Great. My name is Adam Hotchkiss, and I cover the emerging software space here at Goldman Sachs. We're really privileged and excited to have Tien Tzuo, CEO and founder of Zuora, as well as Todd McElhatton, CFO, with us today. Thanks so much for being here. Of course. at the Goldman Sachs Communacopia Conference. Great. Awesome. So, Tien, you founded this company over fifteen years ago. Mm-hmm. And so for those in the audience who are less familiar with the role that Zuora plays for businesses in the office of the CFO, would you just give us a brief overview of the business, your time at the company, and then the value that you bring your customers at a high level? Sure. So you can see all around us there's an explosion of what I'll call monetization models or business models, right? And it's all from the shift away from selling products to selling services. You all know this. You cover software, right? 15, 20 years ago, software was sold as a CD on a one-off transaction, and I was at Salesforce, you know, and all the companies here are SaaS companies now, right? So software has gone through this transformation to be as a service. And so this has created an explosion of how do I price for this? Do I price per user, per gigabyte? Do I do a consumption, right, usage-based models? And that has fundamentally transformed the office of the CFO, where the old world, you're just processing transactions, you're looking at efficiencies, right? Now, you talk to the CFOs, they've got to worry about pricing models, they've got to worry about business models, they have to worry about, you know, concepts like CAC and MRR and churn and DBRR. And so what we do is we really create a modern quote-to-cash application stack, if you will. But it's really fine-tuned for these new business models, right? We handle billing, we handle revenue recognition, we handle payments, we handle collections. We do this for companies ranging from Salesforce to Zoom to, let's say, the New York Times or Camper or General Motors or Caterpillar. What we really allow CFOs to do is to drive their business forward and give them the agility they need, so that their people can be adaptive, right, to whatever the business wants to do and however they want to price and package. That's great. Really, really helpful. Todd, before digging in on the products and the business more broadly, I just wanted to give you the opportunity to run through the most recent quarter. Multi-product deals were incredibly strong. You had strong traction at the large end of the enterprise, and I think you also mentioned strategic monetization of payment processors to offset some of the one-off churn I think you talked about earlier in the year. So maybe just level set for the investor base, what should we be focusing on there? This last quarter, I think, really showed the optionality that we have here at Zuora. We kind of gave a throwaway comment about payments. Early days there, but at the end of the day, we process $50 billion worth of payments through our system. There's an opportunity for us over time to monetize that and collect on some of that. And so we wanted to kind of bring up, that's just one of the things that we have in place. But as you said, for the quarter, felt pretty good about the challenging environment still, but we saw a nice expansion, companies like Zillow, companies like Aura, expanding on their Zuora investments. And then you saw new logos. Canva, I think, a great example of a company that is absolutely getting ready to go public, seeing a lot of growth, needs scale, and competitive tender process. Looked around, obviously chose Zuora because of its differentiation and what it could do for them, and, you know, futurize them for what their business model is. So I think in this environment, we feel like we're doing what we need to do, and, we're all right. All right. Tien, I think over the past decade, we've seen the introduction of increasingly complex business models. I think you mentioned it, and when you started this business, it was more geared towards the subscription economy. Not to say you've moved away from that, but you've mentioned this phrase now, total monetization. What does that mean? Why now on bringing up that phrase, and how does this impact the business? If you know a little bit about us, you know, we've been evangelizing this concept called the subscription economy. We wrote this book, it's become a best-selling book called Subscribed, to really help all companies think through, Okay, what, what does this all mean, right? How do I shift from being a manufacturing company or selling units of newspapers, rooms, widgets, whatever it happens to be, and to be-- to operate more like a Salesforce, more like a Zoom, more like, say, an MCI, an AT&T or Verizon, you know, these modern phone companies. And, you know, what we've seen really is the industry has really matured, right? When we started, there was no such thing as Netflix, there was no such thing as... Well, Netflix was sending out DVDs, right? There was no streaming service. Spotify, right, wasn't around yet. Peloton wasn't around yet, but now that this whole concept of subscriptions has been more mature, when we talk to our customers, they're saying, "Look, how do we continue to lead, right? We knew how to transform, but how do we continue to grow? How do we continue to sustain our growth?" and this concept of a total monetization is to say, "Look, now that you look at your business through the lens of the customer, you got to realize that your customers want different things, right? They wanna buy, they wanna, you know, they wanna consume in different ways." So whether it's Salesforce saying, "Hey, we're gonna switch to an AI consumption-based model more and more, and that is the repercussions of the business," or whether it's the New York Times saying, "Look, we used to have a $20 a month thing, but now we have a really, really broad product portfolio. We can get people in to engage with games, with recipes, with sports, with news, and over time, we're gonna take them on a journey, hopefully to buy that digital all-access pass, right? But we wanna unbundle our existing offerings and then rebundle it in different ways that matches the customer's needs." Those are all techniques called Total Monetization. So we look at it and say, what we do is only becoming more relevant in the marketplace as the subscription economy matures, and as these companies are looking for more complex and newer ways to basically continue to grow and monetize the opportunities that they have. And so we're pretty, we feel pretty good about the position that we're in. We feel pretty good that the best companies in the world continue to come to us... and that the trends that really have been our tailwinds are gonna still continue to exist for many years, if not decades to come. That's great. It's a good sort of segue into the overall buying environment. So how would you, Tien, characterize the buying environment for Zuora's products today? What are some of the drivers of decelerating growth in the business? And then, you know, when you think about that within the context of some of these larger multi-product deals, you know, how do you see those two things balancing out over the course of the year, maybe next 12 to 18 months? We certainly, you know, there's no surprise that there's a general slowdown in technology spending that we're all experiencing, and it's from, you know, these things are usually structural, right? There's probably overspending at some point in the last few years, and you gotta get through that to get to the other side. There's a bit of a deflationary environment where tech companies were sort of, you know, buying tech from each other, and as they continue to shrink, the whole thing shrinks to a more normalized situation. We're managing through that just like anybody else. If we sort of pierce through that and say, "Let's look two, three, five, ten years out," our companies are gonna continue to move to a subscription model. AI is only gonna force them to do more of these consumption-based billing models, if you will. We talked about a customer, a contact center, a company, a couple quarters ago. They were using us for one part of our application suite, which is revenue recognition, and they said, "Look, you know, now that everything in the contact center is gonna be more about AI-driven, usage vision-driven, transaction-driven, we now have to implement your billing system in conjunction with our revenue system." So we look at it and we say, look, we had to navigate the short term, technology, you know, spending, you know, air pocket, if you will, but we're just continuing to focus on, "Hey, through this period, how do we continue to build the best product? How do we continue to find the best customers and recognize that the overall trend from a multi-year perspective will continue to carry us forward. Okay, that makes sense. And then, Todd, maybe you could chime in here as well, but just around the tech end market, how much of this is, you know, the software, the B2B, SaaS, and B2C end markets have slowed over the last couple of years, and, you know, how much is your business reliant on that over the next year or so? It's important to keep in mind that 50% of our customers are in the tech space. And we've seen over, what, the last six-to-eight quarters, that the growth rate in them has cut in half. The good news is, they're still growing, but it's 50% of what it was, so that obviously is a headwind for us. Also, we get about a third of our revenue comes from volume. So as companies grow and they put more volume through our platform, that's an opportunity for us to monetize. So those are both headwinds for us. The other thing that we've seen as a headwind is, folks are a bit cautious in this environment. You know, before they spend something incrementally, before they put in a new order-to-revenue system, there's just extra sets of diligence going on, and you're seeing, you know, not the same volume that we saw, again, six to eight quarters ago. That being said, at some point in time, the infrastructure they have just isn't gonna work, and we're gonna be there, and we'll be ready to capture it. But right now, we're controlling what we can control, and we feel like we're doing a pretty good job with that. Got it. Really helpful. Tien, let's talk a little bit about your product portfolio, your sales cycles, and the buyer profile of your customers. Just help us understand your most common landing products, and then what the typical upsell journey of a customer looks like. We're probably. You know, from the outside, you look at us, you probably see us as a billing company. And the truth is, if you look at the last five years, we've evolved far, far beyond just billing. And, you know, we made a strategic acquisition, a product company called Leeyo, which had the market-leading revenue recognition product, and we still have not seen a second product emerge in the marketplace to really compete with that offering. And so today, you know, that company was probably less than $10 million when we acquired it, and I think in one of our recent calls, we said it's starting to approach, you know, $100 million. And so we've seen significant growth from that. What we see is depth, and then we've added payments to the product. You've seen us do a few acquisitions to continue to expand. A broad product portfolio is necessary for these companies to do total monetization. That being said, we said: Look, you know, there are different buyers for these different parts of our product portfolio. And so one of the key parts of our strategy is to say, "Hey, let's have a modular approach." And yes, if a customer's out there wanting to buy the whole thing, they can. But if we can get started with, let's say, you know, you're a head of revenue, and you don't. You know, you get the subscription economy, but you just have a revenue recognition problem. You're trying to close the books faster, right? You're trying to get the numbers faster. You're trying to avoid any new material weakness that might show up in your reports. We can get started there. You're an IoT company, and you're saying, "Look, I've got a new connected service, and I'm just trying to monetize it, you know, for my first $10 million." We can get you up and running really, really quick. You're a publisher, and you're saying, "Look, we have this paywall, but more and more, we want the smart paywall. We want a dynamic paywall," right? Not something, you know, simple, where, hey, the fifth article in a month, we're gonna charge you. We want something a little bit more dynamic, like what The New York Times does, what The Economist does, what the FT does, or, you know, all our customers. We can get started there. And then recognize that that then allows us to grab you as a customer, land with a really, really sticky product, but because of the breadth of our product portfolio, you know, we can take our customers on a journey and have an upsell path to continue to add more value and grow within those customers. And that's been a really, really important part, to land with different parts of the company, engineering, IT, finance, you know, the digital team, whatever it happens to be, and then really grow with the customer. That's a great segue, Tien, into just your sales motion, right? As you've evolved from a billing company to assets across quote to cash, how has that impacted your sales motion? Look, the big picture when you, you know, grow these companies is always. We're not a young company, right? We've been doing this, like you said, for more than 15 years. Yep. We've had a lot of good success. But you're so focused on acquiring new customers in the first phases of the company. The big picture for us is not that. You know, the best way to think about us is these telco billing companies out there. And you know, it's a double-edged sword, I understand, but just to show you the potential, you look at these billers, whether it's AT&T, whether it's Comcast, whether it's T-Mobile. These companies give anywhere from $250 million to $1.5 billion a year to their billing company. And they are a customer for life to these telco billing companies out there. These are public companies. You can go and take a look at them. That's our potential. When we grab a Zoom, when we grab a Salesforce, when we grab a New York Times, when we grab a Caterpillar, we're saying: How can we have this customer, not for five years, but for thirty years? And how can we continue to grow with them, and how can we continue to support their business as it evolves? So what you see us doing more and more of is to say... Look, today, you know, upwards of 60%-80% of our business is coming from install base, our growth, and that's not abnormal, right? For technology companies in this environment, it's easier to grow within your customer base. But our ability to do that, I would say, far outstrips the average SaaS company. We're working with big companies. They have, you know, big wallets. We're in their mission-critical part of their system, and what we need to do is to continue to evolve our product portfolio and our sales teams to really know how to engage with customers at that scale, unlock that broader, longer-term opportunity. Okay, great. And then, you know, when you talk about, I think in recent quarters, you've talked about landing smaller and faster, and I know that doesn't necessarily mean you're moving down market, so maybe explain that to folks in the audience. That's right. Sometimes, you know, we're doing smaller deals, but we're not moving down market. We believe that the sweet spot of this marketplace are big companies, right? Subscription business models are about scale. Whoever has the most number of customers, whoever has the most number of relationships, ultimately, you know, they've got lots of things they can do. They can do acquisitions, they can do innovations, they can find so many places to grow. Just look at the companies that you're covering here at this conference, right? And you see the effect of scale. So we chose to focus on the top end of the market, companies that are a billion dollars and up, or companies that are, you know, well venture-backed, that will easily grow to be billion-dollar companies or have an opportunity to be, you know, the unicorns, if you will. And that's been a great market for us. And what we're seeing is that part of the market is the resilient part of the market. Got it. That's helpful. Todd, when you think about the growth algorithm for Zuora, and I know team sort of alluded to the portion of growth that's existing versus new logos, but what does that—what should that look like on a normalized basis, and where is that today? So we have an amazing customer base. Think about customers like Philips. Think about. You're looking at Financial Times, Braze, Toast, companies in a variety of different industries and different geographies where we're getting in early, and as they're growing, we have a huge opportunity in front of us to monetize those businesses. We estimate we've got at least $600 million worth of opportunity in the installed base. So we have a lot of runway in front of us for future growth, just out of the installed base, and that doesn't count any acquisitions that we've done or new innovations that come out of the pipeline from our R&D team. Okay, great. And then on margins, Todd, clearly, this has been a huge area of focus and a huge area of improvement for you, both on the operating and the free cash flow side of things. So maybe just walk us through what that margin expansion journey has looked like from the beginning and, you know, how much left there is to go? We are a fundamentally strong company. One of the things that impressed me when I joined Zuora is high, high gross margin in the subscription business. So, you know, 82% subscription gross margin. We're a mission-critical business, and we're really sticky. So that gives me some levers that you're seeing some other companies in the SaaS space don't have, and so I've been really able to go through and adjust those. If we go through, in particular, product, we've gotten some areas more efficient, but we're certainly not skimping there. We just saw recently that Gartner, MGI, and Ventana all named us as a leading vendor in the space. So we're gonna continue to make sure we make the right investments in the portfolio and maintain that leadership position, but on go-to-market, we're getting a lot more disciplined and a lot more thoughtful. Understanding when I put $1 million in marketing, where does that go from a standpoint of generating leads? What does that look like for those leads getting qualified? What ultimately turns into bookings and goes to the top line? Now, right now, in this environment, I'm controlling what I can control. I'm not sure that it makes a lot of sense to continue to feed more into that go-to-market engine. However, when we see the environment changes, I'm absolutely going to be ready to get there. And the last thing that I would say is, we're controlling what we can control in this environment. We said we would exit this year at the Rule of 30. We actually did that a few quarters early. We'll certainly exit the year there. Might have little ups and downs in the quarters. We got some seasonality on overall spend. But people should not think of that as being our destination. There's no reason that we don't have the ability to get to a 30%-plus operating margin business. Got it. And Todd, what are some of the indicators you look for when... You talked about being sort of nimble around the expense structure. What are some of the indicators you look for on the reinvestment side to maybe lean in a little bit more versus a little bit less? One of the things that is also very remarkable about Zuora is the fact that we see what's happening with a thousand customers. So we have a really good insight of what's happening in their business on a day-to-day basis. So we'll certainly have some really good leading indicators that maybe others won't. We also have a really robust partner network. And so as we see what's happening with those partners, those are both really good indications for us that says, "All right, let's go ahead and accelerate our investments and go to market. Okay, great. Zuora's platform has gotten some recognition from Gartner, MGI, ISG. I think Todd just mentioned that, but I know we, as analysts and investors, see companies talk about this from time to time, and sometimes it's a little bit opaque as to what that means. What does it mean for your business? Look, I mean, when I started this product years ago, I mean, and this company, I knew billing was hard, right? We had built our billing system at Salesforce, and we hated it, and it never did what we wanted it to do, and it was always holding the company back. This is not true for Salesforce, it's true for any company that has its own billing system. Even then, I think I underestimated how big the product footprint was and how complex it was, and so it was a journey to do so. As a result, right, that is our competitive mode. From the outside, I can see, like, well, you know, unless you go deep into the product and the needs, well, why is this thing different, right? Why can't a well-funded startup go and replicate what you have or why can't an SAP or an Oracle or Salesforce, right? You know, they've got engineers, they understand software, why can't they do what they do? And, you know, we have the internal confidence, having gone through it, to know that that's not easy, and we don't believe it can be replicated very easily. But it's always important to get the validation. And so, you know, I think what happened was, you know, maybe this pandemic-related, right? But we probably took our eye off the ball in terms of continuing to educate the analyst community, and our product portfolio had grown quite a bit. So starting two years ago, we really said: Look, we need to go back and reset and educate them on all the capabilities that we have. It's really, really good to see, whether it's Gartner, whether it's MGI, whether it's Ventana, you know, whether it's Forrester coming back and saying, "Hey, look, you guys clearly have the best product. Got it. I think we'd also expect to see that have a top-of-the-funnel impact as people are out, putting out tenders, looking for their order to revenue systems, and, you know, you see that we're the clear leader. That's gonna give us the right to have an at-bat and a lot more opportunities. Is that something you're seeing already, or is that sort of the expectation on the go forward? I think it's early days, but- Okay. Yeah I mean, you're certainly, that recognition is certainly super helpful. Okay, great. Tien, I wanted to turn to AI. Obviously, the topic of choice here at this conference, no surprise. What is your approach to AI? What does your AI product pipeline look like? And then, what is your approach to monetizing these products? Maybe, Todd, you can chime in on that one. Look, look, like, I think it's like any other software company. We have massive uses of AI, right? AI is helping us increase our productivity. It's somewhere in the margin expansion story. We have used AI on an operational basis as well, to reduce our support costs and other costs. You know, we have our copilot as well, right? To kind of guide customers on how to navigate, you know, whether it's sending out a bill, whether it's refunding a customer. But what gets us really excited about AI, though, is we're seeing every technology company. Not just technology companies, the manufacturing companies out there that have IoT-connected services. And in the last earnings call, we talked about a logistics company, and monetizing, you know, API access to tracking information and other things. And so there's a massive shift to consumption-based business models that we're seeing. And every, you know, CEO of a tech company is looking at their AI costs and saying: Look, if I don't have a way of monetizing this stuff, you know, my gross margins, in the worst case, can go from 80% down to, like, 60%. But how do I charge for this, right? It's not a per-user thing. It's gonna have to be some sort of, you know, number of phone calls or number of documents generated or things like that. We're seeing, you know, a lot of interest in consumption-based billing models, and it's something that we've invested a lot in the last year, including one of our acquisitions. So we're pretty excited about our ability to help the industry really drive and monetize all AI capabilities that are out there in the marketplace. What do you hear, team, just around the broader competitive environment within consumption billing specifically? Is that something that, you know, anyone else has rounded out, at this point, or is that a place where you feel you're early? We feel really good. I mean, so, I mean, our first customer, Coremetrics, was, you know, a competitor to Omniture, and the way they priced was usage-based. They had complex models of rollovers and unused minutes, and not minutes, but API calls. And so we've had consumption-based billing in our system for a long time now. What we've seen is people wanting to be a lot more dynamic. They want, you know, to have wider capabilities. And then the engineers, what I'll call sort of, you know, a pre-system into the billing system. You know, they use the words metering, capture, mediation, rating, and they wanna take all that information and translate what they're doing in their system to events that can be metered and charged for. And then they just wanna pass it off to finance and to bill for it, collect for it, and so on, so forth. So one of our acquisitions was a product targeted at developers, right? Pre-billing, if you will, but it's an important part of the entire consumption-based story. So with that addition to our product portfolio, we're feeling really, really good about, you know, where we are. Great. Team, you recently completed two acquisitions, Togai and Sub(x). Could you just talk about each of these solutions, what they do, and what drove your interest in those? Yeah. So we took a step back, and we said, "Look, we believe there's an insatiable appetite for more capabilities in our customer base." We see the path of these, you know, these telco billers, and they do all sorts of stuff, right? They do service activation, provisioning. They'll track when, you know, the telco sends somebody to your house to activate these things, right? These field service capabilities. So we feel like we have a very, very large expansion opportunity. We have a very, very sticky product. Billing is usually the last product you're gonna pull out, you know, as you're winding down your company because it's where all the money's coming through.... And so we feel really good about our position, and the way to really use that is to grow organically. But we feel like we can add an inorganic path, and so, you know, we did a $400 million pipeline, and we've been doing acquisitions in a disciplined way. The last two that you said, one was this pre-billing, mediation, and rating system, right? Targeted specifically at consumption-based billing models. And the second one is really interesting. It's we acquired a think of it as a dynamic paywall capability. So, you know, you're a news publisher, somebody's coming to your website. Do you let them view the article? Do you put a registration page? Do you charge them? Do you try to cross-sell something, right? There's a dynamic paywall that's making all these decisions on a case-by-case basis. Surprise, surprise, a lot of people want those decisions to be AI-driven, right? They don't want it just to be you set up a static set of static rules, and you change it, you know, every year or every six months. They want an AI engine that's constantly taking all the information and making quick decisions. So this company, Sub(x), was one of our partners in this space, and that always has a tendency to work well, right? When you have a company that, you know, your customers like, and there's a lot of good synergies and, you know, and the numbers really work out. And so, it really fit our model of having disciplined acquisitions, tuck-ins, that we know we can continue to sell into our base. Got it. Tien, I just wanted to take a step back on competition. Who do you view as your competitors in the quote-to-cash space? Has that changed as the platform has changed? I think there's two views, right? There's a view that says, "Hey, quote-to-cash, isn't that like an SAP? Isn't that like an Oracle, right? If there's a quote, doesn't this come from Salesforce?" I think that view misses what we believe, which is these business models are very, very different, right? The telecom companies don't just put an Oracle ERP system and say, "Hey, there it is," right? "You know, we can now charge for, like, family plans and all these other plans." And so we believe that we're doing something very, very different. And because we do believe we're doing something very, very different, ultimately, our competition tends to be build-it-yourself, right? So out of all those telcos I mentioned, there's one company, Verizon, that says: We're gonna build our own billing system, right? Over time, right, that tends to lose, right? Because commercial products tend to will always outweigh, you know, homegrown systems eventually. We feel like the trend is on our side. Today, hey, there's a bunch of engineers that think they can build it. We'll have to say, "Hey, five, six, seven years later, when your company is changing and you're gone and your business doesn't know what to do with this product," right. We do a pretty healthy business replacing homegrown billing systems. At that point, you know, we're pretty confident you're gonna come to us. When you look at the, and I know you probably can't give percentages, but when you look at the percentage of new business, that's greenfield versus brownfield, right? Replacing existing solution versus coming in, and there was no one there. How would you characterize what that looks like for you? It's pretty healthy for both. It might depend on you know, macro. You know, for periods of time, we saw a lot of companies launching brand-new things, right? And these could be manufacturing companies launching their first connected service, right? Right now, probably the appetite for risk-taking is a little bit less, given the environment. Again, from a trend basis, every manufacturing company that's not thinking about connected services and how to monetize connected services is missing out. And so we. From a trend perspective, we're pretty confident all that is still gonna be there. Got it. Todd, I wanted to touch on a big-picture question from the financials perspective. How do you think about... And I know you've laid out this Rule of 30 near term, and I'm assuming the thought is you want to improve that over time, but how should we think about the trade-off between growth and profitability, and how you manage to that on a quarter or annual basis? In the current environment, our thought is we wanna control what is controllable. And so we've spent a lot of time making sure that we're really gonna be disciplined and focused. Like I said earlier, we're not short-changing our development on product. We're gonna make sure that we're putting the right dollars behind that. You're continuing to see us invest both organically and inorganically. And so as we do that, we will continue to make sure that we are the leading product. We'll also make sure that we keep the capacity when it makes sense to accelerate growth. But at this point in time, I really wanna focus on: What can I see that's happening today? And when we put dollars in something, making sure that we're getting the return out of them that we need. I think that's a good segue into the capital allocation question. Obviously, quite a strong balance sheet with the cash you have on hand, from the money you raised a couple of years ago. What's the calculus around M&A, and are there any other uses of that cash that, you know, you could potentially see over time? I think one thing to keep in mind, eighteen months ago, we were a break-even company, and today you're seeing we're $82 million plus, $90 million plus on the operating margin. So we've made a tremendous amount of progress. As you said, we did take $400 million from Silver Lake several years ago, and we specifically earmarked, so we wanna do that for M&A. We've done about three acquisitions. They've been tuck-in. We've been really disciplined on how we've managed the cost on those. We actually have absorbed the cost across the board for all of those. But that being said, if we don't see where there's a good reason right now in the short term to buy something, that certainly does give us an opportunity to potentially look at other things to do with the capital. So we're open to that, and we've continued to evaluate that, but things have changed a lot for us in the last eighteen months since we did do that raise. But obviously, M&A and growing the top line would always be our first choice. On the stock-based compensation, we sat, I think, about a year and a half ago and made a commitment that we would bring that to under 4%. We did that. The environment has certainly changed. It's certainly changed for, you know, expectations on talent, and as we take a look at our growth rates, we'll continue to evaluate it and adjust as it makes sense. But it's something that is at the top of mind for us. ... Todd, and really helpful. Tien, you've done a number of investor meetings, I'm sure, over the last six to nine months. When you look at what you're hearing from folks and what you're telling the market, where is there the biggest disconnect, and where do you think, you know, investors most underestimate your story? I think maybe at a certain amount of time, you know, we all have all these subscription services that we subscribe to, and maybe investors, maybe all of us had a false impression that this shift to subscriptions is this rocket ship. And if you look at General Motors, you know, in 10 years-20 years, you know, I believe that the bulk of their revenue is gonna come from recurring revenue models, but it's gonna be a transition. During this time, they're gonna sell a lot of cars. If you look at the software sector, right, it took a decade or two for the software sector to embrace subscriptions. And even then, you know, you see slowly the software companies like Oracle, SAP, transition to a recurring revenue model. But that is a four- to five-year journey for them to go through, right? And so we're not in an environment where it's a land grab, and you know, in the next year, everyone's gonna put in a, I don't know, a cloud procurement system or something, right? We're a slow, steady thing. Our trend is a multi-decade trend. You know, we're really, I believe, the only company that's 100% focused on this. I think we've done the heavy lifting of building a broad product portfolio and an incredible customer base. You know, Todd's being modest, right? Going from zero to $100 million, you know, rounding up, I know, of cash and margin is pretty incredible, and it shows that the fundamental business is really sound, right? Which gives us a lot of optionality, and because it's a sticky product, we have a lot of places we can go. You know, the customer base is really incredibly valuable, and so I feel really good about where we are. We know this business is not a business that has a hockey stick spike, and then you're trying to figure out where it is. You know, where this business is really riding the subscription economy, you know, building the foundations and just having good, solid, steady growth with good profitability over a long period of time. Okay, great. And then last one for you, Tien. When you look at the platform where it is today, and you look out five to ten years, what do you want this platform to look like at a high level? A lot of you know, we're called the office of the CFO sometimes, and we certainly understand that. The CFO is a big part of our customer base. It's interesting, B2C companies, sometimes it's actually the head of commerce or digital that owns us, and the CFO's a bit of a downstream thing. But look, this system, right, is you call it quote-to-cash system, you call it a billing and revenue system, is the lifeblood of the modern company, and we believe that that gives us the strong foundation to continue to grow, and you look at the evolution of this most similar thing I can think about, which is the telco market, right? The billing system tends to be the consolidator that then, you know, brings in all the other things that these companies need. And so five years from now, we wanna continue to do that, right? We want our customers to be customers for life. We wanna grow them from $500K to $1 million. We wanna grow from $1 million to $10 million. There's an opportunity to grow from $10 million to $100 million, right? Some of these companies that are $100 billion, you certainly have that potential to do so. That's what we're really, really focused on. And if we just heads down, focus on for a long period of time, it's gonna be a substantial company. Great. Tien, Todd, thanks so much for being here. Thanks for having us, Adam. Thanks so much.