Q2 2022 System1 Inc Earnings Call
soft launch our brand new cash back shopping program and already have over 500 participating merchants.
We also began integrating the coupon follow coupon data with our Start Page search engine, and we expect to further integrate this data throughout our network of O&O properties.
And finally, on answers.com, we fully migrated the site to our tech stack and have seen an immediate 30% monetization lift.
We also started sending paid traffic to answers.com. Early signs are really positive.
And we remain active in the M&A front and are evaluating a few interesting opportunities.
As always, we're looking for strategic deals where we can inject growth into the companies via RAMP. While we are not bargain hunters, we do expect that overall market conditions could lead to lower pricing for acquisitions.
Now, I want to move on to our business performance, with the advertising business overall was solid in Q2.
Our owned and operated business was in line with expectations, including our volume of marketing spend.
And our partner network, which has been flat the last couple of years as we focused on owned and operated, is showing accelerated growth.
This is a result of ramp improvements we have made to support that business, combined with excellent execution by our partnership team.
The one negative in our advertising business was a one-time occurrence when advertising networks in its fraudulent traffic.
Beginning earlier this year, we began scaling our marketing spin with the Microsoft Bing Partner Advertising Network.
However, in June , we discovered that we had been paying for fraudulent traffic that did not convert for our advertisers.
The fraudulent traffic went undetected by the most sophisticated compliance programs in the world, including the largest ad networks and our own system.
This was an exceedingly rare occurrence and we have identified the publishers responsible for the traffic.
A tree is going to go into details of this event during his remarks.
Despite this setback, our relationship with Bing remains strong. In fact, today we're happy to announce a three-year extension of our strategic partnership with Bing that's going to go through 2025.
We look forward to putting this episode behind us, scaling back up our marketing on being, and continuing to work very closely with them in the future.
Looking towards the rest of 2022 and advertising.
We're starting to see some of the same macro trends reported by our peers in the digital space.
In our case, we're starting to see advertising demand soften towards the end of Q2 and particularly the beginning of Q3. In our case, we're starting to see advertising demand soften towards the end of Q3.
Typically, demand is lower in the summer months, the market resets downward in July , and then bounces back towards the end of summer. This July , the drop is more pronounced than it has been in recent years, and the market is recovering more slowly than typical.
We believe this is due to inflation-affecting buying habits and potentially from increased summer travel.
While we do have the ability to get more aggressive on the buy side during a downturn, we've decided to stay a bit cautious so far this quarter.
We're keeping a close eye on the ad markets and are beginning to see things stabilize and rebound as they always do.
As the market moves, we are shifting marketing to the most in-demand verticals and increasing our buy-side efforts on native and social networks. And as we are continuing to push our international expansion.
Now moving on to our subscription business, we saw nice performance in Q2. We continue to see improved retention and upsell metrics from our Flagic Antivirus product or A-V.
We added 319,000 new subscribers and more than a hundred thousand from our newer total ad lot product. We also launched a new product, a browser booster, which is a browser extension that speeds up a user's browsing experience. And we have more products set to launch later this year.
The subscription team continues to be focused on retaining existing customers, opening new customer acquisition channels, and launching new products. The team is doing a great job, and I'm really excited about our near-term and long-term opportunities in subscription.
Overall, we remain very bullish.
We're going to keep investing in product and engineering, and we do not expect our investing to slow down. Our management team has been through macro headwinds several times, including 2008 and of course the onset of COVID-19 in 2020.
Each time we have invested through these cycles and each time it is paid off.
Times like these are when the diversification of our business model really shines.
As areas like online shopping dip a bit, other advertising verticals like consumer finance open up.
And at the same time, digital advertising overall is facing headwinds, we're seeing opportunities open up in our subscription business.
So, while we are keeping a close eye on the short-term macro trends, we are playing for the long term. nature tradition and managing macro trends.
I'm confident in our technology advantage, our diversification, and our long-term growth story.
I'll now hand things off to Tridi to discuss this quarter's results and updated guidance.
Take it away, Treaty. Thanks, Michael. As previously mentioned, we are excited about the results we delivered in Q2.
and despite any short-term headwinds we might see for the rest of this year, we remain very bullish about the business.
To start, I wanted to provide more color on the fraudulent traffic issue Michael mentioned earlier.
Since Q1, we have been significantly growing our marketing spend with Microsoft's Bing Advertising Partner Network.
Latent Q2, it was identified that this network was sending System 1 material amounts of fraudulent traffic.
In plain English, we were paying for clicks that were generated by bots, not humans.
Our analysis shows that these fraudulent clicks originated from websites owned by two large publishers on the Bing partner network.
IAC, and CBS Interactive.
As a result of this fraudulent traffic, our revenue was impacted by $11 million.
which is the amount refunded to our advertising partners.
The impact of gross profit, net of any refunds received from Microsoft in Q2 of 2022, was $6 million. Microsoft Office Word Document MSWordDoc Word.Document.8
In this specific event, while Microsoft has acknowledged the fraudulent traffic and issued us a credit, our analysis shows that we have not yet been made whole.
This type of event is rare, and even more rare is the advertising network not providing a full refund.
Our data strongly shows that we are due an incremental ad credit from Microsoft, and we are committed to pursuing all avenues available to us to be made whole.
As a result, we've added back the net impact of this issue in our reported adjusted gross profit and adjusted EBITDA metrics for this quarter.
Before diving into the rest of our Q2 results, I wanted to start with a reminder of our operating philosophy.
Gross profit dollar generation is the ultimate metric we use to measure the effectiveness of our ramp platform.
We see RAMP as the key to growth by enabling more marketing spend and driving operating leverage through optimizations.
Also, when I talk about our financial performance,
specifically year-over-year results.
In every case, I will be referring to pro forma financial metrics inclusive of protected.net's results in prior periods.
For a reconciliation of these metrics to our GAAP financials,
please refer to the reconciliation tables in the earnings release issued earlier today.
Let's move on to Q2 results.
Revenue was $220 million as compared to $206 million last year.
A 7% year-over-year increase on a pro forma basis.
Adjusted gross profit was $74 million, an increase of 31% compared to last year's pro forma gross profit of $56 million.
with all segments of the business contributing to that increase.
A JESCED EBITDA was $41 million versus $34 million last year and above the high end of guidance by $3 million.
In general, similar to what we've seen in moments of dislocation in the past, as advertisers pulled back overall spend, the last dollars they pull are in the pay for performance categories, where RAMP excels. One that tightly puts away the good bad press.
We were able to take advantage of this trend in Q2, ahead of the larger macro pullback for the back half of the year.
and it lends further validation to our business model and the platform in the long term.
On the advertising front, we acquired over a billion sessions to our owned and operated advertising properties in the quarter.
reflecting a 32% increase year over year.
Our cost per session was 12 cents.
with corresponding monetization of 16 cents per session.
which maintains our spread of four cents sequentially and represents a spread of 35%.
Excluding the impact of the fraudulent ad traffic issue, our cost per session was 11 cents and our spread would have been 42%.
Our network advertising business also delivered a strong quarter with revenue up 52%, network RPS at 41% and network sessions of 8% year over year.
Overall, advertising revenue less advertising spend was up 21% year over year.
The subscription business performed well with revenue up 19% and segment profit up 26% year-over-year.
We continue to benefit from the shift to renewing customers and our ability to retain and upsell the large total AV user base.
subscriber ARPU was $20.17 in the quarter versus $18.76 last year.
Total subscribers were up 1% sequentially and 5% year over year.
Change in deferred revenue, which represents the delta between gap subscription revenue and billings, was $3.5 million in the quarter.
In our guidance for the year, we assume change in deferred revenue remains flat, with a similar seasonal spread through the quarters as last year.
Operating expenses net of ad backs were $32.5 million for the second quarter of 2022.
compared to 21.7 million last year.
The year-over-year increase is reflective of our continued investment in RAMP, increased headcount from our transition to a public company, and increased public company costs.
Operating expenses as a percentage of adjusted gross profit was 44% for the second quarter of 2022.
compared to 50% last quarter.
With respect to liquidity, we ended the quarter with $37 million of cash on the balance.
Gross debt was $444 million, which includes the $49 million Revolver drawdown to finance the coupon follow-up acquisition.
As of June 30th, LTM Billings-based EBITDA, as defined by our credit facility, was 159 million, resulting in a net leverage ratio of 2.55 times.
We plan to actively pay down the revolver via our operating cash flow in the second half of the year.
Now, onto guidance.
Through the first six weeks of Q3 and consistent with the earnings announcements of our peers, we have seen a significant softening in the advertising market driven by the macroeconomic environment.
Despite the choppy start to the quarter, we believe the current trends are temporary.
We expect advertising dollars and volume to come back to the market and consistent with historic trends We expect those dollars to come back first to performance-based advertising platforms
As we've seen in the past, when ad markets rebound, we've historically seen acceleration in our business.
Our overall views on our business model remain unchanged. Our management team has been through many of these cycles in the past.
Our guidance also reflects the financial impact of the marketing we previously had planned to do with Bing.
Due to the fraudulent traffic issues I discussed earlier, we currently have materially reduced our advertising spend with Bing.
Because this is a higher volume but lower margin business for us, the result is substantially lower gross revenue combined with higher gross margins.
Additionally, we are seeing several pockets of new subscriber growth in our subscription business.
While this is very positive, the short-term effect of increased customer acquisition is upfront marketing spend ahead of increased renewals and profitability next year.
As a result of the combination of these internal trends,
Coupled with macroeconomic trends we discussed earlier, we have determined it is more appropriate to provide full year guidance versus specific Q3 guidance.
This gives us the flexibility to pull acquisition levers as we deem necessary to take advantage of new sources of subscriber growth.
We will provide an update on both of these trends during our next earnings announcement.
For the full year, we expect revenue to be between $900 million and $930 million, representing 10% growth at the midpoint.
Adjusted gross profit to be between $285 and $295 million, representing 36% growth at the midpoint, and adjusted EBITDA to be between $155 and $165 million.
representing 26% year-over-year growth at the midpoint.
Our lower revenue guidance reflects our currently reduced marketing send with Bing, as well as our conservative view on buy side spending as ad markets stabilize.
The adjusted EBITDA guidance reflects a forecast of limited recovery in the macro environment, as well as our desire to maintain optionality to increase customer acquisition spend through the end of the year.
Finally, I'm excited to announce that our Board of Directors has approved a repurchase program for both common shares and public warrants of up to $25 million.
This program reflects both the company's and the board's confidence in our business model and platform.
I want to reiterate that while the macro conditions have caused us to reduce our full year outlook, we view this as a temporary change as markets stabilize.
Ultimately, this is a business that's going to conservatively grow gross profit by more than 35% and EBITDA by more than 20% at the low end of the range.
We have a proven platform that thrives in these environments and a plethora of opportunities in front of us.
both organic and via M&A.
We are excited about our prospects and foolish about the opportunity.
Thank you for joining us today and now let's go to questions.
Thank you Tridi. We will now go to live Q&A. The first question is from Shweta Kajaria with Evercore ISI. Shweta?
Okay.
Hello, I guess I have two questions. First is, so with Bing, it sounds like you are pulling back on Spence, would you offset that pullback by diverting that to perhaps Google or someplace else? And if not, why not? And second, as you said, you're staying cautious on the buy side, but if you are managing to gross profit dollars, then I would imagine that,
you know, you're sort of optimizing it for gross profit. So if there's.
I'm trying to understand why your gross profit annual guide would be lower if...
the spread remains the same.
Yeah, sure. So, I'll handle the first question, Shweta. Good to see you. And then, Treedy, the second. So, related to our Bing spin, yeah, we pulled back substantially in that network, almost to zero. We are watching it very closely so we can get confidence to kind of scale back up on the Bing side. And our guidance does reflect not scaling back up.
with Bing, although we hope to be able to. In regards to moving, moving, spend around, think of Bing as just another source for us. All of our other sources, we are, you know, continuing to maximize as much as we can right now. Market's been pretty choppy and volatile for the past few weeks. Certainly it reset pretty heavily in July , as we mentioned. And we are seeing things stabilize a pretty good amount the last couple of weeks.
But we didn't want in our guidance for guidance to count on that. But we are seeing some green shoes I would say in the market. And sure you want to handle the second question? Sure, really just piggybacking off of what Michael just said. The choppiness in the ad markets really is what's driving the cautiousness both in our guidance and just how we're operating in the marketplace right now. So while we are maintaining that spread, our algorithms as advertisers are moving in and out and demand is moving around, it takes us some time to kind of learn.
Our next question comes from Victoria James with DA Davidson. Victoria, please go ahead with your question.
All right, thank you for taking my question. So I have one question and one follow up, but I will ask them one at a time.
So my first question then is how should investors think about systems' ability to take advantage of the disruption in the digital advertising market such as with Apple's focus on privacy and then Google eventually removing safety.
Yeah, yeah, thanks, and thanks for calling in. So, yeah, we do like disruptions in the marketplaces. So, in terms of, you know, things related to the Apple changes and, you know, things getting more private, that's good for our system. We, July was actually pretty volatile overall. It was pretty similar to, I would say, April 2020, when the ad markets had a pretty big reset.
right around when COVID hit. So in that case, and if you go back to April 2020, we stayed in market pretty heavily and had in April , had a pretty down April in 2020. We learned from that experience. And so when we saw the, particularly the pay-per-click markets reset in July , we decided to be much more cautious this time.
So I think that answers your question. If I could just add to that, Victoria, just two other points. One is we did have, as those markets, as the advertisers started to pull out of the market towards the end of Q2, we actually had a really good Q2 in terms of, as we saw ad spend really kind of retreat to the performance marketplaces where ramp shines. And secondly, just, I think you mentioned specifically kind of Google going cookie lists. That's also kind of to Michael's point, another place where we expect our platform to really outperform.
in 2008 or 2020. Can you talk a little bit more about what is allowing you to outperform during those times of market downturn?
Yeah, so our system is set up to take advantages of dislocations between markets. We, you know, think of what we're doing specifically on the advertising side. What we're doing is we're typically buying on one market and finding, you know, a place to sell on the other market to advertise at a higher price. And so as markets are moving around and, you know, like display markets, if they're dropping and pricing and pay-per-click markets are increasing.
we're going to move heavily into display and sell to our pay-per-click providers. In this particular case, that's how things work normally, 99 percent of the time. In this particular case in July , specifically the first four or five weeks of the quarter, what we saw is pay-per-click markets overall in almost every category that we're in became depressed.
relatively quickly when the markets reset in July . And then on our buy side, we saw a bit of, we've been seeing a bit of volatility. And kind of as I mentioned, we don't need, we don't necessarily need up markets or down markets. We can take advantage of our spread in most markets, but we do look for some level of stability that allows us to figure out the out verticals that are going to be most profitable for us. And also the buy side and sell side places that are going to increase our spread the most.
So anyway, and we have history of doing this and, you know, most recently was 2020, where that was a dislocation like, you know, no one's ever seen before. And, you know, we stayed in market. It took us about, you know, six or eight weeks to kind of, you know, figure out, you know, where the pockets were, and, you know, as I said, we're starting to see that. We did not put, we really based our guidance off what we've seen so far in the quarter..
And, you know, our guidance is also combined with, you know, as we've mentioned, we're seeing some pretty good pockets of opportunity on the subscription side to go in and acquire customers at larger scale while maintaining our cost to acquire goals.
The next question comes from Matt Schindler with B of A. Matt?
Hey guys, thanks.
A couple of questions.
One, and I think you've been touching on this the whole time and everybody's asking about it, but more explicitly, because you're in both the buy side and the sell side of any advertising transaction.
how quickly can your systems learn so that you can protect profit in advertising recession? And do you think as long as you're given some time to figure it out, that you could actually maintain the same level of profitability regardless of the macro movement as long as it isn't too abrupt?
And I have some other poll questions.
Yeah, no, thanks for joining. Yeah, no, so we have historically over, you know, since really since our founding, been able to maintain that spread through good markets and bad markets. We're looking for stability. As I said, we're starting to see it in the markets on the advertising side. So yeah, we're highly confident. Treaty, you know, reported good spread. We're continuing to see that on our advertising side. So, but what we have, what we've been is a bit conservative.
As we were seeing the markets fluctuate with the quarter reset, we decided to be a little bit more conservative, but we're still maintaining spread as we always have. One kind of just interesting little tidbit, which has affected us more on the – where you're looking at our total revenue projections. We play on the desktop and mobile are two major areas where we play. On the desktop side –
We're seeing a bit of reduced consumer queries, particularly commercial queries on desktop. Desktop is a higher revenue, lower margin business for us. So you see that play out in our numbers with lower projected revenue, but margins going up. But that's just kind of an anecdote that we're seeing. We think it's because a combination of both people having more normalized work schedules, but also particularly this summer.
We believe travel is affecting that as well. People are traveling not in front of their desktop computers and doing more searches on mobile.
That's actually very interesting because that goes into my next question. I wanted to ask why in particular BIM you described as a higher dollar, lower margin business.
I'd assume that's compared to Google, which is the obvious compare for Bing. Is that because what you just mentioned, that Bing is not playing very much on mobile, and mobile tended to be lower dollars, higher margin.
So, so being would shift would be a little bit more heavily desktop where we specifically were scaling up our business with being was was more on the desktop side. So so as we scaled that back, I mean, we had we had scaled that pretty heavily since since around the middle of Q1 rolling into Q2 as we as we pulled that back. You know, we still have some buys going on being.
just to make sure that we're highly confident in the quality of the traffic coming from there. As we pull that back, you're seeing the immediate effect because that was a heavy desktop business for us. And you know, Ken, as I mentioned, that's why we're bringing down the, you know, our total revenue guidance substantially, but you know, Eva does, you know, come down just a little bit.
From this earning season, a pretty severe decel from the socials, from talking to the DSPs, they saw things go down in connected television and the like. Can you give any more just overarching thoughts about where in the online ad landscape things are being impacted, where dollars are shifting and how quickly and how you see this coming out, given that you're kind of...
playing across the world? Yeah, so I would say two different areas. As I said, at least our view on the kind of CPCs and performance advertising, those look to have been pretty relatively depressed from what we would have expected. We mentioned in our earlier remarks, when things always reset in July , our systems are ready for that.
you know, it's really almost at the end of every quarter, when literally the next day rolls into Q1, have markets reset, and then they kind of over the first month and a quarter, you know, generally tend to rebound. We saw things
rebound much more slowly. And so we're seeing that on the sell side, that's primarily where our revenue is coming from is the pay-per-click marketing side.
We're seeing a little bit more depressed consumer queries. So that's not gonna be a long term. Over the long term, obviously, people are using the internet more and more. Specifically, as we're rolling towards the end of Q2 and early in Q3, it looks to us, and now we don't have a perfect view of the entire market, so this is our view of the market.
it looks to us like commercial query volume was a little bit lower in general. And what we would suspect, and we flagged this in our remarks, we suspect that's a combination of certainly on the shopping side, we've seen things be depressed. There's probably some macroeconomic headwinds in there.
where we think that it has something to do with a bit of increased summer travel as well, which would have a natural effect. You hear a lot about revenge travel this summer. So we're seeing things just a little bit depressed on the consumer side as well. But that said, as I mentioned, as summer's kind of starting to get to the end of summer and maybe consumers are feeling a little bit better.
about things, we're starting to see things stabilize.
I think one thing to add there is that we kind of mentioned the remarks as well, but we think the advertising dollars when they do come back following those consumer queries, they'll come to the performance marketplaces first. And that's certainly as we looked at some of the stabilization we've seen in kind of recent days or weeks even, that's what we're seeing as well.
So again, we feel pretty well positioned to take advantage of that as it kind of returns.
And the last thing I would say, you know, we get a lot of, you know, we get a lot of, always get a lot of discussion about the advertising side. On the subscription side, things are opening up for us a bit. So, you know, I can give you some real-time data. You know, our July customer acquisition was, you know, materially higher than our June customer, you know, number of customers acquired. So, you know, that kind of points to the, you know, what we consider to be the beauty of our diversification. So, you get the advertising side being a little bit depressed.
We went through July was super choppy. Things are going to stabilize on advertising. Our system figures it out and can kind of exploit where the pockets of profitability are. But also
macro advertising being down makes us a more effective advertiser on the subscription side. So we've got that nice balance as well.
We will now go back to Victoria James for our follow-up question.
Thanks for taking my follow-up here.
So my question is, with valuations just kind of down across the market, can you give your updated thoughts on future M&A?
Yeah, thanks. So, we are remaining active in the M&A market. We think there's a lot of opportunities out there. We're maintaining our discipline. We haven't seen valuations, you know, it's kind of like, it takes a little bit of time for sellers to adjust to the new normal. So, we're being a little bit conservative. We're only going to do M&A that we have a, you know, very high level of confidence is going to be.
creative and we can inject growth into it. But we are seeing people, companies that normally, let's say weren't as interested are coming back and unsolicited inquiring with us if we're still interested in deals. So we're starting to see the market move a little bit. I mentioned in our earlier remarks, we're not discount buyers, so we're not trying.
we like deals that we're highly confident we can inject growth into.
it's feeling to us like valuations are coming down a bit. And hopefully that'll be reflected when we do buy, when we do our next M&A that it'll come in at perhaps a lower price than it would have four months ago.
The next question is from Dan Kurnos with Benchmark.
Hey, great. Thanks. Michael, good to see you guys.
To your point on subscription, maybe we can just talk through a couple things here. So I guess maybe we can also parlay it to the O&O business as well. You guys have always thrived when there's been disruption in the marketplace.
And while obviously that's not helpful to your advertising business at the moment, can you just talk a little bit about sort of tech trends and sort of what you're seeing and if you're able to kind of toggle that right now. And Michael, you say that July customer acquisition description is good. Obviously, your product fits into a different niche or this market then
maybe some of the plus guys or some of the really expensive guys that are out there that are seeing some sub challenges and if we go towards a recession you know getting consumers to sign up I know it's really more an art beam for you but you know just help us think through your ability to kind of continue to grow through you know any economic pressure on that.
Yeah, sure. So, I think there's a few questions in there. So, you know, we've got a mix of products at this point. We've got our Total AV product, you know, which is our flagship.
That's starting to, you know, I wouldn't say that's hitting maturity, but that's starting to hit the point where, you know, it's going to be leveling off and we'll be kind of reaping the profitability from that. We've got our total ad block product, which we mentioned is achieving really nice scale. And then we've got another product that we released in Q2 that we mentioned, actually another product, which is going to be coming out here in the next couple of weeks.
And so, for us, you know, we haven't seen, you know, any consumer kind of macro headwinds, you know, start to affect our business. In fact, as, you know, as we're finding pockets of opportunity for increased customer acquisition, we are not, we typically are not going to go bring down our CAC on that. What we're going to do is buy, you know, acquire as many subscribers as we can at an acceptable rate.
leave ourselves some room both on the advertising side, we're making assumptions, pretty conservative, relatively conservative assumptions that the market's not going to recover. We're basing our forward-looking advertising on what's.
you know, the quarter so far, but we're also leaving ourselves room for increased customer acquisition on the on the subscription side and you know, I think everybody on the call knows how that works on the customer acquisition side because we're paying upfront for the subscribers. That typically is going to come at a negative EBITDA for this year and then increase the growth for next year. And so our guidance for this year, you know
We want to give ourselves some cover in case the opportunities we're seeing right now continue throughout the entire year. And if I could just add, I think, Dan, you mentioned kind of CAC trends in general on the subscription side. So we did see CAC go up in Q2 over Q1. That's really a function of the trends that Michael talked about, which is specifically on the ad block product. We're seeing really nice kind of LTV specifically. You recall we launched that product at the beginning of last year. And as those annual renewals are coming in and we're continuing to see the monthlies.
very bullish on kind of the return profile, the LTV to CAC metrics that are there. And so, you know, per Michael's point, you know, we're willing to take up what we're gonna spend to get those customers in because the return is there. So that's kind of what's driving some of that upper trend on the CAC that you're seeing.
Great, got it. That's helpful. And then just a quick follow-up. Yeah.
And I apologize if this was asked earlier, but around international, like EMEA CPMs continue to be pressured by kind of what's going on. We all know what's going on. And APAC has been probably a little softer, but it's not quite as bad maybe as EMEA in some pockets. I know international, we talk about it sort of on the fringes, but just help us think through in this market again, disruptions, opportunity, challenges.
We've talked about it a little bit. Thanks. Yeah, we're continued. We're very bullish international. We are not seeing any, you know, I know some of the other advertising based companies have talked about international challenges. We continue to see the opportunity there. We're not changed. That's also an area where we haven't talked much more. We haven't talked much about our new platform that we're moving to, which is substantial upgrade from where we are now, our ramp platform.
early data on there, which we're, you know, we can't promise anything yet because it's, you know, we're talking very early data. That's an area where international looks like it's got increased opportunity via some, some technical upgrades we've made on our platform.
At this point, there are no further questions, so we'll turn it back to Michael Bledin for closing remarks. Okay, well, I want to thank everyone for taking the time to join us today. We're happy to announce our Q2 earnings. We look forward to you joining us again in Q3. We're very proud of the team for executing on our initiatives in Q2. We are very happy we've got a diversified business model that carries us through these times. We've got.
opportunities on advertising and opportunities on subscription as well. And look forward to speaking with you again in Q3. Thank you.
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