Q3 2020 IZEA Worldwide Inc Earnings Call
Thank you for standing by.
This is the conference operator, welcome to the ideal worldwide Inc. third quarter.
Quarter Twentytwenty earnings call as a reminder, all participants are in listen only mode and the conference is being recorded.
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I would now like to turn the conference over to Ryan Schram, Chief Operating Officer. Please go ahead.
Good afternoon, and welcome to ideas Q3, 2020 earnings call I'm right Schram, Chief operating officer has the.
And joining me today is as <unk> interim Chief Financial Officer, Leann, Hitchcock, and I see a chairman and Chief Executive Officer, Ted Murphy, Thanks for being with Us.
Earlier today, the company issued a press release with details pertaining to our third quarter performance for 2020 if.
If you'd like to review those details.
Cole of ideas Investor information can be found on our Investor Relations website at <unk> zero Dot com forward slash investors.
Before we begin please take note of the Safe Harbor paragraph that appears at the end of the press release to cover the company's financial results and be advised that during the course of today.
His earnings call, our management team will discuss ideas business outlook and make forward looking statements.
These statements are predictions based on our teams expectations as of today that are subject to inherent risks and uncertainties and should not be unduly relied upon.
Actual events results or trends.
That's a different materially from our forecast due to a number of factors, including those mentioned in our most recently filed periodic reports with the FCC.
The company and our management team assume no obligations to update any forward looking statements made in today's call.
In addition, our update today will refer to certain key metrics regarding.
<unk> gross billings and non-GAAP financial measures regarding adjusted EBITDA.
Detailed explanation and reconciliation of these measures is disclosed in our earnings release and in our most recent form 10-Q available under STC filings in the investors section of.
Did I call.
Now with the appropriate disclosures out of the way I'm pleased to introduce my colleague and as interim Chief Financial Officer, Leann Hitchcock Yeah.
Thank you, Brian and good afternoon, everyone, let's begin with a summary of our results for the third quarter ended September Thirtyth.
For the three months.
Ended September Thirtyth 2020, I see you have reported total revenues of $4 million compared with $3.5 million coming from our managed service business and 522000 coming from our SaaS offerings, we saw a $44000 or 1% decrease in our managed service revenue and a three.
Hundred 31000 decline in our SaaS service revenue in Q3 to 20 as compared to Q3 2019.
Although there was the slight $44000 decline in Q3 2020 managed service revenue compared to Q3 2019, we were pleased to see revenue for managed services increased by one.
A million dollars or nearly 41% compared to our second quarter of 2020, which was greatly affected by the initial uncertainty surrounding COVID-19.
Larger concentrated marketers are beginning to spend again, but there are still hesitancy to spend amounts on typical annual events that may change as a result of COVID-19 uncertainties.
Such as back to school campaigns.
Despite the delay in the execution of existing orders from our customers. We have seen a slight increase in net sales orders in the third quarter 2020 compared to the second quarter of 2020 as marketers who are still advertising shifted more of their spend to influencer marketing campaigns.
For Q.
2020, our gross billings decreased to $5.5 million compared to $6.7 million in Q3 2019. This 17% decline in gross billings was primarily due to a 1.1 million decline in marketplace spend and license fees from our SaaS customers.
Due primarily to a turn in the renewal some.
Yes, its customers and curtailed spending as marketers paused and change their spending habits due to cope and.
19, uncertainties and other factors the reduction in SaaS gross billings resulted in the $331000 decrease in SaaS service revenue in Q3, 2020 as compared to Q3 2019.
Our cost of revenue exclusive of amortization was 1.7 million in Q3 2020 as compared to 1.9 million in Q3 2019.
As a percentage of revenue our cost of revenue exclusive of band realization has improved from 43% in Q3, 2019% to 42% in Q3.
2020, primarily due to the reduction in personnel and travel related costs on the fulfillment of our customer marketing campaign.
Our total cost and expenses were 5.3 million for Q3, 2020, compared with $5.6 million for Q3 2019.
If we exclude the noncash 794.
$2000 gain on the final settlement of our acquisition cost liabilities recorded in Q3 2019, the improvement between periods is more than $1 million as a result of the $200000 decrease in cost of revenue.
$61000 reduction amortization costs as assets were fully amortized in the quarter.
Fourth and over $700000 in cost reduction efforts affecting personnel software subscriptions rent travel and marketing expenditures that were cut due to cope with 19 operating changes.
We also saw reduced hosting costs by optimizing usage of our data hosting services after shutting down the tap influence technology.
Order platform in February 2020.
Our net loss for Q3, 2020 was $1.3 million or three cents per share compared to our net loss of $1.2 million or four cents per share for Q3 2019. Despite.
Despite the decline in overall revenues, we were able to improve adjusted.
EBITDA by $531000 or 42% to a negative $725000 in Q3 2020 compared to a negative 1.3 million in Q3 2019.
This was achieved through steps taken to curb spending during this period.
So.
To summarize although our team is working remotely and our internal business operations are fully functional we are still experiencing impacts from the outbreak of COVID-19 on our results of operations. We have observed changes in advertising decisions timing and spending priorities from our customers, which have had a negative impact on our revenue, but we have.
We've also found ways to reduce expenses and gain efficiencies in our internal operations to minimize the effect.
While the disruption is currently expected to be temporary there is a high level of uncertainty around the duration and the total economic impact, especially as marketers prepare their budgets for the future.
Between June and August two.
Only 20, we raised gross proceeds of 25.7 million through the sale of 13.3 million shares of our common stock under an at the market offering program registered on our shelf registration statement filed with the Securities and Exchange Commission.
As of September Thirtyth 2020, we had cash on hand of 30.6 million.
And with no amounts used on our $5 million line of credit.
We expect that our cash on hand will be sufficient to cover our operating needs for the next 12 months.
With that I will turn the call back over to Ryan.
Thanks, Brian.
Don't look the urgent drowned out the important.
These are wise words.
District, and temporary Marissa Mayer once said and it's particularly resonated with me and our team given the extraordinary events, we're living through and navigating as a business.
With the constant macroeconomic and public health tumbled at times each business day of 2020 has felt like a week each week.
In both.
And yet by focusing on the things we can control tumor IZEA has demonstrably better able to hone in on those important factors driving meaningful results, particularly during this third quarter.
A benchmark of successful businesses not just the new cost.
Customers that you secure but how well you retain and grow them over time.
At the start of the Cobot crisis cognizant of the broader market with Steve can be unpredictable into assisted from new business efforts art.
Our experienced professionals focused on expanded our existing client relationships aside.
Of those in key sectors, such as home Entertainment high frequency consumer packaged goods and direct to consumer E. Commerce that were bolstered by the pandemic and related stay at home dynamics.
Those factors combined with brands needs to redirect their marketing expenditures allowed as.
Actually to enjoy the benefits of having high impact campaigns within a medium such as influencer marketing that reach consumers outside of conventional approaches.
We believe that post pandemic. These changes in strategy could be long felt especially given how value is created in the well.
Xeon did strategic investment placed into the creator economy.
Compared to old expensive quarters of media, such as television or out of home.
Influencer marketing that only as more cost effective it delivers a longer lifetime value through highly measurable results.
So what happens when you pair the world class client service from as his team of professionals with brands, who want to take full advantage of the change in climate and the hottest social platforms, well for starters unprecedented scale and consumer engagement.
Recently.
The Nprs morning edition cited that the popular children's Youtube video and brainwashing Airborne Baby shark had become the platforms. Most viewed clip of all time with 7.05 billion views.
Not too shabby.
But here's the other part of the story.
The highly snackable and Shareable content on platforms, such as Ted talks are rewriting the rules of what is considered normal.
Shattering previous measurement record as a result.
Our clients realize this and they worked with our team for the direct to home release of Scooba, It's addictive.
Hi, Ted talked ads choreographed by phase Renegade Influencer July a harman has racked up 7.2 billion global views and counting since the campaign launch earlier this year.
As we look to 2021 and beyond the implications of short.
From photo and video based platforms, such as tick Tock, Twitch, Instagram stories, and others cannot be understated in terms of the potential results that can bring to bear for today's modern brand marketers.
These are not just core unquote kit apps the impact.
That is being seen in key advertising demographics, such as the desirable adults aged 18 to 49 bracket.
Another large trend the global impact of Influencer marketing on September 20, Onest as Vietnam, the formation of influence United The first global along.
Fans of its kind.
Historically, chief marketing officers have been hindered in their ability to receive cohesive multi continent concept in integrated strategy and investment approaches often having to waste time that in onboarding multiple vendors, who lack experience and steal a.
Ability required in today's trader autonomy.
Load was cultural nuances language barriers and contractual differences are also crucial considerations for each of these geographies.
So the influence United Alliance.
Institute, the stress out of globalization and streamline the.
A lot higher Executional journey from proposal to results for the world's foremost companies.
The alliance serves as the easiest way to execute a unified Influencer marketing campaign with trusted leaders, who are localized in presence, but global in scope.
In serving as founding member Isaac subsequently welcome other charter members influence United Alliance, including Brazil, all of the EU Latam flu VVIP India's chatterbox.
The Lions plans to introduce additional members in the coming months to round out a complete global.
Mobile footprint.
Already multiple brands have availed themselves of this exciting opportunity and we believe that will continue to increase over the coming years stay tuned.
On the operational front I want to quickly address something we had mentioned in her remarks earlier related to the substantial year over year decrease.
In our expenses related areas, such as rent and travel.
Our entire North American team has been in a virtual always stance since mid March base.
Based on the combination of guidance from public health professionals as well as internal surveying of our team members. Our management team has made the determination that all.
Of our personnel will remain working from home until the conclusion of the second quarter of 2021 at the earliest.
We consider ourselves to be extremely fortunate to serve a category whereby our ability to grow and function as a business is not impeded our day to day basis by not being in our.
Normal physical office locations.
Through a combination of solid planning and focused in our infrastructure being 100% cloud based the transition for our team members was largely a non event technologically.
That said, we missed seeing one another set for video conference.
Barnes and we can't wait to be able to travel to be with our clients in person once it's safe for everyone to do so without increased risk.
However, we value everyone's health and safety above all else I remain hopeful that by this time next year life will feel a lot more like normal again.
Until then our team remains subject to the various risks and uncertainties of the day related to the Tobin pandemic political and social justice issues to say, the least and while we've been largely able to circumnavigate those I want to stress, how something simple seeming as a social platform boycott can have a material.
Impact on us.
He is revenue recognition.
Whether it happens to be our expected delay their campaign or even so far as a cancellation for our brand clients, who choose to align themselves accordingly.
In those situations, we rely on our team's ability to leverage the company has extensive thought leadership reef.
Research and data driven insights to help to strive the best possible outcome for our clients.
But its something for shareholders to be mindful of as we continue down a path never forged before in the history of advertising.
For more details on that road ahead and to share some exciting announcement.
On other aspects of ideas progress.
I'd now like to turn the call over to my colleague and as the as chairman and CEO Ted Murphy Ted.
Thank you Ryan I appreciate the hard work that you Leann and the rest of team idea had put forward to continually evolve our company in these.
Fascinated times.
I'm excited about the progress and changes we have made and the positive impacts that they've had on the bottom line.
On our last call I spoke about the headwinds that we are seeing for enterprise SAS and caution that this line of our business would likely continue to face challenges.
Over the coming quarters.
While we have started to collect some enterprise wins again, the macro climate for enterprise Martech software is dramatically different than it was at the beginning of this year.
Marketing budgets have shrunk teams have been consolidated and many are taking away.
And see approach before making new long term commitments.
Fortunately I Xia has been focused on a much broader strategic vision for some time now and.
And we are starting to capitalize on some of the investments we have made to diversify and scale our customer base with a very.
Friday of revenue streams.
I see his vision has always been to connect the buyers and sellers, who drive the creator economy forward.
Our goal is for both parties to financially benefit by transacting and collaborating with each other.
During our shake streaming event.
Last month, I outlined the pillars of that vision and our intent to make Isaiah technology platforms available and affordable for the broadest base of customers possible.
I'm excited to share that we are making progress.
We continue to see growth with Isaiah X.
Scott Murray, our self service offering.
At the end of Q2, we shared that we had hit an all time record number of customers licensing our software.
Due to this credit card driven platform.
This trend has continued in Q3.
Hi, Zia ex discovery has seen.
Sparkle resilient since Cove. It as a result, we ended Q3 with the highest number of active software customers we've ever had.
As we take into Q4.
That number was best in October and looks to be on track to be bested here again in November.
Yeah, and Isaiah ex discovery license cost significantly less than our enterprise unity suite.
It is also a much different sales process.
Unity suite requires a demo from a sales person involves contracting with the legal and typically involves a customer procurement team as well.
The time to close can extend multiple months for an enterprise customer.
Discovery just requires a valid credit card and after visiting the website many customers buy the same day.
Discovery is inherently more scalable but.
But it also requires more customers to generate.
The same amount of revenue.
Long term, we would much rather have more customers, even if they are paying less per customer each month for our software.
As our mix of software customers continues to evolve we.
We may see near term decreases in software revenue, even though we.
At more active customers overall.
As we have evaluated the near term challenges with enterprise software sales as well as the opportunities with self service offerings. We have made some adjustments to our sales and marketing initiatives.
We have been investing much more aggressively in our marketing efforts.
We have broadened our customer base and drive self service revenue growth.
That includes everything from Influencer marketing to search engine optimization search engine marketing and paid social.
There was a material uptick in media investment that started in earnest in September.
And the results.
Its fair near immediate.
New sign ups fries, the X. discovery hit an all time high in October.
It was up 2.6 X. from October of last year.
Finally recurring revenue for IC ex discovery also hit an all time high in October and was up more than 25%.
From September of this year, which was the previous record.
The growth in Asia ex discovery is one of the reasons. We are so excited about shake.
Lower price points and shorter commitments dramatically widened our buyer universe.
And unlike the past we have significantly more capital.
Well to invest in customer acquisition.
While the primary focus of recent increased marketing efforts have been on self service. We believe there's also been a halo effect on our other offerings.
The number of enterprise SAS demos per day has been increasing.
And the dollar value of new opportunities.
The pipeline for managed services also hit a yearly high in October.
Early indications are that our marketing efforts are working.
And we believe there are ongoing performance optimizations to make each dollar we spend more effective as we gather more data.
To that end, we have ongoing multi variant testing and benchmarking in place in an effort to continually improve our marketing outcomes.
We've also engaged to advertising partners to help us measure test and experiment with creative new approaches.
Marketing spend will increase.
Crease in Q4 and moving forward.
It will include not only investment in paid marketing efforts, but also properly staffing to marketing organization for success.
We will be adding full time personnel dedicated to managing our social media.
As well as marketing automation in the coming months.
Not only have we made adjustments in sales and marketing.
We've also made some changes in engineering priorities to capitalize on the opportunity, we see with IC ex discovery shake and a general shift towards a much broader customer profile than ever before.
Our team at originally planned to.
Beliefs, IZEA ex 4.0, and brain graph 2.0, both of which are targeted at enterprise SaaS customers next month.
However, as we gain more insights over the past quarter.
We have made the decision to hold both releases until 2021.
Our leadership team came to this conclusion for four primary reasons.
Number one we are working our way through some growing pains.
We have never added this many engineering team members this fast to our development efforts.
Let alone completely remote and located around the world.
Well our employees reside in the United States.
We now have full time engineering contractors that act as an extension to our team in Brazil, Egypt, Nigeria and Kenya.
These global contractors, not only lower our engineering cost per team member.
But they need.
Enable us to expand our daily window of engineering operations.
The additional development Akyem and will provide us with an advantage long term.
But short term it is taking more time away from our most senior engineering team members than we anticipated.
Number two.
You want to deliver an even better experience for the new version of Isaiah acts.
There have been significant technology advances made by our data science team very recently.
These are next generation leaps forward utilizing neural networks to gain unprecedented new insights about.
Content and creators.
Our engineers need more time to get that data surfaced inside the platform.
Number three.
We want to push our enterprise focused software announcements past any post election noise.
We are hopeful that on the other side of the inauguration in.
Continued progress with Covance vaccine tests.
We will be better positioned to garner attention for marketers.
And they will be more comfortable in making larger software investments.
Number four and most importantly, we want to be able to cycle quickly on self service software improvements in order.
Peter to improve conversion and retention of customers.
Which brings us to shake.
Our new self service platform.
I have some exciting news to share.
Today is the day, we have all been waiting for.
Just a bit ago, we quietly turned.
And on the buy button for everyone on the shake website.
Anyone with a shake account and a valid credit card can now go into the marketplace search for creator and make a purchase.
In addition, today I zeal launched a broad scale influencer marketing.
Unpaid media campaign to drive traffic to some of the best individual shake listings.
We are incredibly excited about the people who have joined the platform to date.
And we can't wait to see how it grows over time.
Our engineering team has been releasing new updates on a near Dale.
The basis and the feedback that we have received from users has been incredible in helping US guide development of the platform.
This is day one for shake.
As we look to the future, we will be enabling more powerful search capabilities, turning on more categories and bringing more.
I see it data and insights to the shake experience.
This year has surely put to the test.
Global pandemic, a recession social media boycotts.
We've had a lot thrown at us all at once.
But this team.
Team came together.
Instead of retreating when faced with adversity.
We doubled down on efficiency.
And dramatically improved our operating margins.
We doubled down on innovation and launched two brand new products.
And we doubled.
More on service to drive Amazing campaign results for customers.
All despite the most difficult of circumstances.
As we look to close out 2020.
I'm immensely proud of my fellow associates.
And I hope our shareholders recognize.
That's just how dedicated and special this group of people is.
I'm also incredibly optimistic about the future.
The technology, we have just released and the other next generation capabilities that are just around the corner.
Thank you all for your support.
I would now like to open up the call for Q and a.
We will now begin the question and answer session. Thank.
To join the question queue remain press Star then one on your telephone keypad.
Where's your tone acknowledging your request if you are using.
MS Speakerphone, please pick up your handset before pressing and keys to withdraw your question. Please press Star then two.
We will pause for a moment as callers join the queue.
Our first question comes from Graham Hickman with Ladenburg Thalmann. Please go ahead.
Yes, hi, guys. Thanks for taking my questions. Just a few here if you could maybe talk about the dynamic of new SaaS customer like Theres been the decline in SaaS revenue, but you picked up.
Too fast customers as you broaden your scope.
Into the self service platform, if you could maybe talk.
I think about kind of how you see that evolving over the next call it year or what you see is the vision for that should we expect those customers too.
Kind of a land and expand approach or how are you thinking about that.
No.
Yes, the customers that they were talking about that we've been adding are primarily customers that are using IDXX discovery.
Yeah that platform retails for $149, a month versus our enterprise suite, which averages.
That.
In the mid two thousands.
So you need many more customers that are licensing the discovery offering versus the.
The unity suite offering.
Right now the.
The enterprise customers.
They are much more difficult sale for us.
It is a much slower process.
You are talking about longer commitments and.
No larger spends that really need to be made in order to warrant.
License for that.
So we think that thats going to likely be challenged here for the next.
Couple of quarters.
Where we're seeing the growth is to the lower price point.
And it's Frank.
Frankly, much easier for us to market that product.
And.
Add additional customers.
Because people are able to come in and use a credit card without any sort of long term commitments or.
The spending tens of thousands of dollars on licensing.
Got it yeah that makes sense.
And then maybe a follow up as you're talking with these customers and you've developed product.
Can you maybe talk about some of the lessons we've learned along the way in terms of what customers or are looking for to the extent you can.
But what have you learned that you've developed new new products kind of for a broader.
Yes.
Yeah, one one of the things that we're seeing right now is that marketers have very different workflows and ways that they are using influencers as as part of their overall marketing.
Khan.
Ben has certainly become a big part of that strategy, where brands are looking to use endpoints are content to power their own social handles or produce content for their.
For their website.
But every every marketer is different and the way that they're they're utilizing influencers.
Jonathan one of the things that we're really focused on is providing as much flexibility in our platform as possible. So the brands can really transact and manage their work flow.
In a way that makes sense for them.
And and in many cases that requires.
As us to kind of rethink.
The way that we've built out processes.
To allow customers to kind of jump in and jump out wherever they want.
Got it that's helpful. Thanks.
I'm back.
Thank you.
Our next question comes from Mike Jeffrey a private Investor. Please go ahead.
Hello, everyone.
My question is for less than morphine.
I have a few questions. The first one is that.
Reason that I call today's because I'm really very.
Very much concern about the revenue decline.
Quarter after quarter, and then also stock price.
And I think that idea has been.
Business update for eight years.
Well maybe longer.
And the price off.
His stock has come down from $500 in 2012 to less than $1 today and.
And that's really concern you very much.
I wonder that what the management, including effect from this and more fee.
You have done to bring up.
Price of guys.
Stock because I think that the investors are very unhappy with the stock price and I know that you are working hard to management is working hard I understand that but the thing is that if it's not working then maybe you should add.
Some business.
To your business, Okay, such as you know hot businesses, such as you know to keep to currency block chain I know that in January of 2018. Your intention was to get into that business and you announced it and I remember that that day.
Price off I see I start when forum for Donna.
No 50 cents to close to almost eight dollar almost double so it seems that Wallace three is really liked the idea of you getting into trip for currency block chain.
So what was the reason that you change your mind shortly after and at that time I remember.
That depends Glenn prices was about 10 11000.
So what was the reason that at that time, you wanted to get into that business.
And now do you feel that it is.
Better time to get into that business now that the price of the bitcoin is over six.
Intelligence, which is much more than.
Two years ago, and and some experts are predicting that the prices of the big when it might reach 250000 in the next two three years.
So do you think that you might get into cryptocurrency.
Well, our can business in the near future and if not why not and why did you wanted to get into that business three years ago, and then I have another question.
I appreciate your question Yeah, we we've already addressed our.
Concerns with.
Ah cryptocurrency you know.
There are still a lot of unanswered questions about crypto.
And that ultimately we made the decision to focus on our core software.
And it's not something.
That we're going to revisit at this time.
Thank you.
Once again, if you have a question. Please press Star then one.
The next question comes from Andrew Hana, a private Investor. Please go ahead.
Hi, guys doing I do intend hopefully.
If its okay with you will just focus on right now and into the future I don't know about that last yet.
But I had a quick question is in regards to shape I believe it's unique I think as unlimited potential. My question is what are the team's plans.
Now and in the future, obviously, we want to get as many high profile people onto the platform as possible I know that's.
No. That's obviously the goal, but what plans as it does the team have.
To.
Acquire more people and get them onto the shake platform getting more eyeballs on it and.
Good and get that moving of course as fast as possible, which I'm sure. We would all like that's it. Thank you.
Thank you that is a great question and I appreciate that.
You know that is that is really what the marketing initiatives that we're kicking off today are all about.
We are.
Writing with an Influencer marketing campaign that we're managing through through Razia Acs, we're supporting that with paid media paid search.
And.
Our our intent is to really focus our marketing resources on both shake and an idea ex discovery for the fourth.
Seeable future, we're really trying to drive as much self service revenue as as we can.
But I do want to address one of the things that you brought up in that.
Our focus for shade is not necessarily.
Bringing on the highest profile.
Steam board or the biggest Influencers, who may command tens of thousands or in some case hundreds of thousands of dollars for for a single post.
We love working with those Influencers in our managed services business, but those are not the types of.
Costs are those are not the types of influencers that are going to.
Provide a lot of value to the platform in terms of actual revenue.
It's pretty unlikely that someone is going to come in and spend $50000 through their credit card.
To to hire one of these.
For answers.
Really the sweet spot that we see is somewhere in the 1500 to 2000 dollar range.
Yeah, that's really where we're going to focus on adding the most influencers that that we can.
And then recognizing to that you know there are a lot of nano influence.
Serves and microwave influencers.
That.
That can also transact on on the platform and provide us a lot of volume as well.
Okay, and if I'm. If you can still hear me I also so what kind of what as far as what about a brand ambassador I mean have you ever considered.
Something like that I understand exactly what you're seeing makes perfect sense. We are trying to get the common man and woman onto the platform and obviously, we all know social influence. He is on the rise is just tipping the skills I mean, we understand that there's a whole generation of young men and women that are just coming up and that's who we're trying to get onto the platform and building you know they're gonna grow themselves.
Elds and maybe God knows how much they're going to grow but what about as far as have has there ever been any thought by the team on maybe getting somebody just with a little bit high more high profile just to attract attention to the platform itself and just kind of put out the word that you know what this is what it is its social influencing we are.
This is the new way to market, which we all know this is in the advertising business. This is the sector to be in and to try to grow has there been any thoughts on possibly getting somebody like that like a.
Somebody who can you just repeat the brand and say you know what this is whats social influencing it and for people that aren't doing it to.
Make them aware that this does have potential and this you can actually make a living whether it's a side hustle whether you grow into something that is just this is your career is just to kind of have somebody rip shaking and set it aside and put you know shake on a pedestal and that's it I'll leave it at that.
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Thank you so much.
That that is certainly something that we have a disgusting and as you know potentially on the table, but I'll tell you that our our primary focus is really on a larger group of ambassadors that that we can engage in an.
Ongoing way and what we have found for our our customers and in doing need these transactions over the past 14 years is that.
That that power middle really drives the value.
You know the the largest.
One servers are certainly exciting to work with and and those deals get a lot of attention, but when you look at the.
The cost per engagement the cost per click and the value that is driven by an individual influencer campaigns that you.
Implies large groups of people tend to drive the most success for the brands that we're working with so.
So that has really been our strategy that's.
That's not to say that we might mix it might not mix it up like we do for for many of our customers.
But right now, we're starting with a larger group of them.
Last years.
Fair enough. Thank you I appreciate your time.
Thank you.
There are no questioners in queue.
This concludes the question and answer session I would like to turn the conference back over to Ryan Schram.
Ran for any closing remarks.
Let me just thank everyone for joining us this afternoon and as a reminder, all of ideas Investor Relations information can be found online on our website at <unk> Dot com forward slash investors.
Thank you.
And for joining US please stay safe and stay healthy we'll talk to you soon.
This concludes today's conference call you may disconnect. Your lines. Thank you for participating and have a pleasant day.
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