Q4 2022 Roblox Corp Earnings Call
Yeah.
[music].
Good morning, My name is Brent and I will be your conference operator today at this time I would like to welcome everyone to the roadblocks fourth quarter and full year 2022 earnings conference call.
All lines have been placed on mute to prevent any background noise.
After the Speakers' remarks, there will be a question and answer session. If you would like to ask a question at that time simply press star followed by the number one on your telephone keypad. If you would like to withdraw your question again press Star one thank you.
Stephanie I know Tony you May begin your conference.
Thank you good morning, everyone and thank you for joining our Q&A session to discuss world, what Q4 and full year 2022 results with me today is robots co founder and CEO , David <unk> and CFO , Mike Guthrie before we begin I wanted to remind everyone that earlier this.
Morning, We published a shareholder letter and earnings results on our Investor Relations website at IR Dot worldwide.
On this call we will make some brief opening remarks and return the rest of the time for your questions for our webcast participants. Please note. The question icon at the bottom right of your screen, where you can type in your question, we will do our best to take as many questions as possible in the time, we have a lot of today on today's call we may be making some.
Forward looking statements, including but not limited to our expectations of our business future financial results and business and financial strategy forward looking statements are subject to risks and uncertainties that could cause actual results to differ materially from those described in our forward looking statements such risks are described in our risk.
Factors included in our SEC filings, including our annual report on Form 10-K, and quarterly report on Form 10-Q.
Should not rely on our forward looking statements as predictions of future events, we disclaim any obligation to update any forward looking statements except as required by law. During this call. We will also discuss certain non-GAAP financial measures reconciliations between GAAP and non-GAAP metrics for our reported results can be found in our press release issued this morning as well as in our <unk>.
Supplemental slides copies of which can be found on our Investor Relations website. Finally, this call is being webcast. The webcast will be archived on our IR website. Shortly afterwards with that I'll turn the call over to Dave.
Thank you very much and.
And welcome team welcome Mike.
It's a pleasure to be here and welcome to the robust community and welcome to all of our investors.
We continue to focus on innovation and we are.
Very pleased with our results from Q4 and the early signal on Jan January .
We have enormous headroom in our business, we have the whole company focused on one product one platform and in the midst of.
A fair amount of turmoil over the last year, we continue to hire and build an amazing team with amazing people.
We're focused on our core growth vectors, one is bringing people together all around the world. One is expanding our platform to encompass people of all ages.
Our third growth vector as we continue to see expansion into education into concerts into communication and finally, our economy is vibrant and growing as we will share in our call.
A couple of details Q4 bookings $899 million up 17% year over year or 21% on constant currency and highlighting this as around the world, including U S, Canada and APAC each at 19% growth in Q4.
Some slight acceleration in 'twenty, two going into 'twenty three with December 20% year on year January 21% year on year and this is highlighting our global growth in January with Europe , and APAC up 29% year on year.
For older users, which is an enormous opportunity for the platform sometimes referred to as the aging up this is not a new thing for US we are in the middle of the aging up and in January we saw our 2017 through 24 year old segment at 39% year on year.
Year for bookings.
Going into usage and to US we are proud to report that in January we had our highest ever via use at $65 million due.
In Q4 do you use continue to show really strong growth Europe , 24%, APAC, 21% U S and Canada up 19% in Q4.
Amazingly well not really amazingly because we're so focused on innovation, we bird almost no cash in 2022, roughly negative 0.5% cash, which we're really really proud of.
On adjusted basis in Q4, our EBITDA was $183 million or 23% of bookings.
I want to highlight that underneath all of this progress we focus very heavily on key drivers around sign ups retention frequency engagement and monetization and all of these numbers continue to be near or at all time highs even as we've emerged.
From Covid.
Long term, we remain singularly focused on assuring in this new category of members of communication and we continue to see what we believe are the benefits of this new category as we start to rollout voice and facial animation, including the ability for people to be virtually.
In the same place as they communicate the ability to pick up many cues around human interaction, including eye tracking arm tracking, which we don't sometimes pickup on the phone or a video call the ability to stimulate more and more of the audio that we see in the real world.
It helps our communication and finally of course, what everyone does on roadblocks. In addition to communicating doing things together.
This vision, we think has enormous headroom for us if you've been with us on our Investor day or some of our calls at our D. C. We believe this is the next generation of communications following from audio and video calls texting messaging.
Behind the scenes on our innovation stack Theres a lot of metrics that are moving that to our average user are invisible, but are very very important go side by side with our innovation, we're constantly making improvements in the performance of all of our App.
<unk> in the speed at which people can connect to roadblocks experiences.
The performance of our cloud around the world and the performance.
All around the world as we rollout new edge data centers.
Course, the more visible.
Parts of our innovation continue to be visible as well.
We continue to rollout voice, we've had over 1 million experiences so far enabled voice chat and as we continue to roll. This out we're very pleased with the adoption and the level of immersive. This that this is broad.
We talk about dynamic heads and facial animation because we're in the middle of this rollout.
But we believe very soon we will assume this is just a core part of roadblocks and we will stop referring to dynamic ads it'll just be part of an active avatar. This is the same with layered clothing with over $100 million 115 million people adopting layered clothing. So far this will transition to just being called the clothing.
Just among roadblocks and finally, we are well on our way.
Believe we passed 90% of our catalog now being UGC, we're well on our way to that being 100%, including all of the avatars on the system as well and finally, we are really pleased from a safety and stability standpoint to have rolled out experience guidelines in Q4, which is good.
Really just continuing our vision of building a platform for all ages around the world.
Active developers are up 33% year on year. We've had 70 experience has now passed the 1 billion visits at the end of 2022 brands continued to come to roadblocks. As this is a new form of bringing people together with brands we are proud to.
<unk> welcome the NFL.
Netflix and of course, Elton John variety of carry we have a lot more coming in 2023, and something really near and Dear to my heart just given my prior company was an educational software company, we're really proud to see institutions like the museum of science in Boston.
Start to rollout large immersive educational efforts such as their mission to Mars.
<unk> interactive experience.
Finally safety and stability as a foundation for US and we were really pleased to be the first tech company to support the landmark child safety legislation in California last year called the California age appropriate design code and we're hopeful more states will adopt that.
With that will either turn it over to comments unless Mike has something to chime in yeah. Thanks, David I just wanted to add a couple of thoughts before we open it up for questions.
As it relates to cash flow as Dave mentioned.
We did.
Continue to take an investment posture. This year, we were really happy to see high returns on those investments.
And to see margins coming back into the business really driven by topline growth.
We spent over $400 million.
Over the course of the year investing in infrastructure.
Primarily related to our data center in Ashburn, Virginia, and still were able to run the company effectively cash flow neutral for the year, which was a goal of ours internally.
Capital expenditures related to infrastructure will be down significantly in 2023 somewhere between 25% to 8% lower this year.
David also mentioned our focus on on frequency engagement and monetization I also just want to point out we had incredibly strong results and you can see it in our supplemental materials around payers on the platform. So in the fourth quarter.
We reached an all time high of $13 4 million Payors.
Highest amount of returning payers that we've ever had which means obviously people are sticking with us which is great.
And we added more new payers in than ever before with the exception of the very first quarter of Covid. So we had incredibly strong growth in payers and at the same time the monetization prepare in the fourth quarter.
<unk> was up significantly and as strong as it's ever been we're also seeing very very healthy what we refer to as payer conversion. So.
More users are becoming payers than ever before and that's pretty much true across the globe. Each each individual region is reaching its peak.
And payer conversion they did at least over the holidays and so when we look at that on a seasonal basis that looks very strong so.
Again, as Dave mentioned, a great end of Q4, a nice start to 2023 and why don't we pause there and open it up for questions.
At this time I would like to remind everyone in order to ask a question press star followed by the number one on your telephone keypad. Your first question comes from the line of Omar <unk> with Bank of America. Your line is open.
Hey, guys. Thank you for taking the question.
Everybody is talking about chat GPT, it's being apps of all the big companies.
So I wanted to ask how does the availability of this new technology, maybe accelerate or not your timeline.
Towards inexperienced creation tools.
And what proprietary datasets do you have that could break through.
<unk> specific that could create breakthrough domain specific applications.
Using the GPT three models.
A great question.
This is a wonderful area, there's going to be a blog posts from our CTO, Dan Sterman coming out tomorrow sharing really the wide range of the opportunities that you can imagine the ml will accelerate and stuff that we've been working on for quite a while.
Thank you the whole roblox virtual universe, we can of course imagine could acceleration and the amazingly large set dataset of low code.
All of our creators.
Built on the platform that sits in our cloud that we can accelerate of course, we can our model.
<unk> model acceleration.
And something very near and Dear to the heart of every player on roadblocks as their own personal avatar traditionally avatars.
Been created in many many ways, including mixing and matching parts.
Moving sliders, but we're going to see more and more.
Range of innovation around the avatar creation does much more natural and natural language space creation and behind the scenes. In addition to this there is another wide range of opportunities around customer service around how mpc's perform around the performance of search and discovery.
Around the creation of <unk> material. So there is a drilling many many ways, we're going to harvest and tap into ml here, we have a lot of data and feedback from our users and standby and read more please on Thursday.
That's wonderful Okay. We're looking forward to that reading that blog I guess.
Just for a follow up on a separate question.
You've talked.
About.
The kind of transition.
Talked about the transition to a limited items.
Economy and exclusively limited items economy on roadblocks.
Just wanted to hear how your thoughts have evolved on on that and what you think the timing might be whether that would be phased or if it's already in progress and when it would would kind of be complete.
Also I guess.
As part of that process.
So will you still be.
Having items created primarily by UGC creator program or will.
Will it become open.
By the time of the completion.
To the general public and the general user base.
I'll share the long term vision youre going to see pieces of this rollout throughout the year.
Long term the real physical world. There is no constraints on who can create the items that we use in our everyday life new people can enter that market at any point in time, and we have a wide range of pricing and activity in the real world. We have generic items like White T shirts, we also have very expensive items like.
Gucci purses.
We're working as quickly as we can to mimic the range and expressiveness.
Commerce, we see in the real world and potentially go beyond that so this is actively under development, we're moving to a UGC economy, where there is no limits, where everyone can participate and were robust doesn't make everything anything really our community mix all of it where the economy is very.
Vibrant where more and more creators can make a living creating items on robots and we have a wide range of pricing that makes economic sense. So look for more and more things during the course of this year and more and more innovations that mirror, how the real world economy works in a virtual world like robotics.
Thanks, Omar we're going to catch up with you in about an hour we're going to move to the next caller. If that's okay. Thank you.
Thanks.
Your next question is from the line of David Karnofsky with Jpmorgan. Your line is open.
Thank you Dave on the prior call I think you mentioned that 77% to 24 year old users were mostly monetizing in the top experiences but we're.
<unk> with some of the aged up experiences. So wanted to see if you could update on this whether those older users are starting to migrate further to the mature content and what opportunity that presents for next year and then Mike just on expenses there was a real moderation in cost growth quarter over quarter for R&D and infrastructure. Just wondering if you could kind of discuss how are you.
Thinking about investments for those Opex lines in 2023, and if that growth pace. We saw in Q4 is kind of reasonable to assume going forward. Thank you.
I'll give a general highlight when we say mature experiences on roadblocks as of now with our experienced guidelines. We do not have any 17 enough experiences. So the experiences on roadblocks or are nudging in that direction, we are seeing more and more things.
I would say are exciting for older players.
It's interesting that the horror genre in <unk> has really picked up in the last three or four months experiences like doors and others have become very very popular many of the experiences on robust even for all their players.
Cover all age ranges as well and just as in the very early days of roadblocks, we saw that the market really respond to the opportunity of that player.
Base, we're seeing that with our game fund as well, so theres more and more aged up content showing up on the platform.
And so yes, and David on on costs.
Maybe just back up a little bit we really if you look at our cost.
There's really four primary areas of cost of the business. The first one is of course, Cogs and payment processing, which is.
More or less strictly variable, though has been coming down as a percentage of bookings primarily because we've been really successful with prepaid cards and other alternative payment methods that are lower cost so.
So thats one the second one of course is the investment in the developer community and <unk>.
In a sense, we have been leaning more heavily into that we think that the returns are now we're seeing those returns in more content that our content, which has historically been a part of the flywheel, that's driven roadblocks for years and.
In a way the savings and margin that we've seen in Cogs is more or less moved into over the last few years and to the investment in the community, which we think is great.
Those are variable and the fixed cost side, it's in infrastructure and people as you rightly point out.
We've made a lot of investment in human capital over the last few years.
This year, we will.
We are slowing down the rate of hiring but we're still hiring quite a few people are making a huge investment in in great engineers, we still need them. We still have ambitions that are that are large and in a lot of work to get done. So we're going to continue to make that investment, but we are we are slowing that down just slightly over the last couple of years and.
Some of that is also a digestion and bringing more senior team to help manage and Onboarding and grow the engineering teams, which is which is great.
As it relates to infrastructure investments.
And trust and safety those are high priorities.
They're really tend to be driven by the growth in our user base users have an amazing experience.
But we do.
Over a long period of time, we expect that that is going to be a high an area of high operating leverage.
I'm not prepared to talk about the growth rates of expenses ought to go back and take a look at Q4 referenced exactly what youre talking about but I would expect to see us to continue to invest because we think the investments are high ROI, but to the extent we are driving healthy growth in the top line.
Operating leverage was what you saw in the fourth quarter. So normally just in terms of trends because I know this question will come out fixed costs tend to continue to grow throughout the year is high.
Higher and Thats, an infrastructure again, albeit at a slower rate, possibly this year, but.
<unk> is the top line keeps growing.
We think thats the right way to show operating leverage.
Because we do believe the investments, we're making are very high ROI.
Okay.
Your next question is from the line of Mario Lu with Barclays. Your line is open.
Great. Thanks for taking the questions. The first one is on the January trends.
For bookings.
Great.
Acceleration ex FX.
I was just curious in terms of how to parse that out you guys also mentioned the <unk>.
<unk> new year coming in January this year does that.
Does that typically uplift to bookings or dry.
Any color in terms of what that trend look like before they are living here would be helpful. Thanks.
Well December bookings is probably a good guide for lunar new year, because it was before lunar new year in the <unk>.
Growth rate was pretty high so.
That's probably a good a good way to look at it.
And so what was the other question.
Yes, it's a January yes January accelerated a little bit over December .
<unk>.
Because the business is accelerating there's more content, there's better content, we're seeing growth.
Really is basic stuff, we're seeing growth around the world as Dave talked about specifically incredibly strong growth in strategic regions. So I think western Europe , and East Asia, we talked about that area being a secular tailwind of the company I think in the last earnings.
Call and that continues to be.
To be the case as an example, just in the month of January within a strategic region alone bookings grew by about 37%, So and Thats now, becoming a pretty big part of the bookings.
Opportunistic regions Latin America, Southeast Asia et cetera grew at 23% in January so again huge huge part of the world lots of population and also healthy growth.
The other thing that continue to allow us to drive bookings growth overall is the fact that in our core markets U S Canada.
UK Scandinavia ANV.
Those are the parts of the world, where we had highest rates of penetration and biggest businesses going into COVID-19, obviously, they popped up very high during COVID-19, because we were so well established there, but we are now through that and now growing above the peaks that we had.
A user base and Covid and in particular, our younger users continue to grow even though that's been that's highly penetrated part of the market, but really it's those aged app users that Dave referenced 13 to 16 in particular 17 to 24 year olds and now we're seeing really interesting growth and substantial scale in the 25 and over user.
So really its strength around the world and strength in <unk>.
All age demo has been in particular aged up.
Helpful. Thanks, Mike and then just one on the margins.
It's 20% in fourth quarter.
Any update to your prior commentary that EBITDA margin should be below 10% in 2023, especially with the strong bookings growth in December and January where should we expect.
The upside to bookings kind of reinvested back into the business. Thanks.
So I think what we what we hope everyone takes out of the fourth quarter is that.
Over the course of the year.
We were really really thoughtful about what we invested in.
We believe that we had a business that had a very very long way to go we took a really long term perspective, we believe that hiring great people was the right thing to do we believe that investing in the infrastructure was the right thing to do and that the best way to show operating leverage was to grow the topline.
And so we are.
<unk>.
I know the concept of efficiency is being talked about a lot, which is obviously very very important and you can get there in a couple of different ways. You can get there through cutting costs you can get there through growth in top line you can get there by doing both we.
We chose very strategically last year or two to invest in the belief that the top line would grow and we would see that kind of leverage. So so my only update to what I said last year is that we are yes.
Thoughtfully investing this year we.
We were fortunate to bring in a lot of very talented engineers over the last couple of years and talented employees in general.
We can slow that growth this year, a little bit, but we're still out investing and our investments in infrastructure are supporting an ever growing user base.
And those users are converting at very high rates and the payers.
They are doing what they've always done which is as they as they stay on the platform. They find great content. They make friends. They find a community they end up being in a very valuable and then David.
Follow on.
Roofing on what Mike is saying there is enormous long term headroom in our business. We're focused on getting to 1 billion da use on the platform.
The largest.
Segments in our business, our 2017 enough and those are growing at a enormous rates and we really are focused on the appropriate balance of <unk>.
Growth innovation and efficiency, our infra is amazingly efficient we built our own cloud, which continues long term severe efficiency benefits and we have a fair amount of control on our head count and velocity and growth and simultaneously, we're trying to move as much money as we can to the developer base.
We're taking a very balanced approach here to the velocity of innovation as well as our efficiency.
Sure.
Great. Thank you both.
Thanks.
Your next question is from Bernie Mcternan with Needham <unk> Company. Your line is open.
Great. Thank you for taking the questions just wanted to zero in on on Western Europe and APAC.
Any additional color you can provide in terms of why the acceleration is happening right now from either engagement perspective or content perspective.
Or anything else that's driving this.
Yeah.
Some of the some of the countries in APAC in Western Europe are not as mature as the U S as far as our user growth, but I would highlight.
U S, which has been traditionally where we got our start continues to show amazing growth and continues to show growth in the nine through 12 segment, which is really where we got our start. So there is the underlying growth that is worldwide as we focus on frequency and as we focus on engagement.
And we focus on the quality of our product even for our core market, but on top of that Germany, France less mature than the U S. Continuing to grow in January in Germany, and in France. We saw you in the hourly growth both north of 20%. So there's a lot of them.
Room, there and we ultimately once again as part of our vision of innovating the way people come together.
Ultimately trying to get every country in the world to the same level of engagement is the U S and so some of those countries are just earlier on the growth curve and Bernie just as you're doing the math, maybe two thoughts one is.
I think David.
Language is getting better and better everywhere around the world and where there is translation I think that certainly is helpful. But the other thing is.
As Dave mentioned in the U S. We started off with a younger age demographic.
Through that age demographic became very very popular there and then the and then the older age age demos started to come on board and some of the other markets in Europe and Asia. It took a while for roadblocks to sort of get there and when it did it was it was almost like we had with much more content to all of the ages.
Tim on the platform almost more so at the same time and so we get growth from <unk>.
<unk> an over 13 almost at the same time in places like Western Europe , and East Asia, and I think that has that.
That that affects the math as we see the platform really gaining traction because it's doing so.
Ross All ages in those markets at the same time.
Final riff on what Mike said and also riff on AI one other.
The thing behind the scenes as we continue to improve on our own natural language translation facility.
Which is getting better and better.
The quality of that system, the higher as our experienced quality around the world because our developers traditionally develop in one language and we auto translate into many many languages for them and.
An example would be Japan, which we believe we started to hit the level of product quality, both on our app as well as the experiences should drive viral growth there and then in January in Japan, our hours NRG of use were growing at over 100% year on year. So there's a little bit of a leverage as we can.
Prove the quality of our translation technology.
We do see signs of different kinds of content being popular in different parts of the world and that obviously speaks to.
Massa developer community and when you have that again that flywheel of content and users. It's very powerful so what we see being very popular in Japan is slightly different than what we see in other parts of the world slightly different in Europe slightly different in the U S. There is generally a certain measurement of local affinity and so the more the more we lean into the <unk>.
Munity, which we certainly did again last year significant investments in our creator community.
The more content that is appealing to more people around the world and I think we're just continuing to see that leverage.
That's great to hear thank you and just as a follow up to one of the previous questions on fixed cost. If we look at R&D and trust and safety is there just some rough breakdown our rule of thumb, we can think about for <unk>.
Those buckets are people versus infrastructure.
I can't go very high level on that.
Trust and safety, we believe which is our top priority over time.
Has a lot of headroom around automation and our view as we add more ml and more automation to our trust and safety systems. We're optimistic this is going to scale well below linear type rate, whereas with R&D, we have a fair amount of.
More control on the more engineers, we hired the faster we can develop products and so we tend to to balance that independently, but look for trust and safety.
Scale below linear as we grow and Bernie we can spend some time on the models, but let me make a call.
Comment that I hope, it's helpful and let's see if I can get.
<unk> your question.
And just to take the most of the cost today is head count related I think over time, it wont all be head count related but that is a.
More of a fixed cost in the short run number you get leverage over time.
Infra is is about running data centers and the cost of the data centers. So think of those as more like fixed cost investments, where the where they get absorbed over time as the user base grows and as the user base monetize as youll see absorption of that and then leverage on the on the model. So the the infra is almost all.
All of the cost of the data Center data Center is very few people costs in trust and safety is the opposite.
Understood. Thanks, guys.
Okay.
Your next question is from the line of Brandon Ross with <unk> Partners. Your line is open.
Hey, how are you thanks for taking the questions.
Sticking on the cost theme here.
In response to David's earlier question, a few times throughout the call you talked about reinvestment in the community and you paid developers more than ever in Q4, but if I look at it.
Percentage of bookings basis, Capex came down to I think 20% the lowest it's been in.
In five quarters was wondering if you could.
That doesn't feel like an area that would benefit from leverage so.
Just wondering what your thoughts are on the trajectory.
How youre paying the debt community on the percent of bookings space at some of what you see going forward as we kind of clean up our models.
Yes, Hi, Brian and so it's not intended to go down as a percentage of bookings bookings grew very quickly in the fourth quarter. So.
We had a little bit of again absorption. If you will of the cost and so that generally if you look at that number over the last three or four years youre going to see a shift of a few hundred basis points December was Q4 in general was a little bit unusual because of the spike in the growth rate of bookings are intense.
<unk> is to continue to move more of the economics towards the debt community. Our intention is to continue to find innovative and cool ways from the depths to monetize on the platform through.
Various sources of bookings and monetization and.
Yes, normally I would expect that that's one number that I can tell you we will go up as a percentage of bookings.
This quarter and throughout the course of the year. So it will go back up to where we've been which is like that 'twenty two 'twenty, 3% range and we will still try to push through to higher numbers. So what youre seeing in Q4.
Was unintended leverage because of the topline.
So yes.
Essentially it's timing.
It's timing right.
A good way to put it.
It's just.
You guys have just finished.
In the month of December that number.
Capital resident community was it was at an all time high.
And obviously, it's a seasonal number because its because we obviously have high bookings and it's largely variable, but we noticed as we did the math.
If you run rated December you can we can see a time in the near future where the market availability for that as a $1 billion, plus which is really exciting for us.
Great and then I wanted to dig in a little bit on brands and advertising because that was a highlight.
Our D C.
So couple of questions there.
The AD Tech has gone now.
Thank you.
Okay.
<unk> and <unk>.
Specced advertising to be any kind of real contributor this year or next and you mentioned brand experience.
John which actually caught my attention because now.
The fan base.
Obviously.
Much older and probably your typical user and so.
Successful.
From an engagement perspective.
To what extent.
Our experiences like that driving this age up.
<unk> really seen from you guys.
Yes.
The.
A part of it and four performers like Elton John we see millions and millions of people visiting their experience.
But that's just a part of it there is continuously more and more high quality content that is a daily weekly monthly.
Place, where our older players come to visit as well.
In the very early innings of advertising right now.
We have our eyes.
Right on the target of making this a self service platform above and beyond the early experiences we're doing with brands and we believe there is a huge market.
For on platform.
Advertising for brands, who want to bring people to their experiences to engage we've been very very conservative on the forecast this year as far as the contribution from advertising, but when we look at other platforms and whether it's print or online.
Web video and we look at the level of engagement on those platforms relative to on roadblock.
The opportunity is really really large so you will see us this year rolling out more and more self serve capabilities for advertising.
But we're being very conservative on the contribution Hey, Brandon we're going to move on just because we only have time for one more question, but we can catch up with you. After thank you for the question.
Alright, we have time for one more.
Final question comes from the line of Clark <unk> with <unk>. Your line is open.
Hey, Thanks, guys two quick ones I guess for me, Dave I guess, just to clarify was there any contribution from advertising or a meaningful one.
In the first quarter or in January I guess I should say.
Could you comment maybe a little bit more on sort of what's working or not working you talked about the AD units sort of calibration and then also more static units last quarter anything I guess that you would call out in terms of advertiser in more detail over response, so far and then Mike If theres time could you remind us I guess, given some of the lumpiness with Covid.
Over the last year or two what sort of seasonal patterns, maybe we should expect for either the duration of metrics reports or the next quarter or two.
Yes, we are working with a select number of brands as part of our early experiments with advertising I think any contribution that would show up as essentially shouldnt be considered right now we've got our eye on the prize of self serve this year at which point you'll start to see the contribution yeah.
So park.
Comps were largely I think.
Through Covid comparisons, which is nice to say this time.
Last year, we were basically coming out of <unk>.
And so we don't really other than in emerging markets.
We don't see too much of a COVID-19 variability in our numbers and I think getting through that in December and January.
Has been.
Helpful and has cleaned up the analysis for people, so I think going forward.
Im optimistic that were more or less through that.
It seems to me like December and January performance.
Would indicate that.
We're done with that.
So anyway, so I assume for the rest of the quarter.
We will we will feel the same way, we shouldnt see anything around COVID-19 meaningfully affecting the numbers again some of the emerging markets are a little bit behind where we are in the U S and Europe, but.
We don't really see that we look through our trend data, we don't see big swings related to Covid anymore, yes.
Keep an eye on our year on year numbers, which in effect neutralize seasonality Q4 always tends to be bigger around the holidays.
Keeping on our year on year numbers.
<unk>.
Take care of that yes.
Hi, Scott.
I think we're going to wrap up here once again, we just wanted to thank our investors and the roadblocks community.
I appreciate you being on the call with us.
Thank you for joining us today and Brian . Thank you for being a great operator, and that's a wrap for us. Thank you everyone.
Thank you and that does conclude today's conference call.
You for your participation you may now disconnect.
Yes.
Yes.
Yes.
Yes.
Yes.
Yes.
Yes.
Yes.
Yes.
Yes.
Yes.
Yes.
Yes.
Okay.
Yes.
Yes.