you know, some in raw materials. Labor is a little bit stickier, although we're starting to see some movement there, but it's a little bit stickier. Freight is probably the place where we've seen it come back the most dramatically. You know, container rates spiked up to 10x what they were pre the pandemic, and now have come back down, right? So, what we're really working with our suppliers on, and what our suppliers are aggressively working on, is removing that inflationary increase out of their prices. And you see that in our AOV. So if you look at our AOV sort of pre the pandemic to, you know, so 2019, pick a stable 2019 year, and then look at AOVs in 2022, which is really the peak of that inflationary pricing, is up 20% year-over-year, you know, compounding obviously more than that. So very significant inflation in our category that is now coming back out quite rapidly, which is contributing to that AOV decline. That's a dynamic that we're actually comfortable with and we like. We're actually the AOVs are still above, you know, where they were pre the pandemic. We think there is a little bit more price to come out. As suppliers are bringing in new products, they're pricing to that, you know, future price point, and they're telling us they're starting to clean out some of the landed inventory, which may have been at that higher price point. And they're doing some of that by moving out of that higher cost basis by moving that down to that lower price point. The dynamics between AOVs and orders, generally, we'd rather see growth through order volume, right? As those become customers who then come back and repeat purchase with us. I think I would just underscore the point that Kate made, where the input costs for the suppliers are diminishing in such a way that the wholesale cost they charge to us may not have to move significantly from where it is now, so that the componentry of this core recipe that we always discuss, availability, speed, and price, can remain very competitive on the pricing dimension, specifically. That's. I think that's a core point. I think many folks assume that maybe the prices dropped because suppliers had a ton of inventory that they were trying to burn through. They dropped because the actual cost to make that good and get that good to the U.S. has changed. That's very helpful, actually. So looking longer term, you recently shared at the Analyst Day, your expectation that Wayfair will return to double-digit growth, over time. First, can you talk about the path towards revenue acceleration in terms of the elements that are inside versus outside your control? And then second, can you frame some factors that give you confidence in your ability to continue to gain market share? Yeah. So the way that we mapped this out in the Investor Day is, you know, there's the, you know, what you think the category returns to, and that certainly is outside of our control. Prior to the pandemic, this category is a 3%-4% ish grower. We tend to not be actually as correlated to the housing market as folks often think we are. Our average AOV is around $300. No one's doing their whole house. But you can make your own estimates on category growth and where that returns. So as a category, sort of a steady GDP-ish grower. Then you have the shift from offline to online. So that's the next component. You know, that's both in and out of our control. We're driving some of that, obviously. If you look at the trend line there, certainly that spiked up in 2020 and then pulled back, you know, in 2021. But if you were to draw from, say, 2017, 2018, 2019 to where it is now in 2023, it's been a pretty consistent trend, and we believe we're actually back on trend line there, and that's moving, you know, as it should. So then it comes down to our own share gain within the category and how we accelerate that share gain. And, you know, in terms of what gives us conviction, again, it really goes back to where we are positioned in that core recipe and across price, availability, and speed. We've been in the business over 20 years. We know what resonates with the customer. We know how we have to be positioned to get her attention and to get her to come back and continue shopping with us. As we look at our opportunity there, we want to be well-positioned across each of those areas. That was, you know, similar to how we were positioned pre the pandemic and our effectiveness there. And then we want to expand our share of wallet with her. So our customer shops with us on average two times a year. She's in the category about eight times a year. So we think there's significant opportunity to grow what she's buying with us. That comes through category expansion and development of newer categories for us. So you know, how effective are we in large appliances, things like that. It also comes through targeting different sectors of the market, like the high-end segment, which we now target with Perigold. That brand's about five years old for us. You know, we've in the past spoken about, a very nice growth trajectory there. And it comes with accessing different customer types. So through our B2B segment, you know, getting more of, the sort of B2B and trade customer, as well as expanding into other sectors within that, like hospitality or, education. And so it's across all of those areas, that if we have the core recipe working, we can leverage our brand, we can leverage our logistics infrastructure, we leverage our supplier relationships, and we are attacking the customer from many different verticals, helping to grow that share of wallet over time. James, I don't know if you'd have anything to add to- I think just, again, that last point is critical, right? A lot of the ways in which we will grow physical retail, professional, specialty, and luxury are inherently based on the same advantages that we enjoy in the core Wayfair.com B2C business. Kate just talked about it, technology, supplier relationships, branding, marketing, all of those elements. So a lot of that core differentiation is applicable to the growth drivers. Great! Maybe let's pivot to your international strategy before actually coming back to discuss, you know, professional, your omnichannel strategy, and so on, and so on. So you recently talked about how you're taking a more focused approach in international. Can you help us frame how investors should think about the balance of growth versus investment in international from here, and also, you know, if you can double-click on your competitive positioning in markets outside the U.S.? Yeah, so the international segment for us is Canada, the UK, and Germany. And we actually spoke about our Canada business on our Q1 call. That business has been growing nicely or, you know, had headed sort of been growing nicely for us. And we believe we have a shared leadership position in the Canada market. And then the UK and Germany, obviously, there's been much more macro complexity in those markets. And we've, you know, seen some stability in the UK in particular, and we like our positioning there. In Germany, we're ensuring that price, availability, and speed, that those core metrics are getting into a position that we like there, so we can be well-positioned. What we're excited about there, so that's sort of current state of play. What we're excited about in the international segment is when we look at that $800 billion TAM that James mentioned, about half of that sits across those international markets that we're in today. And we don't see any reason why the technology that we've built in the U.S. and the knowledge that we've built can't be leveraged to win and play and compete in those markets. And as we think about building the business, we want to address that entire $800 billion TAM. We believe we have a right to win across the entirety of that TAM, and the international component, you know, is certainly a key element of that. So as we look at it, it may take, you know, some time to get to, you know, the sort of, ideal operating place in those markets, but we don't see anything that would impede that. The other thing I think is important to note is, as we've gone through the cost takeouts over the last year, that has been impacting us across the board. So it's not as if we carved out the international segment and said, "You know, we're actually gonna protect that. We're not taking costs out there." We've actually taken out costs everywhere. You can see that we do break out the international segment on the P&L, and you can see those cost takeouts that have flown through there in terms of the operating losses that are being significantly mitigated. That's really been, you know, driven by the actions that we took across the board on labor costs and, you know, ongoing improvements in logistics costs. Great. So another key initiative is around your large presence in the B2B market with Wayfair Professional. You briefly talked about it earlier. Can you maybe frame the opportunity for growth for us in the B2B category and remind the audience of how the customer profile differs versus your, you know, bigger B2C business? Yeah. So, the B2B business is really an example of us being able to take advantage of the infrastructure that we've already built and, you know, tailor that in a way for that customer. We actually got into the business because we started noticing that there were some customers that were purchasing just a volume of lighting, for example, or end tables that you couldn't be purchasing for one home. And so we started to uncover this is a pretty natural opportunity for us. We then create a gated site. So our B2B business does offer differential pricing for folks that are qualified. So, you know, if you have your tax-appropriate tax ID number, you can get that differential pricing. And that comes through, you know, through our gated site. But it leverages the same supplier base, it leverages the same logistics infrastructure. And in many respects, it's actually leveraging the Wayfair brand because we go to market in that category as the Wayfair brand. So, we're using those three key pieces to get to a customer in a more targeted way than we may have been before. He or she was sort of accidentally coming in before, and now we can reach them more directly. Our, you know, sort of average customer there has just much higher dollar size purchasing. They have different needs. You know, one thing I spoke about with a group this morning, if you are designing someone's home, and so you're a designer, a partner of ours, you typically want your product for that home to all arrive at once. And so that's consolidated delivery. We and many online retailers are not set up originally to do that. We've now built out that capability. We're testing it, so we can offer that to our, you know, to our partners in our B2B space, so they can have a better experience for their end user. If you are a hospitality player, you want product that's commercial grade, that's specifically, you know, designed for high usage and high traffic areas. Our sales folks can work with you on those elements. So there's certainly unique needs for those customers, but we're able to leverage the platform, to get to that, that space. And we're, you know, very excited about the opportunity to push deeper into some of the newer verticals there. Designer and contractor has been an area we've been focusing for a little bit of time now, but, you know, hospitality, healthcare, education, those are all newer areas for us where we're, you know, focused on growing. At the same time, you're also increasingly expanding your omni-channel strategy with a number of stores already open, and your first Wayfair flagship store is set to open in the spring of 2024? Right. Yes. So, can you share more about, you know, your strategy here and maybe help investors understand how you're thinking about the financial returns of those investments? Yeah. So a number sounds, like, very high. So let me just qualify. We have five very small stores open, the first of which opened last summer. So we've only had one store open for a year, the others all opened throughout the year. And those are in our specialty retail brands. So we've opened AllModern and Joss & Main. These are small format stores, about 10,000 sq ft. And the reason we started with that is because before we opened that first Wayfair.com store, we really wanted to test out the technology and the approach in these smaller format stores and, you know, iterate and learn from them. You're absolutely right. The first store opens. The Wayfair.com store first opens in the spring of 2024, outside of Chicago in Wilmette, Illinois, and that's under construction right now. If you drive down that highway, you can see all the signage. What we're excited about in terms of physical retail is, as you think about, let's just focus for a minute on this $400 billion TAM in the U.S. If you look at other categories, they usually asymptote at about 50% offline and online, categories that went online faster than ours. Who knows if we'll hit exactly that point? But either way, let's say a sizable chunk of this category will remain offline. And again, to the points around B2B and international, we believe we can leverage our brand, our logistics infrastructure, and our supplier relationships to effectively play in that market, and meet the customer on some of her purchase experiences that we don't typically get. And of course, you know, active customers that may not have moved online yet. So that's why we believe we should go into and how we believe we have a right to win there. In terms of how we think about the economics, you know, we're thinking about four- wall economics the same way a landed retailer would. And actually, you know, you asked about my background. Prior to this, I was a private equity investor in retail, and we are looking at that in the same way that any person who's just, you know, offline would look at that. That said, there is of course a branded marketing halo effect from these stores. I think Warby Parker has actually spoken about that quite thoughtfully and the benefit that they've seen. And we've said we are starting to see some of that from our initial stores that have opened up in the MSAs that they're around. But we want those stores to be sustainable in their own right, so even before you get that halo piece. You also previously talked about how you're rapidly scaling your supplier advertising business. I think you mentioned that you expected to grow towards, you know, 3%-4% of revenue over time. Can you maybe talk about the offering and some of the dynamics you're seeing around supply versus demand that are playing out into your confidence to achieve those revenue targets? Yeah. So, all of that is accurate. It's about 1% of sales today. You know, 3%-4%, we put us below where actually some of the major players are in the space today. Mm-hmm. I think that reflects a little bit some of the uniqueness of our category. You know, certainly this is an unbranded category, so the way that you might, for many respects, unbranded, there are some elements that are branded, like large appliances and small electrics. But the way the customer engages with the category, it's quite important for us that we not impact the customer experience in any sort of negative way, and that we maintain our conversion rates, even while having, say, sponsored SKUs, which is one of our advertising products. So that's the sort of overarching philosophy on it. We don't wanna impact the customer experience. As you get into what the products look like, so sponsored SKUs, there are branded shops. So in places where we do have brands like appliances, you can imagine a GE-branded shop. And then there's complementary brands that, you know, wanna access our customer, but may not be selling on our site. Think about, you know, Sherwin-Williams or somebody of that ilk. So there's a number of different ways that we can go after the sector. Our focus in the past few years has really been on building the technology. So we actually first need to free up inventory in the customer experience and really test and iterate on that technology, make sure that the process works well for the suppliers, that they could see that clear, you know, the ROAS that they're targeting in that space, and they can see that quite clearly. We're now at a point where that's been established in the way that we want. Our supplier, obviously, over the last few years, while supply was, you know, constrained, was really not doing a ton of advertising in the space. You don't need to advertise when the demand is massively high and the supply is low. And now we're seeing our suppliers, you know, comfort around that growing again. And one of the things we pride ourselves on, actually, is our deep relationship with our suppliers. And so we are working with our suppliers to help them see when does it make sense, you know, to invest in advertising, when does it make sense to invest in price, and how they balance those pieces. Right. Let's pivot to margins for the last few minutes here. So you turn to a positive Adjusted EBITDA margin in Q2. You're now expecting margins to expand towards the mid-single digits, and to continue to build towards the, the 10%+, target you, you have laid out at the, analyst or investor day. Can you remind the audience of the key building blocks that go into the progression towards those margin targets and the factors, maybe again, that are more inside versus outside your control? Yeah, I mean, I think most of it is inside our control. The first step we said is getting to those sustained mid-single-digit margins. Mm-hmm. And that's largely about completing the flow through of a number of the cost savings initiatives that we started on in the last 12 months, seeing that really get all the way captured and flow through the P&L. You know, we hit the 4% in Q2, but we obviously guided, you know, a tick lower than that for Q3, and are making. I think we used the language just around the corner on getting to those sustained mid-single-digit margins. So that's, that's sort of, you know, where we're at right now, is focused on that point. The second piece beyond that, of course, would be how do you get from there to those, you know, north of 10% Adjusted EBITDA margins? The first chunk is really on that gross margin line, and that's getting from, you know, 30-ish to mid-30s on the gross margin line. The components of that are growth in supplier advertising that we just talked about, ongoing efficiency in our logistics infrastructure. Mm-hmm. You've seen us obviously take out quite a bit of cost there over the last several quarters. And, you know, I think we've proven our ability to continue to iterate and effectively manage that space. One thing we've spoken about before is we feel good in the U.S. in particular, about the logistics footprint that we have, and so therefore, the ability to leverage that footprint as we continue to grow. And then a small component is merchandising and mix. And so continued advantages there, particularly as some of our higher margin brands mix in and as, you know, we get ongoing obviously pricing power. So that gets you to that sort of mid-30s gross margin, and that's a large chunk of the walk to the north of 10% adjusted EBITDA margins. The other two components are our marketing, our own marketing costs. Mm-hmm. So not the supplier advertising, but our marketing costs. And then the leverage on the SG&A line. And I think the key thing to understand on that leverage on the SG&A line that we've spoken about is that our investments today are in these growth drivers. Mm-hmm. So as you think about, you know, those growth drivers panning out, you will get leverage on that line because we don't have to add significant headcount to be able to meet the needs of those growth drivers. I think that's an important piece to, to remember and capture. We're already invested in this today. We're already building these businesses, and the speed will determine, you know, how quickly that line leverages, so how much that top line, you know, how fast that rematerializes. But you should see that improvement there as you get that OpEx leverage. I think the really, you know, sort of big external factor is, you know, how does the macro evolve, certainly, and if you think about the walk from mid-single digits to north of 10% Adjusted EBITDA, we said you should see a steady improvement there, but the pace of that will depend on the top line, Mm-hmm. and how, you know, fast that top line grows. To dive a little deeper on the cost reduction initiatives, you've, you know, announced, over the course of the past couple of, like, months, how do you feel about, like, the organization being positioned today from an efficiency standpoint? And can you help investors think about, you know, some of the cost initiatives that are still ongoing today? Yeah. So of that original $1.4 billion that we outlined, $750 million was labor cost, but that's total, so that included the stock-based compensation expense. Mm-hmm. A little more than $500 million at that time we qualified as the operating cost efficiencies in the logistics line. And then, the remainder were cost avoidance measures and some efficiency on marketing and some efficiency on CapEx. If you look at the biggest component, that labor piece, that was largely achieved through the two RIFs that we've already executed on. And so you're seeing most of that initial piece flow through the P&L at this point. The operating cost or the sort of logistics infrastructure piece is the next biggest bucket. Mm-hmm. And that's the one where we've been executing on that over the last few quarters. We said that that's actually progressing quite nicely. In fact, we hit that a little faster in some areas than we intended to in the second quarter, which is why that gross margin popped up a little bit. So there's some more to go there, but we're achieving that, you know, quite nicely. And then, part of what you're seeing in terms of, you know, CapEx efficiency and marketing spend efficiency is some of the originally planned for costs coming out there. We said, for example, in the marketing spend, that we were gonna spend less this year on our experimental parts of marketing, so where we're testing out new channels. We were actually tighter on that this year. So the original plan is going quite well. Mm-hmm. We did also say that we're continuing to manage down that SG&A line- Yeah. and, you know, continuing to get that tighter, you know, in small increments each quarter. So candidly, our cost work is never going to be done. And I think it's actually very important for us as a mass market retailer to have an ongoing cost efficiency and mindset. And so we'll start work on, you know, what are the next layers of cost to manage as well. Last question. So as the business moves towards free cash flow break even, how should investors think about broader capital allocation, priorities from here? You're gonna give me one minute to talk about capital structure? Yes. You know, we did touch on this a bit in the Investor Day. Obviously, in the past, we took advantage of the, you know, convertible debt market, which for a pre-profit, you know, retailer at that time made sense. As we mature and as our P&L matures, as we generate free cash flow, we think that there are other avenues available to us, to manage our capital structure. We're primarily focused on is the $750 million remaining in that 2025 convert. We obviously managed some of that down through some of the liability management transactions before. So, this is less about adding cash to the balance sheet, it's more about managing that. And again, you know, we think other opportunities become available given our, the strength of the P&L. Perfect timing. I know. I know. 10 seconds left. Thank you very much. Please, help me. Thank you. I appreciate you being here.