Q2 2023 Roblox Corp Earnings Call
Good morning, My name is Rob and I will be your conference operator today at this.
This time I would like to welcome everyone to the roadblocks of second quarter 2023 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'd like to ask a question. During this time simply press star followed by the number one on your telephone keypad, if you would like to withdraw.
Your question again prestige Star one thank you Stephanie I know Tony you May begin your conference.
Good morning, everyone and thank you for joining our Q&A session to discuss <unk> Q2, 2023 results with me today is roadblocks co founder and CEO , David <unk> and CFO , Mike Guthrie as a reminder, our shareholder letter press release and SEC filings supplemental.
Slides and a replay of today's call can be found on our Investor Relations website at IR Dot robots dot com on this call. We will be we will make some brief opening remarks and reserve the rest of the time for your questions or commentary today may include forward looking statements, including but not limited to our expectations.
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 and such risks are such risks are described.
In our.
Excuse me everyone risks are described in our risk factors, including in our SEC filings, including our most recent reports on Form 10-K and Form 10-Q, you 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 disk.
Certain non-GAAP financial measures reconciliations between GAAP and non-GAAP metrics for our reported results can be found in our press release as well as our supplemental slides for our webcast participants. Please note. The question icon at the bottom right of your screen, where you can submit your questions with that I'll turn it over to Dave.
Thank you and good morning, everyone Q2 was another quarter of strong growth across all our key metrics and we welcome you today.
Bookings were $780 million up 22% year on year, our da use were 65 5 million up 25% year over year and our hours engaged in Q2 were $14 billion up 24% year over year.
Here, we generated $28 million of operating cash our cash is now north of $3 billion at $3 billion $25 million, we showed a GAAP loss of $283 million and covenant adjusted EBITDA at 37.
$9 million.
These results powered by all of our investments in innovation and as we discussed last quarter, we continue to be on track with our bookings growth and our expense control to generate positive operating leverage we highlighted in the first half.
Half of this year that our bookings are growing faster year on year, then our cost of goods sold.
We continue to expect in Q3 of this year that our bookings growth year on year will be faster than our infrastructure growth year on year and we continue to expect in Q1 of 2024 that our bookings growth will be faster than our head count expense, we expect to.
A return to double digit covenant adjusted EBITDA margins in Q4, and 2024 as a whole.
Let's dive into the business.
We're driving continuously to our vision and mission of 1 billion daily active users and it's part of our for our four part growth strategy I want to highlight some results in all areas, including International All ages.
Really the utility of roadblocks and driving towards a daily product for everyone and our economic economy and ecosystem.
Let's start with international and I want to highlight that many of our huge international cohorts are really big and growing faster than our overall bookings in <unk> right, let's start with some key geographies, Germany da use 25% year on year growth.
Korea, 34% year on year growth, Brazil, 38% year on year growth India.
Use 40% <unk> growth year on year, and Japan, one of the largest consumer gaming market spaces.
<unk> growth of 107% year on year.
Our product highlights supporting this we mentioned semantic search last quarter for Japan. We turned this on everywhere in Q2. This improved search for out of catalog searches in pop culture terms.
We've seen a significant increase in global click through rate because of this north of 3%.
We're no longer talking about aging up we are a platform for all ages are 13 on over cohort is five times larger than our under 13 cohort and our 13 and over cohort is growing at 33% year on year for <unk>.
Our 17 through 24 cohort is growing at 36% year on year for both <unk> and ours and I do want to highlight that we introduced experienced guidelines. This quarter you can read about it on our blog.
Around the World 17 through 'twenty four 'twenty five enough cohorts consistently show higher bookings per hour than other age cohorts.
Let's take a look at our Dev ecosystem, we are on track for our developers to earn $800 million in 2023, our Dev ex payouts in Q2 were $165 million up 16% year on year and I want to highlight the <unk>.
Growing variety of content on our platform.
In the last 12 months trailing the 10 highest earning creators earned an average of $27 million. Each these are growing in larger significant businesses.
But at the the longer tail developer number one thousands is now growing two times faster over the last three years.
And is making $64000 a year, that's thousands and thousands of people, making a living on roadblocks and as far as content variety.
Versus a year ago within the top 150 experiences, we're seeing 9% more variety of new experiences created in the last 90 days this year.
A cool feature that we introduced.
For all of <unk> product analytics.
It's ways for developers to monitor user acquisition performance benchmarks and I want to highlight in the last six months use of analytics by the top 10-K deaths has gone from 22% to 40%. We think this is a.
Good signal. This is 10000 developers with 40% of them paying deep attention to analytics to help we believe improve the quality of their experiences.
For those that are deep into our ecosystem want to highlight that the anti cheat technology. We acquired from <unk> is live now it's made a significant impact in the quality of experiences on our windows platform, where a lot of our more serious gamers are playing and really significant.
We reduced exploits and board activity.
As we're moving towards our vision and mission of connecting a billion people daily we're making significant advancements in our products to make roadblocks daily utility and I want to highlight we believe we have significant headroom even in our core market.
Where we got our start which is USA nine through 12.
A highlight.
We introduced medic quest on beta we saw 1 million downloads in the first five days on that platform and it highlights our vision of roadblocks being available everywhere and it highlights the vision that when it creator makes an experience on roadblocks.
It immediately runs on all platforms and is immediately dynamically translated into all languages. We believe that's part of the <unk> growth that we've seen around.
Around the world.
Getting into utility of high frequency communication on our platform in the USA. We now have 12% of our 13 and up daily Actives using voice and 2 million voice <unk> worldwide as of the end of Q2. This is a 30% growth or.
The last six months.
And we have strong evidence that as people become more immersed with voice. It has uplift in key metrics both on hours spent on robotics.
Facial animation, we just turned on for 100% of voice users I want to highlight this coupled with voice, we believe makes roadblocks communication much more connected.
And realistic and we also turned on.
Animated heads for everyone using voice, we have some great stuff coming on animation as well on the social side.
Want to highlight we've been hard at work improving the way people connect and the <unk>.
<unk> real life friends connect and we've seen a 9% year on year growth in real life for ending in the first week, which we feel is significant and once again strong directional evidence that this benefits retention.
On our.
Economy, we're creating products and systems to build a vibrant economy and empower our creator community to offer them more ways to earn and be discovered.
Advertising is now live and its early form I want to highlight some key things there we have promoted Kristina Wootten, two chief partnership officer to help drive our connection with brands. We've now done over 200 brand Activations on the platform and we will.
Revenue this year and advertising, we're going to share at Investor Day in November our expectations for this for 2024, but I do want to highlight that on the supply side now 19% of the top hundred experiences on our platform.
Have AD units and this has been added organically by the creator community.
I also want to highlight that there are areas already where we see strong demand and more demand than supply for advertising on the platform. One of welcome some of our advertisers that are live, including Nars, cosmetics, <unk>, Spotify and NASCAR and IHOP.
Radio.
I'm really excited about.
Really the vision that we've been talking here that this is a new form of immersive advertising. This is a form of advertising that actually allows people to go to an immersive experience and experience of brand.
Highlighting that we are on track on our UGC economy to get to full avatars throughout the ecosystem by the end of the year, but we think this is going to significantly change the look and feel of roadblocks really looking forward to that.
Also just.
Highlighting on search and discovery on the efficient frontier in Q2, we've been able to increase both the impact of bookings and the engagement on our search and discovery system at the same time, which is what we've been talking about doing for a while.
Let's talk a little about AI and just how big it is for a platform like roadblocks.
We are approaching 14 billion hours of engagement on roadblocks in Q4.
There are many many many areas that we're already live on the platform with ml and AI stacks and more to come I want to highlight that we have 70 machine learnings training stacks right now.
We have trained for example, our own translation model with 1 billion parameters. This is the model that helps auto translate all experiences.
When a creator makes them.
And the range of verticals that we have live right now we've mentioned material generation and cogeneration have shipped we mentioned that we're making really impressive gains in both quality and cost throughout our safety systems on all types of assets.
Which is live we've mentioned that we're building our own model internally and running our own influence on voice safety.
Internally on search we are alive, and we have a lot of three the generative coming as we move to creation everywhere and our Avatar project.
To highlight two key things on our platform first.
First.
We've got five.
Approaching 5 billion hours of human interaction on our platform every month and this human interaction.
Can help us it does help us reinforce the quality of our stability system, we believe long term that on our platform.
Because we can run infrastructure.
Influence on our own infrastructure, there is an amazing opportunity to run influence all over the platform and run it at extremely low cost I'll give you. An example, our personalized recommendations right now 100% of these are running on our own infrastructure running in for inference.
Doing it really cheaply at scale.
Also all of our safety pipelines image audio voice text and three D are running on our own platform doing entrance on our own platform at significant.
<unk> efficiencies of cost and driving quality there longer term look for us to build bigger and more sophisticated models first around voice text and language supporting safety and civility look for bigger and more interesting advanced models for us for <unk>.
The generation and ultimately look for models from us on general human simulation and Npcs once again running at extremely high performance and low cost on our own infrastructure.
Finally, just to cap it off and then we'll start taking questions. We do have a research group that is producing some really high quality technology that we will be wrapping into our product over the next two to four years under Doctor Morgan Mcgwire Checkout research Dot roadblocks Dot com.
Tom.
Niche Agra wall, just published a great paper on adding conditional control to text image diffusion models.
2023, and you can see all of what we're doing there with that thank you and we will welcome questions.
Thank you at this time I would like to remind everyone in order to ask a question Press Star then the number one on your telephone keypad and your first question comes from the line of Andrew Crum from Stifel. Your line is open.
Okay. Thanks, guys. Good morning, So David I think in your prepared remarks, you made a comment that the company is on pace to pay out $800 million in developer exchange fees. This year.
That would imply an acceleration in the second half over the first half against conceivably a deceleration in bookings growth.
Just want to make sure those assumptions are correct and what's driving that uptick in the second half. Thanks.
Hey, drew it's Mike.
Generally back half revenue and our business is higher than the front half of the year, it's pretty simple so it's straightforward.
Roughly what the payouts are.
And so thats whats thats whats driving the <unk>.
$800 million number.
Got it Okay and then just a quick follow up can you address your plan to enable developers the ability to offer subscriptions within their experiences.
Any sense on timing for how roadblocks would share in the economics of the accompanying bookings.
That are generated through subscriptions.
Yes, so thanks for highlighting this roadblocks way of thinking about things a lot of our developers would like to offer VIP subscriptions directly for their experience. We are working on it we plan to support this we're not going to give a date or a time, we do think it.
It'll be significant and we do think it will interact with subscriptions on the platform and recurring revenue.
Thanks, guys.
And your next question comes from the line of Eric Handler from Roth Capital Partners. Your line is open.
Yes, good morning.
So the question I'm wondering if you could talk about what the impact has been on British cohorts for now having 17 plus related content.
I wanted to share that it's early.
That said, we have started to see some organic traction which is just the same as.
We've seen in all the areas. We have started to see developers build specific 17, plus experiences and they are starting to show up in our in our sorts. We we think this is going to continue to grow and get bigger, but you can check it out on the site.
Great. Thanks, and just as a follow up with advertising being able to roll out now how are you pricing.
The inventory.
Yes. This is really exciting we've been a little gentle on the pricing right now we're going to we expect at some point in the future to float the price and when we do this we will see the true.
Value of what we believe is an extremely.
New and valuable AD unit, which is a teleport into an immersive experience. So this is a new AD unit. Unlike a video AD unit. Unlike an image AD unit, it's literally moving real time people on roadblocks into one of our partner's experience and we will self discover that in the free market.
As we flow pricing.
Thank you very much.
And your next question comes from the line of Clark Lampkin from <unk>. Your line is open.
Thanks, Good morning, I have two Dave I want to start with some of the AI commentary you made in the shareholder letter understanding that it's an accelerant to creation across the platform I think the consequence from a user side.
It seems fairly obvious in terms of the overall experience improving but as we think about the developer side, how does that increase.
In volume and velocity of content creation impact developers does it make it a more competitive ecosystem and if it is is there a need to I guess sort of offset that with potentially higher.
<unk> distribution rates over time.
We think that we're at.
Entering our exciting new period on our platform you highlighted that for users traditionally when users create immersive <unk> content or social content. They are used to doing it with graphics tools and <unk> type creation.
We think experiences for example, a fashion design experience is going to migrate all the way from using a virtual selling machine and scissors to purely based tax prompts and.
Ultimately, we'll enter an age on on roadblocks, where anyone can make their avatar or clothing, 100% through tax prompts. So if I hear you wanted to build a piece of clothing, we could describe it we're going to see that created in real time, we think for developers this is going to accelerate.
<unk> up and down the stack there is.
There's a great video clip, we're not going to claim when we will achieve this on westworld, where theres a text based interaction of <unk> creation, and we do think thats the product vision, where developers will have all tools at their disposal, we will see a greater diversity of experiences we will.
See people, who before didn't expect to be creators, making immersive <unk> experiences and we will see the ones that are created by developers become more rich and dynamic we may ultimately even see experiences that are dynamically personalized for each individual players. So it's really early.
But we think it's a really exciting frontier for <unk> creation.
That's helpful. I appreciate the comments I, maybe one for Mike as a follow up I wanted to kind of pull out the thread that you dangled, a moment ago with saying the back half of the year is going to be bigger than the first half traditionally I think that sort of implies an acceleration or I guess at the very least steady growth into the back half of the year.
Assuming that sort of persist if not improves next year with.
Product cycles that are unfolding in sort of improving.
You talked about advertising already could you help us I guess think about ongoing rate of margin improvement with the business you identified the sources I guess across opex, but maybe simplifying a lot of those things between Cogs and R&D over time does that roughly speaking translate to sort of two to 300.
Basis points per year is it a little bit more would you be willing to quantify at this point. Thanks.
That was a long question.
But a good question.
Sure.
That's okay.
We will see.
Leverage against pretty much all of the cost areas over the next 12 months will.
We think we'll see a little bit of leveraging cost of goods sold.
Because we've slowed down hiring leverage against higher compensation expenses, because and for trust and safety, we slowed down a little bit there we've already closed the gap pretty meaningfully on both of those two just to give you a few numbers.
In the first quarter Info Trust and safety was growing at about 33% year over year bookings are growing at 23% and then just last quarter and for trust and safety is growing at 24 and bookings were at 22, you can already see theres a lot of.
Of leverage that we have already shown and obviously one way to seeing leverage in Q3 same thing with personnel head count costs.
We're growing foreign excess of bookings in Q1, much less in Q2, and we've already taken steps. So that we will see leverage in Q1.
For us, we really feel like all the cost areas. There is opportunity for leverage while we continue to invest in growing the top line. It will really depend on both a combination of how.
How the costs rollout and how fast our topline growth obviously, but.
I don't really.
We're not we're not giving guidance on what the year is going to end up were just saying Q4 is we're a seasonal business Q4 is back into double digits, and we should be able to run double digits for 2024 as a whole yes.
Yes, Hi, Rob just want to highlight the we continue to hire a lot of people the year on year incremental head count and compensation costs will go down slightly we do expect bookings in Q1 2024 to be growing at a year on year rate higher than the headcount compensation and the final thing just to add I said.
Once again in my statement is we do expect double digit covenant of <unk> adjusted EBITDA margins in Q4, and 2024 as a whole.
And your next question comes from the line of Brandon Ross from <unk> Partners. Your line is open.
Hey, Thanks for taking the question.
Your beta with medical has actually opened a few questions.
In my mind.
One of them is while we're on new platforms is there any update on opening the roadblocks to other new devices and game platforms, Playstation or switch.
And then a follow up.
Yeah. It's a great question high level, we believe immersive three D. Human co experience should be on every platform we.
Of course have our eyes on those platforms and stay tuned.
Okay and then.
Yes.
Dave It seems like in the past you haven't shown all that much interest in BR I could be wrong.
But do you believe that BR now will become an important tool for accessing your platform and does the Apple vision CRO change your perception of how people will experience <unk> interactive in the future and then maybe if you could talk a little bit about technically.
How much more complicated it is.
Yes.
Built for VR and AR.
And still create the same experience across all the platforms you work with.
Yes.
In a few weeks ago that we had.
1 million installs and Theres a lot of good information in the comments there were people who haven't used the VR before are used to certain roblox experiences on their phone or their computer.
And they put out a VR headsets like Oh My Gosh. This same experience is all around me on deeply immersed in it and it's the same experience I'm used to so we do believe it's.
Really immersive experience our strategy has always been that immersive three D should be everywhere, we want the highest quality experience everywhere, we want to create or to make once and run everywhere. We've done a lot of work on performance and on human interaction.
So those same experiences out of the box work on met Acquest a lot of that work of course is the same work we would do on Apple vision just has a lot of the work we've done on Xbox would be the same work for Playstation and we are really excited that some of the performed.
We would do for medic quest reflects throughout our whole ecosystem. So we're already pretty good at build once run everywhere and as you correctly note. There's a lot of opportunity for both immersive is on VR and more platforms.
Thank you.
And your next question comes from the line of Matthew <unk> from Morgan Stanley . Your line is open.
Hi, everybody. Thanks for taking the question two maybe I'll just revisit next for a second so.
That's down 21% of booking and <unk> down a little bit from <unk> and given your expectation of $800 million booking.
Excuse me if you have access to the full year.
It would imply that as a percentage of bookings in the second half that it would have to step up depending on your bookings assumption two maybe even three so I guess I'm wondering given that it's a formula that <unk> payout based on gift.
Offsetting some of the.
Some of what's happening in the second half what changed in <unk> and then what's been the change in the second half to kind of cause that ratio of dividend payouts to go up one follow up thank you.
So hey, I want to go high level on this and we believe over time more and more ways creators earn money on our platform traditional <unk> engagement based payouts, we have advertising coming and potentially subscriptions and other things. So this is going to be a very rich ecosystem. We've also highlighted.
Did that by Q1 of next year, we expect year on year bookings growth to be faster.
Greater than cost of goods than infra and then head count.
That leaves either cash generation or <unk> and that puts us in this wonderful place to balance really how much cash we generate versus how much we distributed to developers so that at a high level. The more we drive to this the more opportunity we have for both earnings and <unk> with that ill kick.
Over to Mike for detail on this and then just on the quarterly timing just look at 'twenty. Two is a year that tax rates were $23 20 to 22 20 in the fourth quarter 24 in the first quarter. So the timing of prepaid cards doesn't in fact affect the payout ratios back to 21%.
This quarter.
Again consistently look over time, it's moving up and it's moving in the 'twenty two 'twenty, 3% range. We again 24 in the first quarter, so it's going to be assigned.
It's not entirely formulaic because you do have engagement based payouts on top of the normal formulaic piece and today's point other things that developers can also participate in over time so.
The number will fluctuate 100, 200 basis points quarter to quarter sometimes.
And overall, yes.
It implies that we're going to again be a bigger business in the second half and we were in the first half and it implies a good healthy payout ratio for our developers, which is ultimately we're always investing in the developers.
Great. Thank you and then just on the on the AI models, there was a comment in the.
In the shareholder letter about creating a multi modal generative AI model date Youre talking in the prepared remarks remarks about how efficient you are able to be on the AI side. So I guess from the head count and infrastructure perspective are all of the investment.
<unk> been pleased that within the plan in order to create those those AI models that youre going to need to go to the next generation of what the platform is going to be capable up or could we could easily be in a position where as you try to build these tools. It requires maybe more investment and Thats a worthwhile thing to do.
Yes, I want to highlight though right now we have a lot of people working on AI internally already so we have a fairly significant team and it's a fairly significant team considering once again the scale of what we're doing we're running 70 different vertical training models right now and we built a fairly significant tech on the <unk>.
Trust and safety side.
Yes, I don't want to comment on the future opportunity. There, we're always open to things, but right now we're still on track to have our bookings.
Spence speed, our head count expense in Q1 of 2024, and we have a really great sophisticated AI team already in place.
Great. Thank you.
And your next question comes from the line of Omar <unk> from Bank of America. Your line is open.
Hi, Thanks for taking the question.
You launched.
You do see limited in April .
I was wondering if you could update us on your commercial learnings, thus far and I'm, particularly curious if you saw a corresponding increase in the mix of subscriptions and I have a follow up question.
Yes, I'll tell you right now.
Limited UGC is the long term vision right now, it's a smaller proportion of our marketplace.
But you could one could say that UGC limited more accurately mirror the economics of the real world as far as scarcity as far as cost of goods sold as.
As far as creating really a rich and vibrant economy and we do expect ultimately for every cohort every type of asset to follow this pattern of more similarly, mirroring the real world.
Pricing on UDC items is three X the non UGC or non limited pricing, which is a really really good sign and it's a good sign that we're moving in the direction of strong economic theory, supporting how we build a virtual goods marketplace will be rolling out.
<unk> of this over the next two quarters and ultimately, it's our long term direction.
Any any comment on the effect on premium subscriptions because for my not for my understanding you have kind of a premium subscription in order to participate in the trading EMEA I believe we may be referring to to be a creator and we're using that most likely more as validation of user count will.
To check on that I want to validate that but we're not requiring subscription necessarily I think to buy UGC limited <unk>.
I will check with the team on that.
Understood.
We're not trying to.
Yes, just I want to clarify we are not trying to drive subscriptions with UGC limited.
Got it and how.
How much do you think UGC limited's could influence the trajectory of monetization in your core markets in the next few quarters.
Hard to say, we are doing experiments once again through every cohort.
China optimize nearing of real life all of the projections, we talk about as.
As far as bookings versus expense in Q1.
Really head count expanded acceleration or not acceleration, but really bookings, beating head count expense.
I don't believe we have huge gains from this built in I believe we have a lot of upside there.
Thanks, a lot David appreciate it.
Yes. Thanks.
And your next question comes from the line of David Karnofsky from Jpmorgan. Your line is open.
Alright, Thanks, Dave.
Wondering if you could discuss for and I know, it's early for games that have added advertising units, how that's impacted the overall experience.
Purely additive in terms of monetization how does it impact engagement and then your shareholder letter noted.
Measurement and attribution tools the brands wanted to see if you could unpack that a bit how much targeting.
Do you think you can provide for marketing purposes.
Yeah, two things to unpack one is <unk>.
Developers have a lot of analytics right now on our platform and they are opting in to these AD units once again to the tune of 19% of the top 100.
We're optimistic that these types of AD units are native immersive non blocking and additive.
We're not talking things that prevent you from playing our pre roll or things that get in your way, we're talking about AD units that somewhat simulate real world. We're walking around we can see a portal to go to one of our.
Brand experiences and then people will have a back button then they can come right back. So we're really optimistic about this I would say.
Just highlight once again the second part of your question.
Yes, I was just about in the shareholder letter you talked about giving measurement and attribution tools. The brands just wanted to see if you could discuss that.
What level of targeting yet willing to get.
We're building a full building a full add marketplace for this new type of AD unit brands will have within the constraints of course of safety and stability on our platform and <unk> rules and Copa rules and all of those types of things as well as our own vision the ability to I think thoughtfully.
Some targeting we're not going to be doing this for user teams on the platform. This is all for 13 and up.
And we are already seeing signs in certain areas. For example, 17 through 24 female of strong demand potentially being greater than supply for these ad units.
Thank you.
And your next question comes from the line of Matthew Thornton from Jewish Securities. Your line is open.
Hey, good morning, David and Mike.
Two if I could one on AI and one on ads.
On on AI.
This is for Mike or not I think you guys have got thousands of trucks. The safety head counts on the platform at current I think Thats, an area, where you could certainly point AI to drive efficiencies I'm curious if you have any color or thoughts on timing of.
Attacking that and what that impact might look like.
From a margin lift per perspective.
And then just second on an add as we think about the back half of your it sounds like we're getting a lot more color here at the Investor Day in November which is which is great.
But as we think about the <unk>.
Back half of the year and into next year, how should we think about.
Number one just.
The biggest friction point that you see that you still need to unlock the kind of.
Grease the wheel for acceleration there.
Maybe milestones we should look for.
And that AD business, and then a follow up to your prior commentary on ads.
Interested to hear.
<unk>.
Developers are opting for in terms of AD portal versus Billboard if you have any kind of splits there would be would be great. Thanks guys.
Okay, Yes.
Two things one is well.
We'll give you a little hint here, we've indicated our year on year bookings growth is going to be faster than our infra cost in Q3 of this year and for includes all of our infrastructure hardware. It also includes cost for trust and safety.
And while I will also say that all of our asset review pipelines are moving more and more.
To higher quality and lower cost with AI acceleration all five of those pipelines I mentioned on the advertising thing the thing to watch for us will be and we're not going to give a date when we fully float the advertising market and so you can see true pricing out there. We're excited about it because we are seeing.
Supply demand really being interesting in some cohorts.
As far as <unk>.
Portals.
Of the 19% of the units that we've placed I believe most of them I think 12% or 13 I'm looking.
It's about 12% great. So 12 of the top 100.
On grabbing the data.
Cool so 12 of the top hundred are placing portal as well have the right data that 10 four.
And then I'll kick it over to Mike Yeah. Thanks, Matt on friction again, maybe just I'll keep it high level for a second.
Ultimately.
In my mind, it's the total volume of brands that get engaged on the platform. So brands today agencies, working with agencies and working with US how many of those brands are building and engaging on the platform.
We noted there is over 200 brands that are engaged with us.
At this point, that's a double over last year and that rate of growth in that rate of adoption is really what makes the platform a rich and open opportunity.
For advertisers so.
So that's the number I track almost more than anything I don't think it's.
It's technology I think its the volume of brands and agencies that are working with us and getting their content onto the platform. So that's really what I look at.
And then one final thing the unlock when I say, so when we say float pricing the complementary unlock there is everything we're doing is completely self serve we're not building a handholding platform. We're building a platform where any brand on their own can come and start using our platform for portal and image.
<unk>.
I appreciate the color.
And we have time for one more question. Your final question comes from the line of Tom Champion from Piper Sandler Your line is open.
Hi, This is Tim on for Tom Thanks for taking the question I guess, one for Dave So <expletive> you mentioned some detail.
The decreases to the premium payout program can you just touch on that a little bit.
Trying to think I don't think we've mentioned any detail around that.
Color on that.
Yes.
So we think we've addressed premium payouts on the call.
The comment yes, so we've been talking about <unk> and also engagement based paths, we havent announced any changes in either of those programs.
Okay, Great and then I guess, just one more on the developer exchange C is there anything we should keep in mind with respect to like FX here for payouts that are going to non U S dollar developers.
Yes.
I'll chime in I believe we pretty much normalized everything to the U S dollar and all of our payouts and do that in real time as we pay out.
Okay, great. Thank you.
Well. Thank you for joining us today, that's a wrap for US Rob you can close it out.
Thank you and that does conclude today's conference call. Thank you for your participation you may now disconnect.
Correct.
Okay.