Q3 2023 MoneyLion Inc Earnings Call
Greetings and welcome to <unk> third quarter 2023 earnings call. At this time all participants are in a listen only mode. A question and answer session will follow the following presentation. If anyone should require operator assistance. During the conference. Please press star Zero and you kind of some key pad.
Please note. This conference is being recorded and I'll now turn the conference over to Shawn, Oregon head of Investor Relations. Thank you you may begin.
Thank you operator, hi, everyone. Thanks for joining us for our third quarter 2023 earnings Conference call with me today to discuss our results are money Y N C. A D childbirth and see it sounds like Korea U.
You can find the presentation accompanying our earnings release on our Investor Relations website at investors got Moneyline dotcom.
Please note that any forward looking statements made in this commentary are subject to our safe Harbor statement found in our SEC filings and in the earnings press release.
That I will turn the call over to <expletive>.
Okay.
Thank you Sean good morning, and thank you all for joining us for our third quarter of 2023 earnings call.
Your line had another record quarter in Q3, demonstrating the strength and resilience of our business model.
I am pleased to again be able to say we executed like we said we would we continue to demonstrate our ability to generate growth and drive profitability, while maintaining a healthy and sustainable balance sheet.
The benefits of our two sided ecosystem, we're working underscoring the durability of our business as we navigate with focus and discipline.
While others are pulling back and waiting for things.
In the face of challenges, we are leaning in and driving for optimizing their technology and building on the momentum of our mutually reinforcing businesses. That's in our DNA and we'll continue delivering on that now I'd like to highlight the key investor takeaways for the third quarter.
First we achieved record quarterly revenue of $110 million.
This was within our guidance range and represents 24% year over year growth up from 22% year over year growth in the prior quarter importantly, our consumer and enterprise businesses, both achieved record quarterly revenue.
Second we generated record quarterly adjusted EBITDA of $13 million as it has been for many quarters. We are focused on cash flow generation and it's good to see we exceeded our guidance of $6 million to $10 million for the quarter. This represents a 12% adjusted EBITDA margin up from 9% in the prior.
Quarter and marks our third consecutive quarter.
Positive adjusted EBITDA amounting to $30 million year to date.
Last we generated $8 million in cash flow after operating and investing activities, marking another important milestone for us as we position for self funded growth.
These are all healthy markers that should get investors excited about our progress in the quarter.
Finally, the third takeaway for the quarter is that we are rapidly scaling our marketplace network.
Let me provide some metrics to illustrate how expansive dealer network as well.
You had almost 16 million total customer inquiries in Q3, which is up from roughly $50 million in Q2, 2023 and $34 million in Q1 'twenty. Three this translated to over $1 billion of financial products transacted across our network of over 1100 enterprise partners in the third quarter alone.
We are in the enablement business, meaning that we provide the marketplace network that enables financial product providers to instantly reach the broadest set of potential customers.
And correspondingly, we enable high intent consumers to easily find the product that works best for them.
Our data advantage comes from our proprietary datasets.
This positions us to improve monetization for all our partners and deliver better outcomes for consumers and overtime creates opportunities for us to deliver more value to our data products.
Total customer growth continues to be an area of strength for moneyline.
In the third quarter, we added a record 2.2 million customers, bringing our total customers to $12 1 million.
Over 80% of the customers added in the third quarter took a third party product as their first products on our platform.
This speaks to our ability to attract customers with a wide array of competitive offerings through our marketplace.
Our ability to consistently generate 100% year over year growth in total customers underscores our focus on rapidly scaling our ecosystem, which we believe provides significant revenue opportunities for the long run.
We will talk more about this in our financial update as well.
Turning to total product over 20 million Tuttle products were consumed on our platform through the third quarter, an increase of about $3 million from the prior quarter.
To date, 44% of the product's consumed where third party products up from 39% as of Q2, 'twenty 23, and 21% as of Q3 2022.
Third party products continue to make up an increasing mix of overall product consumption, reflecting our strategy to deepen the offer set to more segments of consumers.
This approach continues to allow us to provide value to three important core constituents.
Number one to our channel partners like large digital publishers of new sites that drive consumers to our platform by providing increased ways for them to to provide value to their users and in turn monetize the impressions that they're having on their own and operated sites.
Number two to our product partners like syntax banks insurance companies and other lenders by providing high intent in market consumers seeking a financial products and finally consumers who now expect the same personalized financial offers and money adjacent content and education there.
Custom to in other facets of their digital lives.
As a result, we continue to see the strong kpis translate to financial performance marked by a healthy combination of revenue growth and margin expansion quarter over quarter.
Now I will provide an update on the progress of both our consumer and enterprise businesses. We've talked extensively about the flywheel effect in the past and I continue to believe the way that we've set up our business model gives us structural advantages over fintech and marketplace peers.
Starting with our consumer business, our first party personal financial management products showed continued growth.
And performance during Q3, and the post pandemic era with strong real wage growth and low unemployment. The average employed American consumer is performing well.
This is the mass audience, we primarily serve with a robust suite of personal financial management capabilities. This is critical to the success of our overall network more engaged customers allow us to onboard a deeper set of financial institutions.
Our risk management practices remain best in class in Q3 was no exception, we leverage a vast set of ingested and proprietary data that informs our decision, making and we continuously improve our risk models and optimize our payment rails put simply we can underwrite risk better than those that use outdated point in time.
<unk> models.
Moneyline's predictive models are more modern relying on multiple signals and data sources and therefore, we're more agile and more adaptable across economic cycles. The compounding benefits of infrastructure show up in our Q3 results, we delivered $564 million and first party originations in the third quarter, while maintaining perform.
<unk> at a level, we are very comfortable with.
Most of these originations came from our liquidity product into cash.
We welcome the increased popularity of the product and again, our ability to manage the risk and operational levers is industry leading.
Our consumer facing PFM platform is taking share with a growing number of products and services that help our customers save borrow spend invest and importantly find personalized financial insights and advice.
Now I'll turn to our enterprise business.
In the third quarter, our enterprise business achieved record revenue for the second quarter in a row, demonstrating the resilience of our marketplace and media divisions.
Remember moneyline as the marketplace solution and embedded finance that enables not competes with financial institutions products solutions and brands.
In our enterprise marketplace.
We delivered another quarter of growth despite decreased industry wide advertising spend in the face of slowing loan growth driven by higher cost of capital.
We have diversified our product mix expanding significantly into non lending verticals in areas like high yield savings, which has been critical to our success revs.
Revenue from our personal loan verticals now represents 55% of our enterprise marketplace revenue in Q3 compared to 85% in Q3 2022.
In Q3, and continuing into Q4, we have been diversifying your enterprise marketplace revenue mix and laying the groundwork for the future to expand more into credit cards insurance and mortgage verticals as demand for these products improve.
Additionally, we now have over 1100 enterprise partners on our embedded finance network and we're finding the new revenue streams that leverage our data advantage things like consumer insights and fraud signals that shall lead quality and cash flow underwriting models, our entire ecosystem and a three core constituents, we outlined benefits from.
Our proprietary datasets generated through our robust marketplace.
Our consumer marketplace is an important component of the overall product we provide our network by matching high intent consumers with the right financial product at the right time. This portion of the overall enterprise business drives high gross margin revenue and is a key driver of margin expansion as we continue to scale.
And finally, our media division is focused on several areas that represent untapped revenue opportunities, most notably cross selling media services to our existing partners throughout our network. This enhances the value proposition that we provide to our channel partners product partners and of course, our consumers are.
Media business has exited the quarter with strong momentum and remains laser focused on driving growth and profitability through its expanding list of clients as well as continuing to enhance the value of the consumer product in the consumer marketplace.
The moneyline ecosystem continues to rapidly evolve and drive innovation forward since our last update we've added intuitive product applications like savings and loan calculators that make it easy for users to find the products they need.
We've rolled out AI powered search and insights within our app leveraging our vast proprietary dataset, we are providing customers with insights into their spending habits that can help them better budget save and invest for the future as we previewed last quarter. We are providing this technology to any financial institution looking to build.
Marketplace capabilities.
We use behavioral insights like our driver score, which helps match good driving behavior with personalized offers for related financial products like auto insurance, we provide credit monitoring and insights that help customers improve their credit score and find personalized offers that fit their needs.
Finally, we unlock new social features in the discover feed that drive engagement and a sense of community. We're starting conversations about money the prompts and pulls it start conversations with and amongst users.
In addition to these capabilities we are building the most engaging tools widgets and calculators and the industry, helping our customers learn about product and make their best product decisions.
These experiences are distributable anywhere across our enterprise network, enabling our partners to maximize the value of their product offerings because of these innovations and building unique products were driving more consumers to our platform, which makes our marketplace deeper and attracts more enterprise partners to our network. This is the structural.
We've been talking about and we believe the flywheel effect significantly differentiates our business model and it will propel our growth for years to come.
So what does moneyline dealing in Q4 and beyond as other marketplaces are just waiting for the market to shift we're building. We're innovating we're playing offense, we're executing and gaining momentum we're shortening the distance between consumers and the products. They want that means taking market share no matter the market.
Now I'll turn the call over to Rick to walk through our financials in detail.
Thanks, Steve and good morning to everyone I look forward to sharing details about our financial performance for the third quarter ending September 30th 2023 I.
I will also discuss our guidance and outlook for the full year of 2023.
For information please refer to our GAAP consolidated financial statements and non-GAAP reconciliations, which are available in today's earnings release, and our 10-Q filing.
Turning to our customer acquisition and lifecycle strategy, our top of funnel drove approximately $60 million total customer inquiries up from roughly $50 million in Q2 2023.
These customer inquiries convert it into a record $2 2 million, new total customers up from $2 1 million in Q2, 2023.
Similarly, this resulted in 3 million total parks consumed during the quarter compared to roughly $2 7 million in Q2 2023.
As he mentioned earlier over 80% of customers added in the third quarter took a third party product as their first product and demonstrates the importance of our marketplace approach.
This approach differentiates us from those who offer first party products only and it allows us to scale with incredibly attractive unit economics and future lifetime value potential.
So how are these unit economics in the third quarter we.
We added $2 2 million, new customers and attack that remains under $15 and all of our markers tell us our low CAC profile will continue in the near term.
Importantly, we've seen our Tac declined each quarter year to date in 2023 or.
Our payback period continues to be around three months.
<unk> was $40 in the third quarter compared to 48 hours in Q2 of 2023 of course, adding a record number of customers over the quarter skews. The arps calculation. However, as we have said over the past few quarters. Our 40 door ARP, who is also the result of a strategic decision to focus on a law.
Larger Tam and lifetime value and it's working.
The directional trends of our unit economics are aligned with our strategy to scale today.
While monetizing at attractive margins as you can see from our expanding margin profile.
Again this provides us with an opportunity to cross sell when these less mature cohorts need their second third and fourth financial products.
Our unit economics, underpinning, our strong business equation and reflect our deliberate decision to bring as many people into our ecosystem as possible. We believe this positions moneyline for long term sustainable growth.
As you can see our historical cohorts once again demonstrate our ability to drive lifetime value and generate repeat product consumption and revenue.
Starting with consumer in the third quarter.
80% of our consumer revenue came from historical cohorts and.
And we continue to see the majority of our revenue come from cohorts that we've acquired in prior years, which illustrates the highly recurring nature of our consumer revenue.
In our enterprise business.
Over 90% of revenue from our enterprise marketplace came from prior year cohorts.
This is what gives us the encouragement to invest in our enterprise sales efforts, we know that when we onboard a new partner, they're likely to have a higher lifetime value by virtue of the fact that most of our enterprise revenue today is for partners, we on boarded in prior years.
Shifting gears to originations total.
Total originations were 564 million up 26% year over year and.
And in the last four quarters, we've seen over 2 billion total originations.
Our provision expense as a percentage of originations was three 7%, which is flat compared to the second quarter. Two primary drivers are contributing to our performance. One we're continuously implementing changes to optimize our credit performance, specifically, we've enacted operational improvements.
In 2022, and 2023 that have also supported the positive results we've seen.
Two.
As Dave mentioned, most of our consumer originations come from our liquidity product into cash the health of the customers engaging with this product and helping these customers meet liquidity needs drives positive performance.
In combination these two drivers abstract us away from the macro environment.
Going forward, we will continue to manage originations to balanced growth cash flow and credit performance with a high degree of confidence given the operational levers we have.
Revenue for the quarter grew 24% year over year to 110 million, marking another quarter of record revenue.
This was driven by strength across our entire business as Jim mentioned, we achieved record quarterly revenue in both our consumer and enterprise divisions, while realizing gross profit and adjusted EBITDA margin expansion.
Turning to gross profit Q.
Q3, 2023 marked our second consecutive quarter of gross profit margin expansion with.
We generated $67 million of gross profit in the third quarter, representing a 61% gross profit margin compared to our guidance range of 55% to 60%.
Our gross margin expansion reflects the higher gross margin from our enterprise revenue as we continue to drive higher margin consumer marketplace revenue.
Now onto our path to profitability.
Q3, 2023 was our third consecutive quarter of positive adjusted EBITDA and continued margin expansion.
Adjusted EBITDA as of third quarter was $13 million compared to 9 million in the second quarter of 2023, representing an adjusted EBITDA margin of 12% in the third quarter compared to 9% in the second quarter of 2023.
Notably, we generated $30 million of adjusted EBITDA year to date, demonstrating significant progress as we scale.
We closed the quarter with $94 million of cash compared to $97 million in Q2, while also paying down $10 million of senior debt in Q3.
Meaning we generated $8 million of cash before paying down debt further validating that our unique business model is working.
Importantly, we also paid down another $10 million of senior debt in October of 2023.
Bringing our secured loan balance of $65 million, which comes due in Q1 of 2026.
While we don't plan on making any payments on our senior debt until March 2026.
Going forward, our lower overall debt balance will reduce our quarterly interest expense with the full impact beginning in Q1 of 2024.
Similarly, the absence of these repayment commitments will allow us to allocate more cash to invest in organic growth and strategic investments going forward.
Shifting gears to guidance.
The third quarter.
Revenue was 110 million within our guidance range of $110 million to $115 million.
Gross profit margin was 61% exceeding the high end of our guidance of 55% to 60%.
And adjusted EBITDA was 13 million exceeding the high end of our guidance of $6 million to $10 million.
This represents a 12% adjusted EBITDA margin of 5% percentage point improvement relative to the midpoint of our guidance.
For the full year of 2023.
We expect revenue between approximately $420 million to $425 million, representing a 23% to 25% year over year growth.
We expect gross profit margin between 58, and 59% and adjusted EBITDA of approximately $39 million to $45 million, representing a 9% to 11% adjusted EBITDA margins.
To put this into perspective at the midpoint of our guidance, we expect 42 million of adjusted EBITDA or 10% adjusted EBITDA margin in fiscal year, 2023, which compared to an adjusted EBITDA loss of 63 million in fiscal year 2022 represents an improvement to adjusted EBITDA margin of.
28 percentage points.
All of this together reflects a financial profile that is rapidly approaching the rule of 40.
Our full year 2023 guidance reflects 24% year over year revenue growth and 10% adjusted EBITDA margin at the midpoint.
This is a great outcome and we believe we are rapidly approaching an optimal balance of growth and margin.
As we look to close out the remainder of 2023, we're proud of the progress we've made and feel incredibly well positioned for the quarters and years ahead with that I'll turn it back to <unk> for closing remarks.
Thanks, Rick our third quarter performance speaks for itself and our progress year to date reflects moneyline's ability to pull the right levers to strike the right balance of growth and profitability, we are gaining momentum and we're positioned for outside growth in the long run we have a durable and nimble business model with many levers to pull.
In order to navigate through an uncertain macroeconomic environment.
We did what we said we would we reached all time high quarterly revenue of $110 million.
As Rick said, adjusted EBITDA margins expanded quarter over quarter.
The strength of our ecosystem has passed the point of proof of concept. We are now expanding our footprint. We continue to innovate our technology, our proprietary datasets continue to compound and we continue to develop and release innovative embedded marketplace product features that exist within our own PFM product set.
<unk> and available to any one of our enterprise clients.
All the pipes are laid across our network, we're leaning into areas of strength and positioning for the rebound.
Strategy is everything in this moment and while summer positioning for survival in a down market. We're positioning to pull ahead of the pack and become the market leader.
In closing, we've never felt better about moneyline's competitive position than we do today.
Our marketplace strategy has proven to be the right. One we have a capital light model, where we don't rely on us having to have a massive marketing spend yeah. We continue to see record customer adds.
The flywheel between our P. S N, our consumer capabilities and our enterprise marketplaces.
Moreover, we have a strong balance sheet going into Q4, and 2024 that gives us a lot of confidence to execute the.
The strategic bets, we made are bearing fruit and we're incredibly excited about the opportunities in front of us. Thank.
Thank you all so much for joining today and we look forward to taking your questions.
Thank you if he would like to ask a question. Please press star one on your telephone keypad, a confirmation tone will indicate your line is in the question queue. You May press star two if he would like to remove your question from the queue.
For participants using speaker equipment, it may be necessary to pick up your handset before pressing the star keys.
Our first question is from health coach with B Riley. Please proceed.
Hey, good morning, everyone great quarter.
I got a question for you guys.
Do you just said all the pipes are laid for a rebound and then earlier in your comments you said personal loan business was down.
85 from 85% down.
Down to 55% I was hoping you could just give us more color on the <unk>.
The declines you might have seen or the pressure you might've seen in this business over the year that suggests hey, you guys are fighting through a very difficult time and I'm, just hoping you could give us more color or more numbers on on.
The stress it's seen in that personal loan market over the last year. Thanks.
Hey, al Thanks for the question good morning.
So one clarification, it's not that our personal loan business is declining.
We said was a year ago share 85% of the revenue was from personal loans. We've diversified so much that this quarter, 55% of the enterprise marketplace revenue or from Personalised. So what that means is that we're getting into more asset classes and I remember one.
Historically been really really strong as you know we have a P is that connect.
Publishers to financial institutions and through those API as it had been historically and probably strong connecting that personal loan product that what we're trying to do is get more and more verticals. What do they really mean it can be quite a cards can be other types of loans that could be the financial wellness bundle. They argue they could be credit builders.
And that's where we're seeing.
A lot of progress.
Progress that the team is making in terms of F. <unk>.
Those connections between both sides of the marketplace and look.
As it relates to the macro lenders need.
Really to have a oh.
Really to have more certainty in the rate environment right. So we are seeing that lenders are pulling back because if they're just uncertainty around interest rates our cost of capital industry wide is increasing but as soon as we start seeing markers where that it doesn't necessarily have to go.
Super down on interest rates, but the feedback that we're getting from our lenders is that is that as soon as we see a modicum of stability in the rate forecast, we actually anticipate personal loans also to come back at some point in 2024.
Okay.
And I guess, one follow up you know these new verticals like.
Do they follow a kind of a predictable maturation of the cohort on a cohort basis that you add him today kind of start slowly and grow as well.
Give us a feel for how like new verticals kind of scale when you onboard them on the enterprise side.
Yeah look I think the new verticals really our Tam expansion opportunity for US right. So we talked a lot about customer growth. We are very confident in our ability to increase the overall aperture of users that commentary ecosystem. We've always said that the investments that we've made the bets that we've made allow us to really provide substitution products for <unk>.
Schumer's, both financial and Nonfinancial right. So the expansion into verticals allow us to.
So to really serve the customer multiple times in our in our relationship with Abbott increases lifetime value increases the number of times, we can have conversations with them to ours, who our lifecycle and our product capabilities. So it's really more of a tam expansion.
Point, and where it can translate it and translate that in terms of how it translates into <unk>. So Rick I don't know you want to add a little bit there yeah. So hey, how so you can see given our unique business model that in this quarter was interesting because we were both like revenue and growth greedy and so we added $2 2 million customers at a sub $15.
CAC, we had over 3 million products and some of the platform all while generating record revenue record gross profit record adjusted EBITDA and record cash flows and so.
I think your question is important because this happens as we tap into a larger tam in that after acquiring the customers. We have the most full featured PFM experience and breadth of marketplace. So your question around as customers are on the platform and we're expanding into verticals, yes, we're able to acquire customers, who historically have been coming for.
A a loan but now they're coming for the savings product and we're able to market to them and lifecycle to them and you can see from the past few quarters and our Q4 guidance that tapping into this larger Tam, it's fueling our business equation its.
It's gaining momentum and we continue to expect this to work as we continue to add even more verticals going forward.
Great. Thank you very much.
Our next question is from George Sutton with Craig Hallum Capital Group. Please proceed.
Thanks, guys, great EBITDA so.
You talked about leaning in versus the rest of the market pulling back I was wondering if there was a way for you to quantify for us what youre seeing from the pulling back perspective, and how that is providing.
Providing you unique opportunities.
Yeah.
Hey, George how are you. Good morning look I think it's a similar response to <unk> question is that.
The diversification outside from personal loans into other verticals is really the quantification here right that 85% of the mix of enterprise revenue from a year ago that was credit and personal loan oriented has decreased to 55%. This quarter right. So I think that that just shows you.
<unk> the expansion that we're seeing in those other verticals and we see it we see that trend continuing into Q4 and into 2024 as well yeah.
The interesting thing about this question is if you look at our business model. We are in embedded finance platform and so our enterprise customers that are having to kind of pull back because of credit and risk constraints, we're able to help them with the completion strategy, we're able to give them alternative products that they can help monetize an offset.
Their risk constraints at this time and so that's an opportunity for us we're having more engaging conversations with our enterprise clients because were actually able to help them. Given the fact that we can efficiently get them are embedded finance products that help them monetize their customers away from credit and we're seeing that momentum continue the powerful thing about that model is as those headwinds did.
Finish those macro headwinds diminish we're gonna have that elastic bounce back across all of those verticals plus credit which for us represents significant upside going forward.
That's really helpful. You had mentioned that with the debt pay down and the cash flows are generating your ability to invest in organic growth is better.
You did mention potentially investing more in enterprise sales just curious how youre looking to.
Capture this bigger organic opportunity with the cash flows that you generate.
Yes, so I think it's going to be more of the same meaning that those conversations that I was just mentioning are happening more and more and so theres a significant amount of inbounds that are happening, but on top of that once we actually have those initial kind of sales conversations.
There is a an undertaking around integration. So the investment is around our our integration team our partner solutions team. The inside sales team that allow us to kind of have those fruitful conversations convert integrate and then help our clients actually monetize them.
You know their customer base, and so that's where you're going to see us continue to focus and you're also seeing as he talked about a lot of investment being made in terms of taking a lot of the the tech IP that we've created we have the most full featured app that exists in the country and so we're taking all of that technology and that IP and making it available.
<unk> to our enterprise customers to enable them to be more successful at retaining and monetizing their client base.
Perfect Great job thanks, guys.
Our next question is from Josh <unk> with Cantor Fitzgerald. Please proceed.
Yeah, Hi, guys. Thanks for taking my question this morning, and congratulations on the strong EBITDA print.
So you you continue to experience these lower provision expenses as a percentage of originations I was wondering if you expect that to continue especially in light of declining consumer credit macro backdrop. Thank you.
Hey, Josh I'll start and I'll, let Rick kind of go into the technicals here, but you know from a from the state of the consumer we actually feel that the liquidity products that we provide on a first party basis continue to benefit from a consumer that is really strong right. So again, if you think about who we service with the <unk>.
The cash product. It's the placement is departments the teachers Union worker, it's the gig economy worker.
Our ability to predict when the cash flow comes into the bank account and how quickly. It decays is industry leading ray. This is this is a piece of technology that we've been honing in making it very precise over the last 10 years, we have a incredible data advantage here right.
And this is where we ingest data from third parties, we have a lot of data that's being created on our own consumer facing products as well as from the network all of that creates incredible insights for us to know exactly how the paycheck is coming into this ecosystem that allows us to make operational improvements right, we talked about improving our payment rails.
There's a lot of innovation happening in the payments World right. So again this is where our team excels. This is the DNA of the firm and we feel really confident that despite the.
Macro backdrop. This segment of the American population is always either having a moment of access or amendment of deficit and our ability to predict that is really strong. We are we see this happen. We see this trend continuing in Q4 and into the early part of next year.
We don't know we don't have a crystal ball in terms of just how deep.
The macro impact 'twenty 'twenty four but at least for the next two quarters, we feel.
Comfortable with our ability.
To manage this risk on a go forward basis, and as Rick said one of the opportunities for US now is to take some of these data and insights that are being generated at such a large scale and make them into data products right to make them into consumer insights fraught insights that anyone on our network any financial institution on our network, whether they'd be fed.
Tax whether they'd be banks, whether they'd be lenders, whether it be mortgage companies auto lenders can can use and we see that as an opportunity to expand our enterprise business going forward because we're finally at the precipice.
Of being able to commercialize a lot of these proprietary datasets that are that we've been holding for a long period of time.
Great. Thank you I appreciate that color and then you know towards the end of break for Mark you mentioned that you were reaching that ideal level of growth and profitability and balancing that in the future. I was wondering if you could kind of give us some insight into how you envision balancing growth and profitability.
The macro starts accelerating again as you mentioned you know some products that start accelerating beyond what we saw this year. So I was wondering what that balance will look like in a more growth oriented environment. Thanks.
Yeah, We love that question of course, because this is what we've been planning for I think what you've seen is we've been able to extract our business away from the macro.
I'm acutely aware of what I'm, saying that that is something that is unique given that they're all kind of a headwinds happening within the space and the amount of uncertainty.
The benefit of our platform is that we're able to be nimble and durable during these kind of headwinds that we're seeing in the macro and there's nothing that tells us that anything going to change on that particularly around your question from a liquidity product in terms of going forward as we kind of see that shift and basically what we expect to see is the investments that we've made.
The platform the operating leverage that you guys have been a witness to over the past four quarters is going to continue.
We have built the platform it is ready for that scale and so we're gonna be able to extract significantly more operating leverage and cash flow and EBITDA as the quarters unfold.
And as the headwinds that we're seeing in the macro diminish we expect that to actually be a multiple of where we sit today.
Yeah.
Very helpful. Thank you very much.
Thank you that will conclude the question and answer session and the conference you may disconnect. Your lines at this time and thank you for your participation.
Okay.
Okay.
Yeah.
Uh huh.
Yeah.
Okay.
[music].
Okay.
[music].
Yeah.
Okay.
Yeah.
[music].
Yes.
Yeah.
Yeah.
[music].
Yeah.
Yeah.
[music].
Hum.
Yes.
Okay.
Okay.