Q4 2020 Yelp Inc Earnings Call
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Please note. This event is being recorded I would now like to turn the conference over to James known Senior Vice President Finance and Investor Relations at Yelp. Please go ahead.
Good afternoon, everyone and thanks for joining us on yelps fourth quarter and full year 2020 earnings conference call.
Joining me today, <unk>, Chief Executive Officer, Jeremy Stoppelman Chief.
Chief Financial Officer, David <unk>, and Chief operating Officer, Jed Nachman.
We published the shareholder letter on our Investor Relations website, and with the SEC and hope everyone had the chance to read it.
He will provide some brief opening comments and then turn to your questions.
Now I'll read our safe Harbor statement.
We will make certain statements today that are forward looking and involve a number of risks and uncertainties that could cause actual results to differ materially.
Please note that these forward looking statements reflect our opinions only as of the date of this call and we undertake no obligation to revise or publicly release the results of any revision to these forward looking statements in light of new information or future events.
In addition, we are subject to a number of risks that may significantly impact our business and financial results.
Please refer to our SEC filings as well as our shareholder letter for a more detailed description of the risk factors that may affect our results.
During our call today, we'll discuss adjusted EBITDA and adjusted EBITDA margin, which are non-GAAP financial measures the.
These measures should not be considered in isolation from or as a substitute for financial information prepared in accordance with generally accepted accounting principles.
In our shareholder letter released this afternoon, and our filings with the SEC each of which is posted on our website you will find additional disclosures regarding these non-GAAP financial measures as well as historical reconciliations of GAAP net income to both adjusted EBITDA and adjusted EBITDA margin.
And with that I will turn the call over to Jeremy.
Thanks, James and welcome everyone.
While 2020 was a challenging year for Yelp, our mission of connecting people the great local businesses has never been more relevant in.
In addition to helping local businesses stay connected to their customers during the pandemic, we completed of business transformation.
I am proud of the significant progress made on our long term strategic initiatives by all of our teams under extremely difficult circumstances. We achieved this progress through an elevated pace of product innovation, delivering more functionality and value to both consumers and businesses in our local communities.
Yelp continued to demonstrate its relevance to consumers as a source of trusted reviews and content in.
In 2020, Yelp reviews maintained solid year over year growth as our users contributed nearly 19 million reviews.
As a complement to our valuable review content, our product teams rolled out a series of COVID-19 features that enable local businesses to communicate up to date information to their customers highlighting updated hours and health and safety measures.
While our consumer traffic remained below 2019 levels at the end of the fourth quarter and we saw a slight decrease in activity during the winter the positive trends we observed over the summer as Covid cases declined gives us confidence that engagement will return organically as more people are not related and restrictions ease.
Well, it's still quite early Covid case counts nationally are once again falling and in early February we have seen signs of more consumer activity.
For business is navigating the restrictions of the pandemic, we launched multiple offerings to drive more value in new ways, we launched the new profile product Yelp logo and scale of Yelp connect a quick and easy way to share updates with customers to approximately 75000 locations by the end of the year as part of a bundled offering for multi location.
<unk>.
We continue to differentiate the home and local services experience and further enhanced our request for quote close and advertising matching technology.
This helped to increase the percentage of monetize leads in the home and local services category driving of mid single digit percentage increase in category revenue year over year for both the fourth quarter and full year 2020 for.
For those businesses and categories, particularly hard hit by the pandemic, we extended approximately $37 million of COVID-19 relief in the form of waived advertising fees and free products and services in 2020.
Despite the difficulties the local economies faced over the last year. We are pleased that our efforts resulted in strong improvements in the retention rate for non term advertiser budgets. This increased by 13% year over year in 2020 and ended the year up approximately 25% year over year in the third and fourth quarters.
Operationally, we accelerated our go to market mix shift towards multi location and self serve.
Both channels have historically exhibited superior revenue retention characteristics compared to local sales and as a result, we believe overall revenue retention and profitability will continue to improve as they make up a greater portion of our advertising revenue.
After making the difficult decision to reduce the size of our local sales force by half in April we continued investing and business facing products to drive more of our revenue through our self serve channel.
Sort of revenue returned to year over year growth in the third quarter. As a result, then accelerated to nearly 25% year over year growth in the fourth quarter ending the year as of mid teens percentage of advertising revenue overall.
As we look to the year ahead, we are first and foremost focused on building on our recovery in the second half of 2020 to establish sustainable growth momentum and capture more of the large opportunity in local advertising too.
To achieve this we plan to invest behind our key strategic initiatives. These include growing services revenue through improved monetization accelerating our growth through our self serving multilocation channels and delivering more value to advertisers through our offerings of advertising platform.
We believe the yelp is more important than ever to consumers and local businesses with the structural changes we've made to our business and a robust product roadmap planned out against our growth initiatives. We are confident in our ability to drive profitable growth over the long term with that I'd like to turn it over to David.
Thanks, Jeremy we entered the fourth quarter with considerable uncertainty around the impact that rapidly escalating COVID-19 cases would have on our business.
Notwithstanding broad based shelter in place orders and increased restrictions, we continue to see impressive year over year improvement in revenue retention in.
In addition, paying advertising locations for their increased from the third quarter to reach 520000 in.
In the fourth quarter of <unk>.
Decline of just 8% year over year.
As a result, net revenue reached $233 million.
A 13% year over year decline.
Our revenue performance combined with continued expense management enabled us to deliver $21 million of net income and $60 million of adjusted EBITDA.
This represents the 26% adjusted EBITDA margin and demonstrates the potential leverage in our model are lower than expected expenses were principally the result of lower than forecasted head count we have increased our operational focus on hiring outside of the Bay area.
With nearly an entire year is a fully remote organization. We are confident in our team's ability to maintain productivity. We're working from home as a result, we plan to continue operating with the more distributed workforce, which we believe will enable us to expand our presence in lower cost markets and reduce our real estate footprint.
During the fourth quarter, we re initiated our share repurchase program as of February nine we had deployed of $49 million to repurchase approximately one 6 million shares and an average price of $31 34 per share.
We currently have approximately $220 million remaining under our share repurchase authorization.
We plan to continue our share repurchase program subject to economic and market conditions are.
Our cash balance increased modestly from the third quarter to $596 million at the end of the fourth quarter.
Turning to our outlook, we anticipate the first quarter net revenue will fall between $220 million and $230 million.
In addition to ongoing COVID-19 related headwinds it is important to recognize that our first quarter net revenue is typically lower than our fourth quarter due to seasonality.
On the expense side, we plan to invest in our growth initiatives. This includes increasing our product investments as we focus on opportunities in self serve and our services category.
While we have gained efficiency in our local sales channel, we intend to invest selectively in our multilocation sales team and in performance marketing to support our self serve channel.
As a result, we anticipate that first quarter operating expenses will increase from the fourth quarter with first quarter 2021, adjusted EBITDA between $20 million and $30 million.
Turning to the full year, we expect 2021 net revenue between $985 million and just over $1 billion at 10 O five.
We expect overall economic activity to increase from the second half as the virus abates in the economy recovers, but do not anticipate the full recovery for the U S economy before next year.
We expect 2021, adjusted EBITDA will fall within the range of $150 million to $170 million, reflecting margin improvement from the first half for the second half.
With our planned investments in our product and engineering team in 2021 continued execution on home and local services monetization and the strengthening U S. Economy. We are focused on achieving mid teens percentage annual revenue growth in 2022, as well as adjusted EBITDA margins exceeding 20%.
The structural improvements to our business model driven by our transformation, we see significant opportunity for margin improvement over the long term.
I also wanted to mention that we have the introduced new key metrics in our Q4 and full year 2020 shareholder letter to reflect the transformation, we have made to our business as well as what we believe will be the key drivers in our next phase of growth.
We've provided three years of historical data in the shareholder letter I look forward to reporting on them in our first quarter earnings call in closing, we believe we're very well positioned as the economic recovery continues we look forward to building our revenue momentum and strengthening margins as Covid receipts later this year with that operator please.
Open up the line for questions.
We will now begin the question and answer session to ask a question you May Press Star then one on your Touchtone phone.
Of our using a speakerphone please pick up your handset before pressing the keys to withdraw your question. Please press Star then two at this time, we will pause momentarily to assemble our roster.
The first question today comes from Colin Sebastian with Baird. Please go ahead.
Alright, good afternoon, and thanks, everybody have two questions for me please.
One at a higher level with the recovery in your business clearly evident and as we look ahead now to produce strong growth can you clarify the drivers of that from a from an advertiser point of view is it is it a larger share of wallet for advertiser, whereas at the broadening of the platform to attract the larger number of average of advertisers.
And then and then secondly, a bit more granular regarding the number of products offered on the on a bundled or subscription basis can you just give us a sense for the portion of advertisers or budgets that are that are being monetized. This way. Thank you.
Sure I can take that question. This is that this is jed speaking so and in terms of the drivers going into next year.
It's really a combination of both expanding the footprint and adding more local businesses.
As well as.
Driving the retention.
Component of our of our business you saw really strong trends over the course of 2020 on the retention side, we saw a 25% improvements in the fourth quarter.
This was driven by.
Really product innovation number one we were able to introduce new products into.
Into a bundle we just started bundling and connect we have yelp logo that was introduced and.
Yeah.
We revamped our business owners' account into a kind of a more modern design with reporting and analytics included.
Things like an AD impression heat map.
And so that continued innovation, where we have kind of a long pipeline to go from a product perspective, we will continue to drive growth I think if you also look at the channel mix.
We're seeing continued momentum in both self serve as well as the multilocation segments of the business and we believe we're really well positioned in both of those areas going into into 2021.
In terms of the second question.
On.
On the percentage of of profile of products that we end up monetizing its about a three to one ratio adds to profile products.
And that's great day, we're able to go monetize those but we also see of benefit on the retention side of bundling those in and so the more value that we can offer kind.
Kind of what's the complete package, we see that driving growth as well.
And I guess, just adding to the the first part there I'd also call out.
The increasing monetization on the services side, we've made progress there with 20% of.
Of our lead to monetize but we see a deep well of ideas and product enhancements to keep moving that up in the right direction.
Thanks, guys.
Sure.
The next question comes from Andrew.
<unk> and <unk> Securities. Please go ahead.
Hi, guys. Thanks for taking the question I've got two please so one just in terms of the rebound that you guys saw and <unk> more recently can you talk about that and just kind of how broad was that what sectors was that can you help just quantify it a little bit and the number two on the product side I think you rolled out new AD objectives and keyword targeting.
Late last year can you talk about uptake here and just the extent that it's improving ROI for advertisers. Thank you.
Okay.
So I can take let me take that second one for US. This is this is Jed speaking.
We.
We have out of control features over the past couple of years and we have such a broad client base that we're seeing uptick certainly among certain segments. When you kind of look at that mid market segment. They tend to want to have more control of their advertising campaigns things like service offerings and the ability of the negative keyword target.
And.
There is still some road there in terms of the other features that we can add to that.
And the.
On your question around rebound I think they are probably talking about traffic trends.
If you go back to the summer of 2020, as we saw virus counts decline, we saw traffic recover pretty substantially and so that gives us a lot of confidence in how this is all going to play out as we got towards the.
At the end of the year virus accounts took off and we saw some modest impact to consumer activity people get scared of restrictions debt in place and so they start transacting and going out and about and doing their business.
One thing that gives us some encouragement.
More recently as we look at trends in early February and credit there. That's it's early days, but virus accounts as many of you probably have followed of started declining.
Pretty dramatically in.
In recent weeks and so we are seeing a pick up once again.
Consumer activity, but it's still early but that gives us some confidence so that kind of play out pretty consistently across the year.
Thank you.
The next question is from Lee Horowitz of Andrew.
For ISI go ahead.
Great. Thanks for the question the two related ones if I could give you the impressive new product cadence you you've seen recently can you help stack rank some of the most important products for should be thinking about in 'twenty, one and 'twenty two from a strategic perspective in terms of reaching the revenue goals and similarly can you help us maybe bifurcate our thinking in 'twenty one.
And 'twenty two as it relates to the the mid teens growth.
Between the drivers of the CPC and click growth anything there would be helpful. As well. Thanks, so much.
Hi, Hi, Lee I'll try and tackle the first part here. So as we think about revenue growth driven by product Theres, a few buckets that we focus on.
I mentioned earlier, which is increasing monetization primarily by better monetizing our late so we have tremendous organic traffic and we currently only monetize particularly in the services home and local services category for only monetize the about 20%. So that gives us a lot of room for better matching.
Enhancements to our AD targeting a request a quote matching algorithms. There's just a lot of under the hood kind of enhancements that we can do there that we've done before we were familiar with these obviously theres new technologies. We can later on but we have a long track record confidence behind these product initiatives. We also want to continue iterating on self serve and Multilocation providing.
New tools store Multilocation team new products to sell into that segment and then on the self serve side, it's about ironing outflows reduce the friction provider.
Providing new features and functionality like some of the profile of products, we've launched the bringing people into the seltzer flow.
And allow them to transact on their own which actually flow has been into retention, which is the really big lever is we're constantly talking to thousands of business is all the time and when we bring them in the best thing. We can do is keep them in and so it's really about delivering more value to our advertisers at the end of the day. If they are spending money with us theyre feeling of Pos.
<unk> ROI, both just in kind of the intangible theyre seeing stats in metrics that make them feel confident but also of the most important things of our business is doing better I think that's going to deliver value over the long term and that's going to deliver the outlook that we put out for for this year and beyond into 'twenty two.
And Lee this is David just to follow up on what Jeremy was saying one of the reasons that we have shifted the metrics.
Very much is to reflect the.
The points that Jeremy just made which is.
By delivering more value to advertisers by providing them with more clicks.
Ed.
Better CPC is not only do they does their business do better, but we see higher retention and so our expectation is over the year, we will see a rebound in clinics with the overall recovery of the business.
Equally important though as we continue to invest on the product side, we think that we can continue.
To improve on matching and we also think that by bringing new AD format that we can really deliver additional value that both benefits advertisers as well as consumers. So both of those the metric actually goes hand in hand with the strategy that we are.
The point.
Great. Thanks, so much.
Well the question is from.
The bank. Please go ahead.
Hi, Thanks for taking my question.
Maybe just starting within the services business. As you guys were slightly ahead of where you were a year ago on revenue, but still behind on pad locations versus <unk> 19, just curious if we should be thinking about this.
The Delta here on the on the business locations side is are these business closures or are there still pockets of prior advertisers that returning off of <unk> for seasonal reasons.
That yes, werent turned off from <unk>.
<unk> and then within the restaurant and retail.
Retail and other segment.
Maybe just looking back to 2019, Pete can you talk about like what the driver was there for average revenue per location the decrease and if that's how we should be thinking about what's the.
Is there any sort of mixed dynamics going on there that we should be aware of as you bring in new locations that are driving that average monetization down. Thanks.
Yes, I can take.
Take that first question around paid locations. So we're down total free up about 8% year over year from a from a P&L perspective.
And that is up 38% from from kind of the Q2 lows during kind of.
The depths of the pandemic.
And we see very behavior amongst different sets of customers certainly we've been strong in the services on the service locations side one of the things we were really happy about is the fact that we give.
<unk>.
And we're able to maintain relationships with a lot of our customers both on the multi low side as well as the the local side and.
And some of those folks came back, albeit maybe at a more tepid level, but we were able to keep that relationship and anticipate that we'll be able to continue the kind of drive monetization from from a on a per location basis.
And then on the second one David you want to take that.
Yeah, absolutely. So one of the things that is an important dynamic as we.
Look at average revenue per paying advertising locations is the mix between our Multilocation partners vs R.
SMB customers and so what we've seen over time is that we've been increasing the number of multi location advertisers that are with us as the share of <unk>.
Paying advertising locations and so that has an effect on the amount that they are paying I think the really important takeaway of overall is that we do see overall that we have an opportunity to drive paying advertising locations. Both the cross services.
As well as restaurants retail and other equally important as we think that business the overall.
From a monetization perspective relatively stable in the near term and so what we're really focused on doing as we've been talking about is to continue to drive value to these advertisers and continued to see improvements that we've seen from the retention perspective.
Yeah.
Got it thank you.
The next question is from the Bakken Patterson of Keybanc. Please go ahead.
Great. Thank you very much could you talk about the drivers of request for quote growth more it sounds like there were some product elements behind that that provided a benefit but I'm curious if there are any other.
Signals you could point to that were driving that healthy acceleration from Q2, all the way into the Q4 and then looking at that more broadly of toward the monetize leads the service business. It is.
How should we think about just the drivers of monetizing that more going forward. Thank you.
Alright, Thanks for the question Justin.
So on request a quote growth, there's a lot of different components there.
As we continue to build out the flows and functionality.
We do see good consumer demand and we have a large audience some of which may not be familiar with request a quote. So I think just helping educate our consumers on the fact that this flow exists for this experience exist from the fact that can solve the problem really quickly.
It's one element there Theres also category expansion. So we're constantly looking to see what categories can we add a request for quote experience to them by tailoring it for that specific vertical for us.
Also matching so we have an algorithm when you submit that is trying to match it with the best business as possible, we continue to refine that and the worst thing we can do as the center.
Ill provide a match where it's not relevant for that business can't services et cetera, because that's essentially the wasted opportunities for the more efficient we get at that.
For the less leads we can essentially waste, which just creates inventory of essentially out of thin air.
The combination of a whole bunch of those factors Theres a lot of.
Future growth opportunity ahead of us and opportunities to refine the product growth algorithm equally in just in the funnels the drive consumers into the flow.
And then your second question was around monetize leads how can we.
How can we continue to move that up do we have a runway there I think the answer is yes, 20%, we do feel very confident that there is a long runway there.
And we do have this large audience.
By providing things like the request for quote experienced merchandising it better better AD units better AD targeting Theres a long list.
AD related features and functionality that we will continue to plug away on it.
We now have a multi year track record of making improvements and driving up the monetize leads percentage. So we feel really confident about that and how it how it feeds into our 2021 plan and beyond.
Great. Thank you.
Sure. Thanks.
The next question is from Trevor Young of Barclays. Please go ahead.
Hi, Thanks for taking the questions two from me for.
First you mentioned the experimental bundling with connectedness and piece of the advertising can you just give us like an illustrative example of how much of a discount is offered and what are some of the initial learnings from this and when do you expect to roll it out more broadly and then two on what seems to me maybe the longer term potential cost savings on the lower average cost per employee as you shift away from.
Of the Bay area as well as some of the real estate leasing in Subletting initiatives, how much of that is baked into the 2021 guide or is it just more of kind of of long term.
Opportunity. Thank you.
Yeah.
Alright. Thanks. This is this is jed I cannot kind of tackle the bundling.
Bundling is something that we just started to really get into in earnest and the beginning of the fourth quarter of this year.
And really the driver of there was lets give as much value as possible and.
Try to drive on the retention side and so across the breadth of our profile of products and whether you look at portfolios or the yelp logo or business highlights or connect.
Making it one of those things of that kind of hard to say no to as youre going through the the checkout flow and the impact provide a lot of value and trust for the consumer as well.
If you look at some of our less established businesses. As an example of this is an opportunity for them to tell their story.
To be away from reviews as being the driver until they're able to kind of buildup of reputation and so we're still very early stages. The on the connect bundling.
And from a pricing perspective, we give enough of the discount that it is going to drive it.
It's going to drive somebody over the line, although we're continuing to kind of experiment with where that that that perfect kind of match from a pricing perspective is.
And Trevor this is David just to follow up on your question around expenses.
So in terms of our employee base one of the things that we are very focused on is hiring outside of the San Francisco Bay area.
And we will moving forward would be working on a much more distributed basis. So that enables us the higher across the U S. We've also been hiring.
In Canada, particularly in the Toronto area and in the U K.
So that's something that's going to play out over several years.
And then in terms of our <unk>.
Real estate expense.
We do spend of about $50 million of year on real estate at the beginning of 2020, we had.
<unk> 6000 employees.
And at the end of the year, we were just below 4000.
And then many of them are going to be working on a distributed basis, which means they're either always working from home or only come in at the office of.
A few days of week, so we definitely see an opportunity to compete.
Compress are.
Real estate footprint, but that's going to also take a little bit of time to play out. So in terms of 2021 outlook. The only have a modest amount of savings coming this year as we go through the process of.
Uh huh.
Adjusted how much real estate, we have so that will start to show up more in 2022.
Great. Thanks.
The next question is from the gala around noon of Wedbush. Please go ahead.
Hey, guys. Good afternoon. Thanks for taking the questions I have a couple of follow ups on from there.
The other questions just on the from the <unk>.
Dynamics of the paying locations being down.
8% I wonder if we could dig in a little bit more into maybe the the varying degrees of strength or weakness across the board.
What's kind of the strongest in what's what's the growth there and what's been the weakest and what's what's the the the decline there.
I would think that.
Quick serve restaurants are up a lot they've seen a lot of strength there.
Done well in the <unk>.
So that's that's the first one and then on request a quote.
Curious what Youre seeing is some of what we're seeing in the market is.
Service providers being pretty busy in that capacity and dialing back some of their ad spend.
Seeing similar dynamics and I know, you're you're monetize leads is up 20% and I was just wondering how of that is factoring in for you guys on request a quote.
Sure I can tackle the <unk> question.
Certainly.
We've seen strength across home and local.
Across the year relative to other categories and that would kind of fall in line with what you would expect.
You think about categories like salons in MISO.
Massage studios kind of down the line of things that require physical contact and we certainly seen a drop in those areas as well as restaurants obviously.
So I would say the dynamic is we're really.
Relatively speaking still pretty strong on the on the home and local side and multi local also has its own.
As dawn piece in terms of the recovery you have quicker of which you mentioned, which is really thrived in this environment environment, albeit in the.
Different way, which of your retail with buy online pickup in store and what we've really tried to do is partner with these multilocation business is and kind of provide a solution that they need and the new normal.
So we have seen a recovery of npls on the Multilocation side from the from from the second quarter through the end of the fourth quarter and as the economy continues to reopen we expect depending on the pace.
Different categories come back in a in a stronger way.
And then on your second question I think what you're getting at is the consumer demand in home and local services are our business is in those categories advertising at healthy levels and I would say, we continue to see solid demand for advertising.
This is in those categories.
And I think as you can see by the progress on monetize leads like we're capturing those leads we're selling them. Our sales force continues to sign up.
New service pros.
So it looks pretty good to us.
Thanks, so much.
Sure. Thanks.
The next question is from Eric Sheridan of UBS. Please go ahead.
Thanks for taking the questions and happy new year to the team maybe.
Maybe a couple of when you think about your broader goals for self serve and multi locations sales over the long term how should we be thinking that against the backdrop of which verticals the different approaches to the market just sort of the unlock of depth of advertisers that can drive continued momentum on the platform or is it just across the entire breadth of.
The advertisers when you're thinking about putting functionality on top of what you were trying to solve for on a broader of revenue based on when we think about the recovery.
Obviously, you guys did amazing work in terms of it's something small businesses and given credit and things to add people stay on the platform how should we be thinking about the breadth of growth in advertisers. When you look out to 'twenty, one and 'twenty. Two is the reflection of the recovery versus just the depth of spend for advertisers that you take by the.
Evolves as the recovery of evolves. Thanks, so much.
Hi, Eric This is Jed I can take the first one in terms of of the different goals for the different channels I would say as a broad based statement.
One of the advantages of the Yelp is that we are of horizontal platform and we have a lot of consumer traffic that is looking for local businesses across all sectors.
Okay.
Certainly you see some from some differences amongst multi low versus local.
Where.
Strong and growing retail business as an example in the multi low segment, whereas that may not be as prominent and.
And the small local businesses.
We're going to continue the kind of.
It really drive across all categories, but as we've talked about before.
Services the industry, specifically has a ton of upside for us if we can get the monetization correctly and continue to deliver more value for those folks.
Hey, Eric It's David So let me talk a little bit about your question.
Which had two parts to it I think the one was how do we see the dynamics playing out cross category the cross categories.
And then the second is for.
From a.
Revenue per paying advertising locations.
How do we see that playing out across categories as well.
So let me take the second for.
<unk>.
And what we do see is that there is a difference in what advertisers are willing to pay broadly speaking on the services side of our business versus the <unk>.
Restaurant retail and the other side of our business and so.
That's one element and then the second of course.
As we want to really see expansion with our multi location advertisers.
Whereas for our single location of SMB customers.
There is the less expansion opportunity and that's where the bundled product.
Really comes in so what we want to do of course is to continue to provide increasing the opportunities for services business is to derive value and especially on higher ticket items, where they see the value of the advertising and are willing to pay more for those.
<unk>.
Say compared to the restaurant retail and the other side of the business.
One of the things that is important and one of the reasons that we've broken out the new <unk>.
Operational and financial metrics for you is that you can start to see those dynamics play out between these.
These two broad sets of categories for us and as you could see from a revenue perspective.
We saw a tremendous amount of compression in restaurant and retail and other and so as the U S economy recovers honestly, we will want to participate in that recovery could cross broadly those categories of the services side.
We feel like we've been able to support home and local services business is quite well and have continued to see demand. There. Some of the other categories that fall into the services has seen more of an impact.
From the slowdown in the U S economy. So we would expect some pick up there and then just the closeout on.
Revenue per paying advertising locations.
Alright, sorry to closeout overall, we see an opportunity both across categories as well as opportunities to see.
In pockets of opportunity to increase how much we earn per location.
That's great. Thanks, so much for the color and thanks also for those disclosures I appreciate it.
Having no further questions.
Our question and answer session. The conference has now also concluded. Thank you for attending today's presentation. You may now disconnect.
Okay.
Yeah.