[Call starts abruptly] … I will be your conference operator today. At this time, I would like to welcome everyone to the Braze Fiscal First Quarter Results. [Operator Instructions] Thank you. I'd like to turn the call over to Chris. You may begin.

Thank you, operator. Good afternoon and thank you for joining us today to review Braze's results for the fiscal first quarter 2023. Today's hold music was again composed, performed, and provided by Franky Saxena, a solutions consultant in Braze's London office. Thank you, Franky. I'm joined by our Co-Founder and Chief Executive Officer, Bill Magnuson, and our Chief Financial Officer, Isabelle Winkles. We announced our results in a press release issued after the market closed today. Please refer to our Investor Relations website at investors.braze.com for more information, and a supplemental presentation related today's earnings announcement. During this call, we will make statements related to our business that are forward-looking under the federal securities laws and Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995. These statements include, but are not limited to, statements regarding our financial outlook for the second quarter and full fiscal year ended January 31, 2023; our planned product and future development; our planned social impact initiatives; our competitive landscape; our market opportunity; our anticipated customer behaviors and our anticipated investments; our growth plan; and our long-term financial targets. These statements are subject to a variety of risks and uncertainties that could cause actual results to differ materially from expectations and reflect our views only as of today. We assume no obligation to update any such forward-looking statements. For a discussion of the material risks and uncertainties that could affect our actual results, please refer to the risks identified in today's press release and our SEC filings, both available on the Investors section of our website. I'd also like to remind you that today's call will include certain non-GAAP financial measures used by management to evaluate our ongoing operations and to aid investors in further understanding, the company's fiscal first quarter 2023 performance in addition to the impact these items have on the financial results. Please refer to the reconciliations of our non-GAAP financial measures to the most directly comparable financial measures calculated in accordance with U.S. GAAP included in our earnings release under the Investor Relations portion of our website. The non-GAAP financial measures provided should not be considered as a substitute for or superior to the measures of financial performance prepared in accordance with U.S. GAAP. And now I'd like to turn the call over to Bill.

Thank you, Chris, and good afternoon, everyone. We are very pleased with our first quarter performance, which again demonstrated the power of the Braze customer engagement platform. We got off to a great start to the fiscal year, generating $77.5 million in revenue, up 62% year-over-year and 10% compared to the fourth quarter. Our dollar-based net retention was 127% overall, and 133% for our customers spending at least $500,000 annually. We also generated free cash flow of nearly $16 million, driven in part by our strong bookings from Q4. We continue to expand across numerous growth vectors as our customers realize the positive business outcomes available through coordinated, personalized, cross-channel customer engagement enabled by the Braze customer engagement platform. Zooming out to our market, we believe the opportunity for customer engagement platforms has never been stronger as businesses increasingly prioritize customer-led growth. Customer-led growth is a strategic approach that leverages customer insights to qualify and quantify customer value, then operationalize and optimize the end-to-end customer experience. Braze is unique in the marketplace as our technology is designed to create an organization wide culture shift to focus on the experience that is most relevant to each customer. Let me give you an example of how an industry-leading streaming music company uses Braze to achieve customer-led growth. I recently discovered the artist Bora Uzer at a live event and have been listening to his recorded music on a leading streaming platform. Picking up on my evolving music tastes, this company uses Braze to send me push notifications as he releases new music. And if I get busy and don't catch a song at release time, they use real-time listening data to remind me when tracks I missed start to trend. Further enhancing my experience and driving other engagement goals, they store my…

Thank you, Bill, and thank you everyone for joining us today. We reported a strong first quarter and as Bill noted, first quarter revenue rose 62% year-over-year to $77.5 million. This was driven by a combination of new business sales, expansion of existing customer contracts, and renewals. Our subscription revenue remains the primary component of our total top line, contributing 94% of our first quarter revenue. The remaining 6% represents a combination of one time configuration and onboarding fees, as well as other professional services that are subject to similar annual contract terms as our subscription based revenues. Customer momentum during the first quarter was strong, with total customer count increasing 50% year-over-year to 1,503 customers as of April 30, up over 500 customers from the same period last year. Our total number of large customers, which we define as those spending at least $500,000 annually grew 65% year-over-year to 129 and as of April 30, contributed 54% to our total ARR. This compares to a 51% contribution as of the same time last year. Turning to dollar base net retention. As a reminder, our dollar base net retention represents a 12-month trailing statistic, and sources of upsell dollars include increases to pre-committed volumes of monthly active users and messaging entitlements, signing new business units as we continue to further penetrate our existing customer base through both geographic and brand expansion and the addition of add on features and recurring professional services. Our renewal rate combined with our strong upsells drove the year-over-year increase to our total dollar base net retention rate as we continue to execute on our effective land and expand motion. For the total company, dollar base net retention was 127%, up 260 basis points compared to the prior year and down 80 basis points sequentially compared…

Hello, this is Macy, your operator. We will now begin the Q&A session. Our first question comes from Ryan MacWilliams with Barclays. Ryan, please unmute and ask your question.

Thanks for taking the question. Braze has done a lot to accelerate time to ROI and implementation speed over the last few years. So as we potentially enter into a more difficult macro, how are new customers thinking through the cost and implementation process required to move to Braze at this point?

Thanks for the question and thanks for -- thank you to everybody that's going to come up as well. We are really excited to talk about these results, and also give you a better glimpse into the environment that we're operating in. So I think that's a particularly notable way to start to analyze, what we're seeing in sales cycles, what we're seeing in response to customer implementations, customer priorities. I think that one of the great things that you have as the - as a Braze customers that once we get you up and running quickly, and as you're correct, that we've been very focused on time to value over the last few years. We get you up and running in a fashion that is customer centric. So, you're obviously going to start on one or a few channels, you're going to start on one or a handful of platforms, depending on where you either have your current priorities or where your user base is focused. But in implementing Braze, what we always make sure happens is that you're integrated at the platform level, and then the data flow is vertically integrated all the way through to the channel with our orchestration layer, which of course, is customer centric, sitting in the middle. And from a priority perspective, what we're seeing customers do is that, obviously, they want to be able to kind of defend the customer bases that they have, we're seeing an increased focus on getting higher ROI out of your acquisition investment, which means that people are trying to improve their retention rates or trying to improve the pace and the kind of -- the turning a funnel into a pipe, if you will, so that they're not acquiring and having large drop offs at each stage as customers kind of develop habits and become more committed customers over time. But those are generally always on priorities with various customers. So what we're seeing overall, I think, amongst their marketing and their business priorities are going to be a focus toward those things that are ultimately higher ROI focused on first-party audiences going through, things that are going to maximize retention, maximize lifetime value, improve the ROI of their acquisition spend. But we're not seeing necessarily a shift in those priorities with people that are Braze customers. But what we do see in environments like this is a focus from what was traditionally advertising focused acquisition spend toward caring a lot more about retention, activation, and really making sure that those acquisition investments that they've made either ongoing right now or in the past for maximally effective for them and have the maximum ROI.

Appreciate the color. And then Isabelle, just as investors think about the puts and takes that Braze's net retention. How should we think about how MAU growth within Braze’s customers has supported Braze's net retention historically, and as any changes to the monthly active users within your customer base impacted your view going forward? Thanks.

Yes, so the monthly active user continues to be the single largest component of our top line. And we've been talking about that, since a1ctually before the IPO when we were talking to you guys in education sessions. The other components, CPM-based messaging, those are less than the MOU, but also growing fairly quickly. So the MAU will continue to be kind of a large component and will also drive additions to our dollar-based net retention. I think the other components will mix in as well. SMS, for example, is one of the smaller CPM messaging components for us. And obviously, because of the lower the smaller size, you get higher growth rates based on just starting off the smaller data smaller base. So I think the MAU will continue to add and continue to grow, but we're seeing strong additions from other components as well that are seeing strong growth.

Good color. Thanks, guys.

Our next question comes from DJ Hynes at Canaccord. DJ, please unmute and ask your question.

Hey, thanks, guys. Bill, I'm not sure this is a fair question, I'm going to ask it anyways. Is there a way to parse out kind of marketing use cases for Braze versus more customer engagement use cases? And the reason I asked, look, I think some investors look at marketing spend as more of a discretionary category, whereas engaging with your existing customers may be more resilient. Just would love to get some color on kind of where you think you fall in that spectrum.

Yes. Thanks, DJ. I appreciate you bringing up that kind of investor sentiment where they think about marketing use cases and how they respond to economic headwinds and how customer engagement more broadly and a lot of also just transactional messaging use cases or things that are closer to infrastructure or product are obviously going to be more sticky. Now going back to my answer to Ryan's question, though, about how we think about integration, how people get started with Braze and how they grow with them over time. I think it's really important to center your thinking, not necessarily in how those things are split, but rather in how they get implemented, because the key thing is that whether someone starts with either marketing use cases or customer engagement use cases with Braze, the way that they actually are going to integrate Braze and get up and running is going to be the same because when they're going to integrate us into their end user interfaces, into their apps or their websites or into their data warehouses, they're then going to flow all the data that's generated through those to generate those signals in order to inform targeting or orchestration or personalization. And then we're going to deliver those messages. And certainly, message volumes are going to be correlated with the number and the type of use case that you have. But in general, the integration actually is going to enable you to start in either -- in kind of either of those places or any kind of sliver of either of those places and then move more broadly into them over time. And so when we've got customers that are running -- most -- the vast majority of our customers are running both of these things, right? And…

Yes. Super helpful color. I appreciate that. Thank you. Isabelle, maybe a quick follow-up for you. Just look, we heard your comments around kind of continued to press forward with the investment agenda this year. I mean, I think investors have made it pretty clear, they're kind of more interested in balanced growth and profits in a risk off environment. Obviously, I understand kind of you can't sacrifice what's best for the business to appease the capital markets. But I just want to -- any update on kind of how you're thinking about things going forward? I mean, have you raised the return threshold for your investment agenda? Like how are you thinking about kind of balancing -- threading that needle, if you will, what is still a fairly high loss business?

Yes, absolutely. Thanks for the question. So look, I think we have consistently sort of over the last several years, had a very, very disciplined approach to capital deployment and cash deployment, expense deployment, and that continues. And so we are very diligent right now about how we are having folks travel around the world. And we are very, very clear that we want to continue to bring our headcount plans into focus and deploy our headcount as we have expected to do so. And that's where it's important for us to be deploying capital right now is to bring to continue our growth strategy across the world. And so we are -- we have always maintained discipline when it came to our expense strategy, and we're going to continue to do that so that we can continue to deploy it in the most efficient and effective way possible. So there's no pullback on anything. We're continuing to execute on our plan. You're seeing us raise top line guidance, you're also seeing us improve our burn outlook for the year. So that is -- that's very consistent with what we're trying to do here, and we are going to continue to capitalize on the growth opportunity that's ahead of us and do what we said we were going to do.

Yes, and I just want to also kind of restress our track record from that perspective. So if you look at the time of IPO late last year, at that point, we had only burned about $95 million in cash in our entire company's history, which at that point had been more than a decade. And we had a [indiscernible] run rate at that point of over $0.25 billion. So that ratio of greater than 2.5:1 is relatively rare even among start-ups. And I think it's important to keep in mind that we achieved those efficiency metrics at a time when the market wasn't really valuing it or rewarding it. We did it because it's an important part of our culture in terms of how we think about having value orientation in building for efficiency and building for the long-term. We have been anticipating that the market's appetite with respect to profitability, and growth at all costs would shift back to the state that it's in today for years. We're well prepared for it culturally, and we're actually excited that the market is starting to place more scrutiny on the way that people make investment decisions like this because, to a large extent, for a company with a culture and a value set like ours around spend efficiency, it levels the playing field.

Very helpful, guys and congrats for the next quarter.

Thank you.

Our next question comes from Gabriela Borges from Goldman.

Good afternoon. Thanks for taking the question and congrats on the quarter. Bill or Isabelle, I was hoping you could comment a little bit on the pipeline. And any nuance on what you're seeing between mid-market enterprise, U.S. versus rest of world or from an end market standpoint? Thank you.

Yes. So overall, I think we -- our continued outlook continues to be strong, and we are really excited about the rest of the year. Pipeline, geographically, remains diverse. It remains diverse across industries. And so what we've seen over the last several quarters is continued strength in kind of our top five verticals, continued growth in some of the smaller verticals, and we're kind of continuing to see that evolution. Geographically, we've had some folks travel over to Europe and get some face-to-face time with over there. Some of our leadership has gone over there, and they came back really enthusiastic. So look, we're mindful of the risks and how things are going economically around the world. The war in Eastern Europe is certainly not over. We have our eye on all of this, but the sentiment that we are seeing from our existing customers and then potential new customers continues to be strong and enthusiastic.

Great. And the follow-up is on unit economics. And your commentary just now on focusing on LTV to CAC and unit economics for the business. What we are noticing is that even with the acceleration in sales and marketing spending over the last year, your LTV to CAC by calculation is holding pretty steady. So Isabelle, maybe you can comment a little bit on the productivity that you're seeing in the sales force? Any nuance between folks who have been with Braze longer versus folks that are ramping?

Yes. Yes, absolutely. So I think some of that speaks to a lot of the sort of automation and things that we've put into place to kind of accelerate the go-to-market strategy, particularly for our SMB area. We've done a lot of investments in that area to really just make things more efficient, more effective and get more leverage out of existing tools. And the beauty of that is, as we develop those really for the SMB, we can actually use them across other parts of the business. And so SMB is a great place to develop this and test it and hone it and refine it. And then when it's ready, and it can be scaled up for mid-market or enterprise customers, we can do that. And so I think some of what you're seeing is some of that efficiency at play. And again, really have a strong discipline as it comes -- as it relates to capital deployment.

Sounds good. Thanks for the color.

Yes, thank you.

Your next question comes from Brent Bracelin from Piper Sandler. Brent, you may unmute yourself.

Thank you and good afternoon. Bill, I wanted to kind of go back to this current environment, where we are fielding lots of questions, lots of unknowns out there. How durable are these direct-to-consumer tailwinds and this investment wave into first-party stacks? You have a lot of large B2C brands, but what are those B2C brands telling you at this point? Are they leaning more in? Are they pausing some investments on the consumer engagement side? Just trying to think through how some of these B2C brands respond and how durable those D2C and first party data investment tailwinds are in the current environment? Thanks.

Yes. So I think you're seeing the same things happening as you do any time that there's kind of headwinds that show up, which is that there generally ends up being -- there's going to be trends towards consolidation like the quality, et cetera. And what we are seeing amongst D2C brands that we work with, and I'll provide this with the reminder that Braze's revenue base is extremely diversified. So while certainly, retail and e-commerce is an important, one of our top five verticals, it's right up there with the other four in terms of its percentage contribution to our business. And even within that D2C brands, in general, are a subset of that. And within that, even many of the D2C brands that we work with are those that have a longer-term outlook and are attempting to build a more enduring customer relationship through a multiproduct portfolio. So I think that when you look at a lot of the kind of D2C growth over the last few years, a lot of it was focused on a small number of products in a small product portfolio, many of them were working on the kind of CAC LTV arbitrage that Facebook was affording them in terms of being able to run really good retargeting through platforms like Instagram and other places. And what you have been seeing there and a lot of the headwind being caused by IDFA is they've lost the kind of transparency into those cycles, the marginal dollars not going to Facebook, we see that in their earnings. And that kind of affects a lot of that acquisition. But it's really important to note that Braze in general, the use cases that we work with and the types of brands that we work with are not those that are kind of solely reliant on growth through those tactics. We are working with these brands that have more kind of enduring value. They -- in many cases, they’ve been around longer. They have a more multiproduct portfolio. And in many cases, they're also looking to nurture those relationships over time, even if the customer is maybe not making a purchase today. And so we are certainly seeing amongst that subset of our customer base, a lot of the things that you're probably hearing about in other places. But it, again, is really important to translate those observations back into the use cases that we run and the kind of aspects and then the selection bias that already exists with those types of business that we work with within those categories.

Super helpful. And then a quick follow-up for Isabelle here, extremely surprised to see 20% free cash flow margins in the quarter. How much operating flexibility do you have in this model as you think about the changing macro? I mean you talked about improving the burn outlook for the year. But how much operating flexibility do you have to respond quickly if things do turn a little bit worse than what you're expecting at this point?

Yes. So certainly, not expecting to have to turn on a dime and to anything, as I will reiterate, we are executing on our plan. I would make the comment about the free cash flow that this is -- we don't -- obviously, we don't guide on free cash flow. I always tell people to look at free cash flow to four quarter trailing. You obviously saw a big cash outflow from a free cash flow perspective in Q4. Some of that is a little bit of a snapback from that. So we're very comfortable with where we are landing on a four quarter trailing statistic. And I think should we need to make changes, we have all of the data and infrastructure and sort of communication channels in place and ready to go should we need to do that. But we have no expectation at this point that we would have to do that anytime soon.

Great to hear. Thank you so much.

Our next question comes from Brian Peterson with Raymond James.

Thanks for taking the question. So just one for me. So it's interesting to see the user conference, I know it's going to be in-person, both in North America and London. I'm curious, what is that historically driven in terms of net new business or expansion with existing customers? And should we think about that as a catalyst as we head into next year?

Yes, so thanks for the great question. We are super excited to be back in-person as well. We also increasingly are leaning into bringing our event production and our community growth efforts closer to where our customers are, so we are excited to do this on both sides of the Atlantic this year, and we will have a number of regional activations around the world, including in Japan and Singapore throughout the year. So watch out for a lot more to come from that perspective. Now with respect to your question around how this drives new business versus upsell, we -- historically, it certainly has been a driver for business, but it's also one that we've had, multiple years in the past, COVID in the last 2 years have obviously changed the nature of the event quite a bit. But we assume that we are going to run a customer event. And so we are excited about the potential that, that will have for us from a pipeline generation perspective, but I'm not going to speculate on exactly how that would feed into end of year plan with respect to surprising us in any way as we've done this year-over-year.

Understood. Thanks, Bill.

Yes.

The next question comes from Pinjalim Bora with JPMorgan.

Great. Hey, thanks for taking the question and congrats on a very strong quarter. I wanted to ask you a high-level question, Bill. On community, I’m starting to see people flaunt Braze certified marketer badges on LinkedIn. It seems like you are doubling down on the community with Braze for Success with the learning portal. What remains to be done at this point in time to kind of make the path of people starting to build careers on Braze as the default platform for customer engagement? And in the last year, are you kind of starting to hear a bigger drumbeat of people starting to do so kind of spreading the brand recognition more broadly?

Yes, I mean absolutely, and thanks for noticing. We think we are still definitely early in the progression of supporting our customers through traditional education, supporting and building the community of those practitioners that come together, augmenting it with additional trained ventures from the GSIs and from the rest of the agency community, the kind of growth. Marketing community has obviously been an important part of our timeline from its advent in our early years and how that's grown up into growth agencies all over the world, many of which we work with and are helping with our partner-led onboarding, our PLO initiatives that we've been driving. That's one of those things that Isabelle referenced a little bit ago in terms of our higher efficiency investments into our SMB sector that will then later help us improve the economics elsewhere. So there's a lot there. I think when we think about the investments, it has a few different dimensions to it. One of them is that improves time to value because if we can have customers get up and running more quickly, get up and running more expansively and make that early education and onboarding more efficient and have them retain more. All of those things obviously help them get up and running. We also know that the quicker people get up and running, the quicker they move on to new use cases, the quicker they expand to more platforms and more channels and that leads to the strong dollar-based net retention that you see. It also means that as people become more advanced in their usage of Braze, we frankly have fewer and fewer competitors that can deliver on the same types of things. There certainly are people out there that can deliver and compete with us on the…

That's great to hear. One follow-up, Isabelle. I was looking at the billings growth, which is super strong. And then I'm looking at the RPO growth, which kind of a little bit decelerated. I wanted to clarify, I think you said contract lengths were approximately 24 months. I think last quarter, you said it was slightly above 24 months. Was contract length, was that a slight headwind to RPO in Q1?

So I mean it was still in the sort of 24 month range. I think we are going to stop providing sort of the nitty-gritty details of up a month, down a month. It's still in the 2-year range. So we are just going to stick to that as the disclosure. I think from a billings perspective, if you actually look at the components of what drove the calculated billings, the change to deferred revenue was obviously significantly stronger than same period a year ago. So growth, obviously a part of that, but very strong cash collections from customers also fed into that as well. So I wouldn't necessarily read into sort of otherwise weakness in the RPO relative to the billings number.

Got it. Thank you.

The next question will come from Arjun Bhatia with William Blair.

Perfect. Thank you and I will add my congrats on a great quarter. Bill, it seems like, obviously, customers are spending more with Braze, you're seeing larger deal sizes as customers realize the importance of this customer-led growth in first party data. I'm curious, when you see customers spend more with Braze, what are you noticing about where they're reallocating those dollars from? Is that -- are you seeing a consolidation trend where vendors are -- other vendors are maybe getting displaced? Is it advertising dollars? Just curious what dynamics you're seeing in terms of budget reallocations?

Yes. So thanks for that. So the -- we are seeing kind of all of the above, of course, and we haven't for a long time. I think that the -- and that really plays in more at the land stage with new business. So you're going to see money you get moved out of advertising and consolidation happens a lot with respect to us kind of going in and maybe there was previously an e-mail vendor and a mobile push notification vendor, and they're running something else for in product or maybe like a survey vendor or something like that. So we have a long track record of coming in and starting out with either replacing or consolidating other places. We also often are part of net new budgets, especially when there's new initiatives. So if you look at the kind of move toward direct-to-consumer type offerings that are happening in places like sports leagues or in media streaming media and streaming or even in like consumer packaged goods industries or with QSRs like -- all of these are great examples where they've been building more direct-to-consumer digitally enabled offerings. And so those are part of net new budgets because they're brand-new corporate initiatives. The -- I do think that we also see over time a shift or a kind of accumulation from 2 other places. First, of course, it is ROI positive, as we've spoken about before, and often much more so than advertising. So you do see a shift from advertising. I think also one of the things that we bring in to the mindset of organizations to think about not just acquisition and retention, but actually acquisition activation and then retention and Braze really helps with those activation use cases, which are that, okay, I've got…

Perfect. That’s very helpful color. I will leave it there and then thank you.

Thank you.

[Operator Instructions] Our next question comes from Derrick Wood with Cowen. Derrick, you may unmute and ask your question.

Sorry. I found the mute -- unmute button. Thanks and congrats from my end as well. I guess then, Isabelle, I will just throw one out to you on the dollar based net expansion rate, remains healthy. It was down sequentially. Now you've seen that trend from many others, given the anniversary-ing kind of the catch-up benefits and post-COVID. Is that the main factor here or anything else to call out? And should we expect this number to kind of continue to moderate through the year, just given the tougher comps?

Yes. I mean, look, I think we are already operating at a great level for these metrics. I think company-wide, the number went up year-over-year, and we're pretty excited about that. So I think we are already operating for a best-in-class area. I think they're going to bounce around, and we are going to keep executing on our land and expand strategy. And so in some quarters, you're going to get some great lands and in some quarters you're going to get some great expands and on the whole -- over the course of the years, it will kind of drive the overall growth of the organization.

Okay. Thank you.

Our next question comes from Pat Walravens with [ JPM ] (sic) [ JMP ].

It's JMP Securities, but thank you. Hey, Bill, so are you seeing any impact from the tougher venture financing environment on the positive side? Like are you seeing any of your competitors pull back or maybe interesting companies reaching out because they're running out of money and want to get bought?

So headwinds like this definitely lead to consolidation in markets, and we’ve seen some smoke rising in various areas, but I wouldn't -- I'm not going to kind of speculate more deeply on behalf of any of our competitors amongst the broader landscape. What I will say from our perspective on all of this, though, is that we feel really fortunate to be fully funded, as Isabelle mentioned. We see a tremendous opportunity to go and not only gain great market share during this time period, but bring in fantastic talent. We are starting to see a little bit of a thaw in the job market, which for those of us that are still hiring, is a really fantastic thing because we can find a lot of people that probably haven't been on the market for a long time as we go through this next critical stage of growth. And we are well aware that a lot of our -- the competitive progress that we make over the next couple of years is going to be higher leverage than it is an environment where money is easy. And so we are laser-focused on that as an opportunity right now. And we are -- if you go back to my point from earlier that we've been ready and are excited to embrace this environment where there's more scrutiny on efficiency because we think it's a cultural advantage of ours.

Great. Thank you.

Okay. Our final question comes from Brian Schwartz. Brian, please ask your question.

Thank you very much. One for Isabelle. I know you don't give the granularity on the gross margin by geographies, but it looks like you had a very strong international quarter. So I was wondering if there was any changes in the gross margin that you're seeing between your business in the U.S. versus international? Thank you.

Yes. No, there's really no material difference if you think about kind of APAC overall, EMEA overall and the Americas overall. There's kind of no real distinction there. We really think about the products that we sell as kind of the comprehensive customer engagement platform, we look to service the customers in the best way possible for them to engage with their end user community. And so we've talked about this in the past, different products mix in with different levels of margin. But there's no sort of direct trend with the broader regions against each other. And even to a certain degree across the industries, there's higher margin and lower margin customers across the various regions, and there's higher margin and lower margin customers across the various segments, so -- and industries. So it's -- there's not really a story or a theme there.

Yes, and I think that just to kind of hit that a little bit more directly, I wouldn't expect there to really, at any point in our future, either be like a read-through in terms of what you might be seeing in SMS oriented businesses and the international versus domestic margin situations. We really -- when we pursue business like SMS, we ensure that it fits the margin profile that we expect. And if it doesn't make sense in international market, we are not prioritizing that business. We know that the use cases that we run are ones that are high-value, high ROI as I go back to a lot, the sophistication of the platform is in the customer centricity of it, and that's where we are looking for our pricing power. So we are not chasing high-volume, low-margin business anywhere in the world. And so you should expect that to kind of continue to be our [technical difficulty]

[Technical difficulty] all of the questions. I will now turn it over to Bill.

All right. Thank you everyone. We were excited to share all this information with all of you. We are looking forward to doing it again in about 3 months.