Q2 2020 Fiverr International Ltd Earnings Call
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Thank you all radar and good morning, ladies and gentlemen.
Thank you for job [laughter] fiber earnings conference call for the second quarter ended June Thirtyth 2020.
Please note that this call is being webcast on the Investor Relations section on the company's website for details about result in additional management commentary are available in all shareholder letter, which can be found on the Investor Relations section about left that I, if master dark fiber dot com.
Joining me today on the call I mean, how costly founder and CEO and offer Scott CFO.
Before we start I'd like to remind you that certain matters discussed today are forward looking statements that are subject to risk.
Turning to use relating to future events and or the future financial performance.
Actual results could differ materially from those anticipated in goes forward looking statement.
Additional information that cause actual results to differ from forward looking statements can be found fidler periodic public filings with the U.S. Securities and Exchange Commission.
Including those factor, it's got under the risk factor section in fiber 20-F as filed with the easy.
The forward looking statements in this conference call a based on the current expectations as of today.
Fiber assumes no obligation to update or revise though whether as a result of new developments or otherwise.
Now I will turn the call over to me.
Good morning, everyone. Thank you for joining us on the call today.
We hope that you are all keeping safe and healthy.
Oh, you, Brian being one of the most productive and boarding playing in our company's history.
Strategy that we have repeatedly and our strong execution during the global pin debit.
He's one of the allowed us to achieve [laughter] outspending quarterly performing what revenue growing 18% year over year reached 47.1 million dollar.
This is the strongest quarterly well we have cod in 2012.
And over $10 million or nearly 30% above the top end of our guard.
Well this is stronger than anticipated topline growth.
Oh I thought you eat up we'll see the ability to your head of our expectation at the IPO and many cornered the heads or station as communicated just a few months ago.
When it is incredibly satisfying to see our business accelerate.
Equally rewarding to know that our success if if there were multiple <unk> that the mark community.
More and more businesses are conforming digital first using fiber and more and more freelancer.
Provided with opportunities to generate income.
He is an incredible privilege to be able could be there or community in these challenging fine.
Turning to figure out a quarter inclusion and diversity were brought to the forefront of discussion of worldwide.
It's fiber age gender diversity or disability did not play a role in determining work that.
You are Josh only on the core did you hear work.
We think special pride in being one of the most computers and diverse communities online.
We leased by these principal 365 days a year and we are proud of the positive social impact our business is making the lives of so many.
The outstanding jewelry goal.
If it had some several strategies we have put in place.
We step up.
Great. Thanks effort at the beginning will be here.
And since then I've launched by non English speaking website.
Starting to ramp local PR and performance marketing investment.
We also streamlined internal operation.
By management in terms of capital gets function.
Well on boarding is what is quite a few management.
These investments turned out to be kindly when cobiz 19 here.
It's been more able to respond to the global train in remote work and digital transformation much more effectively.
He's ever ultimate goal that significant increase in Britain turgid fiber share of voice and strong uplift in fibers brand awareness.
Led to an 80% year over year increase in overall organic traffic.
When called the thinking he.
We quickly responded in several ways.
We live in on performance marketing opportunity.
Nothing more dollars better PR away.
And marketing efficiency.
And acquiring higher lifetime value buyer.
Well trained.
On both organic and P. channel, resulting in a record level of net odd.
Well actually buyers on the Mark.
We've also seen existing cohort spending more during the past few months.
Well not bridge existing core group Monkey GMP double by 10% from January to June this year.
And we expect the elevated spend level to continue into the third quarter.
No Super happy with the Q2 execution and I'm incredibly proud of the team for their focus syndication and amazing creativity.
That that I'm, even more excited.
Hello.
The inflection point.
The adoption over more work, which many of you have asked us about path.
He's with insight.
The awareness openness and emphasis on remote work and digital transformation has taken a multiyear leap for the entire business community and Uh Huh.
Let's move fiber loop like five years down the road.
Question, we open here he's not here than ever.
There are three key component when we envision taking fiber to the next level.
First he how are you going up market for both supply and demand in our marketplace.
On the virus side, not the only fiber relevant entrepreneurs individual contributor to appease here.
But we will become a working hub for team inside company and businesses to collaborate with external resources integrated into their day to day work, though.
Well the seller side, not only fiber and important channel for Freons for an individual common.
But you will also become partners and distribution channel for agency consulting fees and other service providers.
Without the mine, we launched fiber business in beta.
They do get into an environment for businesses and team to transact and collaborate on fiber.
This is going to be a long term investment for us and we are just at the very beginning.
We also acquired a peak digital marketing agency recently, and we've got Onboarded need Sharon lead to help drive the agency market initially.
The supply side.
Not only Sharon a domain expert in our target agency market. She is also a heavy fiber user.
And then obviously fighter community leader.
Many of you may have seen her picture on the New York marketing campaign last year.
Second we are building global brand with a global footprint.
Global share of voice a global business.
Our investments in localization.
And into money just website have proved to be very timely.
You need more it pairing than ever.
The need for remote work and digital transformation either global.
And that the pivotal market outside of English speaking countries. These huge.
We need to be international expansion will continue to be a key strategy for fiber going forward.
Third.
We are building fiber.
Not only as a transaction cost for him.
I think equal system for businesses and free answers to grow and thrive.
You fear launched fiber learn and E learning module on fiber.
You see not acquire and expand and about coat, Hey, Bob coffee tool for free not true to managed care contracting in Boise.
You've seen a introduced promoted gig and advertising tools that allow sellers to step up their marketing.
You've also seen a integrate calibration cool that should give them into our marketing.
We're also building financial tools to help freelancers get early payout on their earnings.
These are just a few examples of the body audit services that we started to work on it.
There are many more into pipeline.
Well, then impediment corporate 19, and global macro conditions remain highly uncertain.
The data we have seen when our market base across cohort verticals and geography over the past few months indicate that'd be elevated spending trend on digital transformation are going to stay per month, if not for years.
But has also become clearer.
Do you might.
I have been the opening of any I've spent the mentally changed how businesses reached or customer and how work takes place.
And these changes will not far beyond the Sunday so.
Yeah build our business from day, one to promote for most work.
Enable digital transformation and to create a level playing field for every time.
And these opportunity I've been pushed forward and are now more relevant the ever.
We believe we are well positioned to take advantage of these opportunities with our vision.
Digi and strong execution ability.
And now would become profitable also more resources to put in place to drive towards these opportunity.
Well not known I'm going to be turn it over to offer will share a few Q2 highlight as well have some color for the rest of year.
Offer.
Thank you and your time good morning, everyone.
The last few months had been very exciting <unk> business.
Yeah, Keith urban grew 82% people to do 47.1 in.
The revenue growth is the strongest weve other students.
Since 2000 somewhere.
We benefited from the global trade you won't see most pool can be just think explanation, but more importantly, the started to do that we put the blaze and the strong execution of this budget do is what allows us to capitalize on the tailwind.
You mean to cool, though active buyer achieved that cool and then a.
Net and reaching a total of 2.8 comedian.
Even bodies strengthened both organic and they try knows can you highlight went downhill.
Yeah, well before the court, though was slightly above onex, an improvement from Q1.
We were able to remain highly efficient and I will use the from rocketing doing on the same time extending out those kinds of marketing expenses.
By about five comedian from Q1.
Since the buyer was 100 to make before going on and increased 18% people go below.
Even by both new and existing cool.
It's business as a percent I get the phasing investing in digital transformation.
We have seen on them quote Golden Monkey He has been on average by 10%.
The beginning of people.
We expect the spin we may not be elevated London glutone.
The other hand, we continue to expand the lifetime value I probably equal.
As we founded by begin a budget and Eagle.
They canceled due but 27th person <unk> 60 basis point people do you.
You've been buying in Queens, Lebanon mix.
Services, such as time goes down and cool and clinically.
When you compare sequentially with Q1, they taste was down modestly by 10 basis point. This is mainly due to the exceptional grows the phone call marketplace competitive value added services.
No.
The cool marketplace. They remain stable at 25% when I was just talk show for body of incentive continues to be only phone calls.
That's inside you don't know Pete and practical.
And the mix of cool, that's not cool services and our platforms Tonight. The blended take place me also modestly fluctuate.
We continue our own global expansion April non English speaking markets continued to include some confusion call a marketplace led by Germany, well see I'm frankly, we three became locally doing the quote them.
We've also seen sweeping across all verticals like programming impact. We did you spoke break even by trend equal mouse and what succeed benefit.
We're also pleased to see out with existing cool extend those 10 11 over the past few months.
Ladies and Terry Dolan marketplace, when they need digitizing the business most of it says to remote from England.
This it's to the trend.
Our called me.
Not only does agenda like I couldn't system spring up why didn't you called bidding on time I think also has potential to grow we do although marketplace.
Yeah, she's been important I phone enriching EBITA profitable in Q2 significantly ahead of our accretion.
She used to EBITDA was 3.1 million.
If there's anything you'd be football game up 6.7%.
Why did we believe we remain profitable this rather than 11 I won't play you always be continues to be driving revenue growth.
That's cool we tend to keep you need to invest in our brought up we've done a clinical map and marketing initiatives.
And I see probably the baby.
We can make those invest turn on a more because that's the online.
During the course, though we become more than assumed he by acquisition as we saw an uptick opportunities up almost not to be not only did he does htwo, we were able to do so with that kind of efficiency.
We noticed that investment team made in localization once by me and then me what's driving concrete I'm to walk you come to five though so we doubled down should we be smoked accelerating the pace of opening new country and I'd be equally in Netherlands <unk> portfolio.
We also so a certain amount of cellos coming to the platform it'll become one of the primary source of income that's include individual put it on to as well, but big agencies.
So what we've decided to people won't be agency investment when I'm old Matt maybe what you do a position and began building out a dedicated team and a concrete roadmaps for the Eagles student stupid.
You know just few examples you many moving into pipeline, maybe up to allude to talk about at this point.
Well just that food took place in just shown humans as.
There's no business of television to form a 40% going well to 80% going well and reached 50 community.
As we saw fundamentally change the school benign thing is broken do over wouldn't business community.
The business, which we don't.
Responding to changes in our business book Fine and to inspection points of total interest he picked because you'll be hearing improved execution ability of the company.
As we've said many times before the majority of phone growth still ahead of us.
We continue to me that's how we can then some don't know into product and marketing to drug broke up the business.
Okay for one.
Well the long term impact could be nine can remain highly uncertain, we have come to them to provide phone Q3 guidance and also significantly raised our full year guidance.
The strength of all existing core hoping to taste. It ends up being called sustaining at an elevated level of spending that's a swing baseline fall guide them.
In addition, we expect the attracting window after investing in performance marketing to remain open you talked to keeping investing with high efficiency.
We also expect to invest aggressively pulled up in marketing to drive long term initiates these as I mentioned before.
It's all Nike mine, we expect Q3 revenue.
In the range of 48 to 49 billion, representing able-bodied games, 70% to 76%.
Adjusted EBITDA for Q3 is expected to be key to screen begin representing 5.2% revenue at three point.
We are raising full year revenue guidance.
170, 720 sites 279000 spikes median well six to 6% to 68% people about equal.
I can find guidance. That's 145 point 547, please price million cool, that's just seeks to 38% people don't go.
Well I wouldn't cuisine, who really be 10 died in a positive from 25 to six thanks, Frank Sweden.
Compiled by then negative nine when they get the 7 million.
With that I'll now turn the corner once the deal type of question operator.
Thank you.
We will now begin a question and answer session.
To ask a question you My press Star then one on your telephone keypad UK speakerphone, please pick a handset costs in the key.
Withdraw your question. Please press Star then too.
At this time, we will pause momentarily to assemble our roster.
And the first question will come from Doug Anmuth with JP Morgan. Please go ahead.
Great extreme question, a great quarter guys. A couple of questions I'm first Mihael, just hoping you could talk more about this strategy to go up market of fiber business. Just curious more kind of the target size of business. You think are focused on.
Some of the key investments that might be required there and then if you could just talk about healthy or agencies fit in Italy, and the import these there on the distribution side.
And then just second maybe for Ofer.
You talked about leaning in on higher Oh, TV buyers I'm, hoping you could give us some more color just around act is recent active buyer behavior versus a existing cohorts and I expect that to play out going forward. Thanks.
Hey, good morning. So thanks for the question the first one in terms of going up market. So.
It is important to understand that as you look at B the diversity of our customers.
Customers ranging from solar printers, and micro businesses up to a small medium and large businesses now as you go higher into larger businesses or or medium sized businesses oftentimes. These businesses interact is.
Having multiple accounts.
Sometimes is.
Complete teams that didn't drop on the platform and what we realize was that in order to maximize the potential over their usage, we need to accommodate by building a more advanced.
Product that would allow them to have Pima County.
That will have some benefits or being able to share their trusted sellers are between themselves as a team and work on projects together.
No we see.
You know things like I'm, having a cone permission and having at paid for it would permissions or purchasing these are all a these are all functionalities dr., we wanted to odd into the product and in these R&D.
That's a feature that were not releasing in beta.
And that will officially released or later into the quarter.
In September so so we sincerely these are the types of a of function.
And we think that it's important to facilitate the natural movement top market that we have been seeing even for many quarters.
No the the part of the or depart the the agencies are playing here is.
And again when you look at D. The diversity of our supply.
Not all of our sellers are individuals.
Some of them are a boutique shops or studios or agencies.
And we would like to ensure that the agencies can operate on the platform in a very efficient matter and again. These are often times multiple accounts that are operating and need to work when a specific project.
And in so we we decided to ER to invest in Dod because this allows us to talk a little more complex starts of project.
And also deal would do would would lower the work that ER that often times easier for an agency to do with.
So around around Dot we have acquired a.
It's Mobikwik agency and and we're going to use the learning.
From.
From that agency and incorporate them into the types of features that we would like to bake into the agency account on the platform.
[laughter] question Doug.
Leaning into the thing, it's not cutting and higher lifetime value.
What do you have experience during Q2 is a windows of opportunity for us to doubling down on women's marketing.
Investing approximately partially I'm done about Q1.
Why is keeping an even improving see how long will reach a and up to be more than one that.
A return on investment for the quarter now. This this is driven by.
But the syndicate.
I don't think I will start by saying that he pulled onyx uptick.
As being very strong.
All of them quicker.
So not only the Oh.
I'll break them to cope with the end up enough quota is continuing along the way to come to life.
So that by having or continuing some buying has done extremely by.
Traffic, we were able to creeping back then.
Oh, well, keeping a very very efficient and cost structure. So that's one factor in the second is that.
Or existing.
Existing cool.
Well be able to include a the spending on the marketplace from dealing to quote on compelling compelling previous period. So that's what we've seen is that.
I'm not told me that produce some cool who enjoy the highlights bring value.
<unk>.
Hmm is that investment and then on the marketplace on an average up 10%.
Oh, So bad times, we are or we are focused on on lifetime value.
Hi locked on value for so long as good a we've been able to increase like find value by focused on the beach to try and buy product initiatives that did this quarter was not an exception not the complaint I think that's a fact that topic always loved forming the pack.
Experienced truck or Prebuild prepaid they just gross.
And enable us to increase the old spend from by all the way to while.
18% growth are you able to lose.
This is coming despite the fact of clinical Blake King.
A number up can you buy on and bear in mind that when we feel very cool breaking.
A number of a few buyer in the marketplace China for considerably.
No.
I'll just people buying it was being calculated on a pro slumps did it so that but that's kind of outside the patient.
Oh told his trend or we see.
Like comes back to you and and I'm really something meaningful.
Okay, great. Thank you Beth.
And the next question will come from Ron Josey JMP Securities. Please go ahead.
Great. Thanks for taking the question I I had to really quickly just on on categories pretty amazing quarter me kind of know for.
Thanks across some of the categories you talked about ecommerce tripling in gaming up nine acts can you talk about the supply side, particularly from.
There is but also as demand goes up and what you're doing due to just you know if.
You need to Amp up the supply side on just on promoted listings I know the plan is off.
Product you're now in 15 categories.
Got the rollout plan to your.
Mm what you've learned since the April long into the freelancers actually qualify.
To its actually have promoted gigs items now we're still in the testing chase.
Thanks, so much on so for the first question in terms of a supply.
We are seeing elevated levels of supply coming in.
And obviously we are investing.
I look in making sure the doctor supply enjoys access.
To our toward demand.
In terms of in terms of categories.
Indeed, you know anything related to taking businesses online web site ecommerce development website development, social media marketing content creation.
I've seen tremendous growth actually the largest wood was a was program.
Food triple digit but that's.
That said all of our vertical between the very high double digits to.
We've seen that growth across the board.
It in terms of a in terms of Oh performance marketing I'm sorry in terms of promoted gig. It is scaling as planned we did say that I mean, I think just a few months ago.
It's now up in 15, we've extended the areas in which we put promoted gigs in we've increased the number of sloth and Weve opened it up to more sellers.
Claim that the reason for doing Dod is that it's very important.
Not to both the relevancy of those promoted gig.
And the quality.
It'd be very high in indeed, I'm seeing that these numbers actually a full so these guidelines for the first.
HM that's across other categories, we're not giving the exact we're not providing the exact percentage of sellers that that qualified to it but guidelines for which which services are exposed or can qualify.
Hi, I'm are outlined in our website and we're going to be happy to share that we do off.
Finally, we are extending it it's it's not just.
The amount of categories and the amount of sellers eat the placements within within.
The website.
It is it you know adding.
Opening it a Ah ha and I'd engine in an ecommerce websites is very complex any it's a it's a carefully but we are expanding as it's not then we'll continue providing more color and not being in a in the upcoming upcoming calls.
It is going is funny it is being expanded as we speak.
Great.
And then a question is from Brad Erickson with Needham and company. Please go ahead.
Hi, Thanks, a just a couple so on the marketing.
Initiative I guess, a couple of questions. There one or you know the beta is just rolling out or something like the betas just rolling out yeah based on your commentary, but it's a finding and.
It's definitely curious if if there's any sort of view that you can sort of aggregate demand with that product versus some of the park and second is.
Is it fair to assume that that the up marketing initiative and sort of the Halo effect.
Additional organic customer acquisition tool that might be a tailwind for you here as you roll. It out later this fall any thoughts there. Thanks.
Fixed for the questions.
So and as we think about about these larger types of customers. Obviously this allows us to cater to customers that have a much larger wallet.
And we want to make sure that we gain a.
In in so by opening up these.
Features that allow allows.
This is fluffy invite there.
In a way to integrate.
With their workflows, he's extremely important any making.
Further we optimized for this experience.
And so we didn't allow us to capture more of these business activity as they work, which bring answers and not probably even more now when the awareness he is elevated to the opportunity.
Definitely working with them online or through the efficiency over over market base.
No as a reminder, fiber does not have a sales force and we don't intend to too.
Booked wanting place anytime soon so as we think about more of these types of customers.
Although what we're doing right now is optimizing the funnel the on boarding funnel.
That would allow us to use our existing marketing methods that are a combination of brand marketing and performance marketing to the two Ah Onez Board. These types of customers into the platform very efficient very efficiently with double so we're very excited about that because we think that this.
This is this has tremendous.
Opportunity not to say that we we are anywhere near consuming the small sized businesses.
We feel that we're just starting in work what we're seeing would be it the growth that we've been able to demonstrate this quarter is that the the road ahead or do you opportunity ahead to capture more of that market is huge but we think that is we do that it's important that we also taco.
The types of businesses and make sure that we build the right product for them to efficiently interact with our marketplace.
Got it that's great thing.
[noise] once again, if you would like to ask a question. Please press Star then one.
Your next question will come from Jason Helfstein with Oppenheimer. Please go ahead.
Thanks, I ask about or take rates are trailing 12, and take rates were down quarter to quarter, just maybe expand upon that you know how you're thinking about that was there any you know impacts kind of onetime impact said that could have brought that down sequentially and.
<unk>.
Oh or Jason and then second.
And then the second follow up gross margins improved to 84% business rates sustainable or more onetime in nature. Thanks.
Oh good morning, Jason Thanks for the question.
So you're right to point take rate. If you if you look quarter after quarter I've been going down for from 27.1 to 27. So it's it's a very very small decrease and we've we've actually explain dock in our letter to shareholders. The reason why it is decreasing as a reminder, that the weight take creek is being.
We believe these we have the core business the transactional business that represent 25% out of that 27% and the rest are added volume product conservative. The reality is the core business has grown slightly faster or slightly higher.
Then be added value services.
So if our core business has grown by 80 plus percent.
The added value services have grown in the high Seventys percent. So if you if you combine.
It's not a together you lose dot 0.1%.
And we've explained that dot type of fluctuation, especially in month.
When a winter subject for eight quarters, where there is such a tremendous growth in the core business might happen. If you think how to model. This going forward. We don't expect us to go down the same trends that you've seen throughout the quarters as as the company with a has gone public.
He's going to remain a in the same trained we don't expect it to go down.
And then on the second part, but the quick thing on the gross margin.
I think that don't make it difficult for some gross margin is is a highly that cool.
Philosophy.
It there's the pension or some sort of all you have to live said.
We enjoy a very strong.
Kinda like based on quota, we are investing fall, though and I can see.
Just a book on the invest in it so.
Initiated.
Oh, we don't expect the gross margin to stay at 84% from a long long Oh, we did mention in the past up it feels very comfortable.
Most like 80% that's the do expect the EUR, 84% Im just trying to little bit.
In the next I put a funko so.
Thank you. Our next question will then come from Eric Sheridan with CBS. Please go ahead.
Thanks, So much for taking my question began to go back to Roms, I'm, just I think out over the longer term horizon.
We think about the possibility.
I wouldn't grow the marketing side in the platform. So that sellers are getting the distribution. They want your your team increased unit economics from sellers as they work to promote themselves more and drive more conversion on the platform what tools still need to be investing in against your longer term goals for that part of the business.
Is there sort of a long term goal, we should be thinking about either in terms. What do you think you could grow that part of the business every two or how much could amplified margin contribution over the medium to long term. Thanks much guys.
Hey, good morning, Thank you.
You know I I think that.
Well, we've demonstrated in in the past few quarters is that we're ever we see an opportunity.
To scale up our marketing marketing effort.
We're capturing dr. opportunity and we do it in a very efficient manner, while also improving the overall efficiency of marketing as a percentage of our revenue.
Well, we have scaled up our marketing significantly and we've done it in in many ways.
From a are working Britain marketing.
To our work on the affiliation front.
Well, we do we influencer marketing and social marketing to performance marketing on on many channels.
And in fact.
Side by side with Dod we are providing our seller is with the ability to promote themselves within the platform and outside of the platform.
To ensure a they maximize the exposure ER docs are they receive.
On top of Dodd, what we are doing on the supply side is developing tools.
That allow sellers to get enough exposure loved the flywheel effect of supply and demand kicking.
And these are areas, where we invest a lot.
We do that by providing the right algorithm algorithms for that and by providing the right vertical structure of our catalog to ensure that our sellers have the right area the right category in which they compete.
Oh for our buyers or demand.
Yeah.
Thank you and your last question will come from Nat Schindler with Bank of America. Please go ahead.
Yes.
Hi, guys and I'll be redundant say great quarter, because you know that's pretty obvious but can you talk a little bit about what you saw in in the change in silver cohorts or if there has been a.
Specifically <unk> change in the dynamic on whether or not sellers are people with other jobs that happened to be working at home and doing that doing access time that they I know might have been commuting.
With gigs on fiber or are they just more people because people are not able to work.
And I'm good morning, and thanks for the question. So we're definitely seeing a mixture of everything is is locked down actually change you see change in those trends as well in the same goes with unemployment.
I think I've seen that what we're seeing is a mixture of obviously that the the same types of cohorts that we used to get on the supply side.
Accompanied by people Dod either lost their jobs.
Or just as you said spending more time at home and thinking about what to do with there with our time or their career.
The quality of the supply that we're seeing is definitely elevated we started speaking about dive into previous earnings and we mentioned.
Oh.
Are keeping the same into into Q2 and <unk> as far as we can see into the current quarter as well. So we are definitely seeing more qualified sellers.
The.
Used to do most of their work offline by meeting client <unk>.
This is the limitations right now are getting more open.
To the options of doing you know they find to be extreme you.
Fishing, they can do it from the comfort over ever they are and they can do work on much higher skill.
Because of the efficiency, but the market be introduces.
So we're definitely hoppy.
Oh the point that we are always made about the fact that the majority of for nothing is happening or flying is starting to get a different trend that is changing trends.
And we're very happy that were there too to capture that opportunity.
And just going off on that point, it's or some of these kind of more professional freelancers and agency groups that are using it.
Are they pushing back at all I mean, the earlier example, maybe a.
A graphic designer in eastern Europe, getting a customer in New York City.
That person does not care, what the take rate is because that's new business, but <unk>. These professional <unk> agency types that are using the business now.
Are they having any push back on the 25%.
Yeah, so not as far as we can do we can see right now and I think.
Interesting here is the fact that the more sophisticated.
He become if you look at agencies.
Agencies appreciate to source client.
They appreciate how hard it is to do the technicalities that have to do with the work that has nothing to do the work itself.
And because I'm not I think that bite on boarding fiber they understand the benefit.
Oh, just sitting there and waiting for us to bring them the customers qualified customers that's already paid.
So they understand that so we're not we're not getting any pushback.
Great.
Thank you and I didn't mean to be flippant about how great. Your quarter was it really was great.
Thank you so much we appreciate that.
Ladies and gentlemen, this concludes our question and answer session and thus concludes today's call. Thank you for joining fiber second quarter fiscal 2020 earnings call. You may now disconnect your lines take care.
[music].