Q3 2025 Yext Inc Earnings Call
[music].
Good afternoon, and welcome to the Yexed, Inc. Third quarter fiscal 'twenty 25 financial results Conference call.
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After today's presentation there'll be an opportunity to ask questions.
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Please note this event is being recorded.
Speaker Change: I would now let's turn the conference over to Nils Erdmann Senior Vice President Investor Relations. Please go ahead.
Nils Erdmann: Thank you operator, and good afternoon, everyone. Welcome to access third quarter of fiscal 2025 earnings Conference call with me today are CEO and chair of the board, Mike Wallrath and CFO Darrell bond.
During this call we will make forward looking statements, including statements related to our future financial performance statements regarding the expected effects of our acquisition and integration of hearsay systems expectations regarding the growth of our business our outlook for the fourth quarter and full year fiscal 2025, our strategy and estimates of financial and operating metrics capital expenditures.
Nils Erdmann: In other indications of future opportunities as further described in our third quarter shareholder letter.
Nils Erdmann: These forward looking statements are subject to certain risks uncertainties and assumptions, including those related to excess growth the evolution of our industry, our product development and success, our ability to integrate DSA systems business with ours, our management performance and general economic and business conditions.
Nils Erdmann: These forward looking statements represent our beliefs and assumptions only as of the date made and we undertake no obligation to revise or update any statements to reflect changes that occur. After this call further information on factors and other risks that could cause actual results to materially differ from these forward. Looking statements is included in our reports filed with the SEC, including in the section titled Special Note regarding forward looking.
Nils Erdmann: <unk> and risk factors in our most recent quarterly report on Form 10-Q for the three and nine months ended October 31, 2024, and our earnings release in our shareholder letter that were issued this afternoon.
Nils Erdmann: During the call. We also refer to certain metrics, including non-GAAP financial measures reconciliations with the most comparable historical GAAP measures are available in the shareholder letter, which is available at investors <unk> Dot Com. We also provide definitions of these metrics in the shareholder letter.
Speaker Change: I will now turn the call over to Mike.
Mike Wallrath: Good afternoon. Thank you all for joining US today, our quarterly shareholder letter has been posted to our Investor Relations site.
Mike Wallrath: I hope you've all had a chance to read it before we jump into Q&A I'd like to emphasize a few points from the letter.
Mike Wallrath: We're pleased with our results for Q3, our revenue grew 13% year over year with the inclusion of hearsay systems.
Mike Wallrath: The core <unk> business is very stable and we're seeing growth contribution from hearsay.
Mike Wallrath: The selling environment appears to have stabilized in the second half of the year and we're seeing early signs of the extreme cost optimization moderating.
Mike Wallrath: We're seeing the early phases of a fragmenting search environment driven by generative AI search experiences. We believe this environment is positive for <unk> as brands will need to lean into the best ways to structure their content and data and deliver it to a much broader set of consumer search and find experiences.
Mike Wallrath: I am pleased with our operating results were a much more efficient business today and while there is still opportunity to continue to improve our margin profile. We are increasingly focused on accelerating growth.
Mike Wallrath: None of this would be possible without the commitment and efforts of our global team and I'd like to take a moment to thank them for their ongoing contributions here now.
Mike Wallrath: Now, we'd like to open it up for questions.
Mike Wallrath: We will now begin the question and answer session to.
To ask a question you May press Star then one on your telephone keypad.
If you were using a speakerphone please pick up your handset before pressing the keys.
To withdraw your question. Please press Star then two at this time, we will pause momentarily to assemble our roster.
Speaker Change: Our first question is from Ryan Macdonald with Needham <unk> Company. Please go ahead.
Speaker Change: Alright, Thanks for taking my questions. Congrats on a nice quarter, Mike maybe just start you talked about in the are quite.
Speaker Change: Quite a bit in the letter and just there in the prepared remarks that we're in in early phases of a fragmented search environment. So that's where a lot of new generative AI search kind of starting to.
Speaker Change: Disrupt sort of google's traditional monopoly and sort of SCO and SCM strategies. Today can you just talk about how this is translating into customer conversations and potential pipeline generation and what do you think this could potentially do for organic growth as we think out over the next couple of years.
Speaker Change: Yeah sure. Thanks for the question Ryan So.
Speaker Change: This is a this is probably I mean this is certainly the number one conversation that we're having with both customers and with prospects.
Speaker Change: It's really interesting because you know over the last.
Speaker Change: You know 567 years the centralization of.
Speaker Change: The search business with a single party. The focus on you know it kind of single party focused S. M. S. C. O has been a challenge for us and I think we've talked a lot about this as we start to see that you know what what seems clear to us is going to be a fragmentation.
Speaker Change: <unk> to be different ways that AI search experiences address consumer questions answer questions and ultimately deliver those answers to the questions are one of the things that is going to have to be top of mind for marketers.
Speaker Change: The rules are going to very likely be different how do I create content that is more ingestible by these generative search experiences how do I deliver that content to these different generative search experiences, it's not going to be as simple as that.
Speaker Change: Updating my the the data pipe that I have into Google and making sure that I'm. Following the rules of Google's SCO and SCM.
Speaker Change: We can play our C O dynamics in IC and marketplaces.
Speaker Change: You know there's no customer that we're not talking about this with them.
Speaker Change: From the X point of view this is very much as a problem. We faced historically with the fragmentation that came from the mobile device and a lot of ways. It's the reason why extra exists.
Speaker Change: And having a really advanced platform for gathering.
Speaker Change: Brands information structuring that data and then making that data deliverable through an increasingly increasing number of digital channels is central to is going to be central to our brand strategy and so while we're not making predictions today about exactly when we start to see.
Speaker Change: The impacts of this.
Speaker Change: It's already happening in the in the in the are in in the boardrooms in the management rooms, and and it's I don't think there's any topic for.
Speaker Change: For brands.
Speaker Change: Specialty brands, who are thinking locally that.
Speaker Change: That is more top of mind on this topic right now.
Speaker Change: Well, there and then it seemed like from the shareholder letter it like very good quarter lots of new logo additions, especially in health care. Some nice expansion activity can you just kind of maybe then sort of compare that with kind of some of the maybe the implied guidance for fourth quarter on the topline were.
Speaker Change: Taking a sequential step down just how should we think about.
Speaker Change: Where things stand in terms of the trajectory and maybe you can divide it between sort of organic business versus for the core <unk> business versus maybe some of the initial things you are seeing with your say thanks.
Speaker Change: Yeah sure. So thanks for the question, so I'm going to let Darrell I'll get into the specifics, but I think the punch line to your question is it's it's probably that there's sort of confusing sequential nature of the revenue in Q3 on the guide in Q4 is FX related.
Speaker Change: Joe I don't know if you want to say no no that's right and Ryan you know in the in the Q that we filed this afternoon. There's a few more specifics on the hearsay business and their contribution in Q3, but you know at the end of the day and we view the sort of legacy <unk> business is pretty stable you know when you when you sort of back off the the air our.
Speaker Change: From here say at the end of Q3, which was about 62.8 million and look at the sort of extra rack. There are it. It's it was up a little bit from Q1 to Q2 down a little bit from Q2 to Q3, So we feel pretty good about the stability that we're seeing there you know we talked about in the shareholder letter you know some of the.
Speaker Change: Modest improvements, we're seeing in retention rate. So it's the business there feels pretty stable on the revenue side has another way you could look at it. We also quantified the hearsay revenue in Q3 at $16 4 million and when you sort of look at that you know from Q1 to Q2 to Q3, the sort of legacy X revenues pretty stable as well.
Speaker Change: Also.
Speaker Change: We've got you know Oh.
Speaker Change: Pretty stable business, you know, we've talked a lot about reseller, which is going through a similar dynamic where you know the committee they are or might be coming down, but as we've talked about for a few quarters.
We're really focused on driving up usage, there and you know commitments are great, but its not how we're driving the business and the way that you sort of look through that and see the evidence of that is the reseller revenue and that's been pretty consistent over the past few quarters. Despite that committed they are number coming down. So overall, we feel pretty good about where the business is that.
Speaker Change: The the addition of hearsay.
Speaker Change: Really excited to get through Q4 and into next year to start to you know.
Continue to build on the momentum that we've got post closing yeah.
Speaker Change: Brian just to add to that I think I think the part of your question was sort of explain.
Speaker Change: The delta between the revenue that we had in Q3 and the guide on the revenue guide for Q4, and it would appear that that sort of revenue guidance suggests that the revenue could be down a little bit sequentially I think what you're dealing with there is that there was you know the way that the FX fluctuated there was upside in Q3 and there is downside in Q4 and when you watch those things out there actually you know Theres just really.
Speaker Change: <unk> sort of stability in the revenue, which is what we talked about last quarter and what we expect as we get through the end of the year is that the the kind of revenue picture and the overall IRR picture is stable.
Speaker Change: Stable and then you know, we're really starting to look forward into kind of getting those metrics growing AR.
Speaker Change: As we move into the future, Yeah, and Ryan just to elaborate a little bit on the FX, we did get a benefit from FX and revenue in Q3, but post post October 31, we saw the FX rates come down and that's what we used to set our God.
Speaker Change: I appreciate all the color there I'll hop back in the queue. Thanks.
Speaker Change: That's right.
The next question is from Tom White with D. A Davidson. Please go ahead.
Speaker Change: Great. Thanks for taking my questions, maybe just a couple on hearsay.
Speaker Change: Now that you guys have had a little more time to maybe deeply kind of dive into the books. Just curious if there's any kind of new insights you could kind of share about trends in that business.
Speaker Change: Maybe kind of the quality of the pipeline versus.
Speaker Change: So when we heard from you guys three months ago and.
Speaker Change: And maybe just update on whether there's any I'm curious if there's any difference in kind of the deal cycles for hearsay versus the legacy business.
Speaker Change: Given that it's kind of exposed to like enterprises, having to satisfy compliance requirements I'm. Just curious if it's maybe a little bit more resilient on that front and then I have a quick follow up.
Speaker Change: Yeah, So I would say there's not really.
Speaker Change: Any any big surprises here, we knew the business was growing and it you know in the end.
Speaker Change: That trend continues.
Speaker Change: We.
Speaker Change: As we get through the integration, which we're making great progress against and I really think by the end of the year, we would expect to be largely complete with that.
Speaker Change: What we're seeing is that there's real momentum in that business and that.
Speaker Change: The best conversations, we're having are with our mutual customers.
And also the customers who use one platform and the other about the power of unifying these platforms and having a unified data system and having unified insights.
Speaker Change: So I think when we talk a little bit in the letter about we're starting to see some of the sort of extreme headwinds too you know budgeting and cost cutting that we've seen over the last couple of years abate part of that is we're seeing and it's not just hearsay. It's also.
Speaker Change: On the <unk> side, we're starting to see deals that you now have over the last couple of years of have slowed down are starting to now maybe accelerate a little bit.
Speaker Change: And that I think theres, a feeling overall around the business and around the customers that they've done and look we're in this bucket to we've done a lot of cost cutting over the last couple of years and we now have a margin profile that we see is much more sustainable.
And so you know we're also gonna be looking you know, we're always going to look for ways to optimize that margin profile, but we're also going to be looking for ways to accelerate growth and take advantage of you know I'm not sure we're ready to talk about tailwind yet, but we're certainly ready to talk about some of the headwinds are abating.
Speaker Change: And then to your last question about compliance and the need for financial institutions to be compliant that that need is only going to get greater as the demand for different ways to communicate with the end consumer increases so.
Hearsay has followed a really nice innovation trajectory focusing on compliance social media and then getting into you know a growth area for their business, which is compliant texting and communications.
Speaker Change: We think that the.
Speaker Change: The fragmentation of the search environment also leads to the fragmentation of how do you talk to your customers through different social channels through different communication channels and all of that creates a headache for compliance that we can help solve and so neither.
Speaker Change: Some of the reasons why we're starting to feel a lot better about I think the selling environment as we look forward in the medium to long term.
Mike Wallrath: Okay, great. Thanks, Mike that was a very.
Interesting.
Speaker Change: Just in the letter I think there was you mentioned that you guys continue we'll continue to evaluate M&A opportunities.
Speaker Change: I guess yeah.
Speaker Change: The letter also talks about and you've discussed kind of this fragmentation of.
Speaker Change: Search experiences and I'm just.
Speaker Change: Kind of a search space digital knowledge space kind of continues to evolve quickly I'm. Just curious like are there are.
Speaker Change: Are there any other products like if you look out a few years that sort of adjacent products that you can imagine sort of one thing.
Speaker Change: And I kind of say that thinking about here, saying social like I feel like we didn't hear a ton about you guys talking about social for few years and then all of a sudden we heard about it for a couple of quarters and you decided it was something you needed to have I'm just kind of curious if there are any other kind.
Speaker Change: Head of adjacent products that do you think.
Mike Wallrath: You know Mike.
Speaker Change: Sense for you guys to think about either building or buying.
Speaker Change: Yeah I think.
I think that's.
Speaker Change: A big part of and we've talked about this a big part of the both our development of the Nonfinancial services, social social product as well as the hearsay acquisition.
Speaker Change: We're in we're really driven by our customers.
Speaker Change: They were driven by our customer demand for a for a unified platform that would unify unify listings pages publishing.
Speaker Change: Reputation management search social media Communications compliant communications compliance social media.
Speaker Change: And so what we're what we've done is we've.
We've talked a lot about this we've rebooted the company around the customer and our customers are going to tell us what the most important things for them and so we see opportunities in.
In health care, we see opportunities in.
Speaker Change: Data and analytics and insights and we see really a lot of opportunities to continue to broaden the value proposition to our customers.
Speaker Change: There are two things we're going to remain incredibly focused on one is listening to our customers and understanding.
Speaker Change: Hum.
Speaker Change: And they're in different vertical so so not every not every customer needs. The same things and we're gonna be very focused on delivering the different things that the customers need and then we'll.
Speaker Change: We will continue to take a very pragmatic very disciplined approach to organic growth and Ah and research and development and also the opportunity set.
Yeah.
Speaker Change: Great. Thank you.
Speaker Change: Yeah.
The next question is from Rohit Kulkarni with Roth Capital Partners. Please go ahead.
Speaker Change: Hi, Thanks for all the questions a couple one on the letter you said that last couple of weeks, you're seeing some of these effects of it.
Folks on the board.
Speaker Change: More on digital transformation, and then perhaps a buyback with your guidance.
Maybe ex FX to the extra week and board as well as FX. The only reason for the guidance of.
Speaker Change: So how does the can explain that you've seen in the last few weeks okay.
Speaker Change: Okay.
Tying to what the guidance is and then I have a couple of follow ups on the big picture things.
Sure no problem, so I'll I'll take the second one and let Daryl will talk about the FX stuff.
I think what you have probably come to expect from US is that our financial guidance is going to be conservative are generally speaking in the short term and so.
Speaker Change: We're not going to because we're seeing you know just because we're seeing maybe some some abatement of headwinds and things like that I think we're gonna want to.
To prove that.
Speaker Change: That the the dynamics are there and.
And so we feel comfortable with the guidance that we've given.
There is some FX noise in it which you know I think Darryl can talk and talk in more detail about.
Speaker Change: But.
Speaker Change: Mainly what we are is feeling confident that the business is going to start to perform better from a growth standpoint, but we're not going to get into the business of predicting when that happens until we have clear line of sight to it yeah and I think that's it.
Speaker Change: Deal timing to write like deals that come in in Q4 towards the end of the quarter are not going to really impact revenue all that much but you know the FX you know that we're seeing it. It's it's you know a couple of hundred K at least you know impacting the business in Q4. So you know as Mike said, we want to be thoughtful and conservative about.
Speaker Change: How we put that guide out there knowing that we're still operating in a dynamic environment.
Speaker Change: Okay.
Speaker Change: I think there are a couple of tidbits on social.
Speaker Change: Social.
Speaker Change: It seems like a pretty nimble and quick launch and integration of New Jersey.
Speaker Change: And you've also talked about how you're integrating the conversational AI search and chat.
Speaker Change: Chad.
Speaker Change: Tell me, which I can think of.
Speaker Change: So when I talk about what is the.
Speaker Change: Go to market and where do you see the greatest near term Unfortunately Nic solution.
Speaker Change: Perhaps I'll get a new.
Speaker Change: Logos in all of our upsell opportunities in the near term.
Speaker Change: Yeah, I think it's it's both.
Speaker Change: I do think most of our customers, particularly our larger customers are using something for social today and so.
Speaker Change: Part of it part of the reason why you know really social and hearsay social are two different initiatives that are you know on a you know.
Speaker Change: Long term convergence path, but the needs of nonfinancial services.
Speaker Change: <unk> customers to manage social media and social media analytics for location based marketing.
Speaker Change: Current because.
Speaker Change: Most of the other industries don't have these compliance.
Speaker Change: Features and so we'll look to ultimately converge the strengths of both of those platforms into.
Speaker Change: An offering that is at least converged if not singular overtime.
Speaker Change: But not everybody is going to need the level of sophistication and compliance that they didn't hear sei has.
Speaker Change: It's early on the social side, we launched that product officially in September we feel really good about the product that we've built and we're seeing some headway, which we'll talk about more in future quarters.
Speaker Change: But we know that it's a it's a focus for customers because they've been telling us they don't want to manage multiple systems to handle listings and reputation management and pages publishing and social and all the analytics and insights that go with that we also know that when you when you when you create a.
Speaker Change: Our structured data system, which X proprietary knowledge graph is from our point of view as the best in class structured data system that enables all of that workflow and all of those insights and analytics, you're going to get better results, where where that's going to be.
Where are you going to see that the most is in an environment, where things are getting more complex and so the complexity that we see is that.
As a marketer as a brand.
Speaker Change: As a CEO you're going to have to think about all these different places in all these different experiences where I need to make sure that my products. My stores. My advisors. My doctors are all going to be visible and findable and they're not all going to do it in the same way. So the core of all that is going to be a structured data system that enables you to.
Speaker Change: Have a source of truth and to distribute that data, which is which is synonymous with content.
Speaker Change: And in the future.
Speaker Change: Okay, and if I could ask Mike to be economic and provide your latest thinking on.
The breakdown in the rule of 40.
Mike Wallrath: I have not started that you've had.
Given given where you are with the revenue growth and profitability today.
Mike Wallrath: How do you expect over the next few quarters too.
Speaker Change: I'm going to approach the rule of thumb.
Speaker Change: Alrighty.
Speaker Change: Yeah. So.
Speaker Change: So we've obviously made a lot of progress right and I think you know we haven't put a we haven't put a line in the sand on a date when we expect to get there and we'll continue to talk about the progress that we're making.
Speaker Change: I think we you know from our standpoint, there's a lot of different areas, where we think our margin profile improved.
Speaker Change: Improved a lot in Q3, and we expect it to improve further in Q4 and.
Speaker Change: And we still think theres opportunity there, although we do expect that more of the contribution to you know kind of a rule of 40 growth and beyond will come from.
Speaker Change: From revenue growth and there are different flavors of that as well. So there's there's organic revenue growth and an organic revenue growth and we're going to pursue all of those different levers.
Speaker Change: We've been steadfast since we started that our goal is to be rule of 40 or better and you know, we're obviously much closer to that today than we have been at any point in the last two and a half years or so.
Speaker Change: So it's sort of satisfied but not satisfied.
Speaker Change: Satisfied that we're making good progress, we're not where we want to be yet but.
Speaker Change: We have a trajectory that we think is going to get us there.
Speaker Change: <unk>.
Speaker Change: Okay. Thanks, guys.
Speaker Change: Thanks, Brett.
Speaker Change: Again, if you have a question. Please press Star then one.
Speaker Change: The next question is from <unk> Khan with B Riley. Please go ahead.
Speaker Change: Thanks, a lot so.
Speaker Change: Two questions from me one on Eros that are maybe.
Speaker Change: Just one.
Speaker Change: Can you just.
Speaker Change: Clarify that.
Speaker Change: The direct there are.
Speaker Change: The decline from Q2 into Q3 and if that's the case, then why or why that happened.
Speaker Change: Sure. So what I was saying before is if you. If you if you back out the hearsay contribution to our in Q3 of $62 8 million.
Speaker Change: The sequential decline from Q2 to Q3 is down like I think a million and a half in that range. So on $312 million to $13 million of revenue. It it's down a little bit now some of that could be FX.
Speaker Change: But again like all of our business.
Speaker Change: We've got things up for renewal in each of the quarters and there's a little bit of seasonality in some of the quarters Q4 is generally our biggest quarter in terms of volume. So you know overall, we were up a little bit from Q1 to Q2 down a little bit from Q2 to Q3.
Speaker Change: Obviously, we've got Q4 coming up so that feels pretty stable to us and keep in mind. When we get to Q4 of this year and report Q4, we'll be lapping that large customer churn that we mentioned and that'll sort of obviously impact the growth and retention metrics.
Speaker Change: Yeah.
Speaker Change: So Mike if I can just add a little bit to have Darrell is talking about it I think I think we talked about this last quarter and we talked about sort of the <unk> core business.
Speaker Change: You know being kind of stable and then ultimately getting that business to grow again.
And we talked about here say was a growing business, which it is I think when you think about how we're operating in how we've been focusing in this environment. We've been very focused on you know.
Speaker Change: Solidifying our partnerships with our customers we've been very focused on making sure that they're getting the value that they need from the platform that in areas, where potentially they I mean, and I think a lot of our software peers are drilling. This too that we may have had customers, who overbought licenses and things like that and so there there are still headwinds in there and.
Speaker Change: We're making the kind of long term decisions that we need to make and that's why we're.
Speaker Change: I think right now we find sort of stable air are.
Speaker Change: To be you know I'm going to say, we're not we're not thrilled with it but we're we find it acceptable.
Speaker Change: Because the trends that we're seeing in the business, we're seeing that we've seen three straight quarters of gross retention net retention improvement and we've also seen this isn't a number we give out but we've seen three straight quarters of improvement in our overall renewal rate and so that tells us that we're doing the things that we need to do fundamentally to set ourselves up for growth in.
Speaker Change: Future and that we.
Speaker Change: I think we've answered the question about whether or not this is a.
Speaker Change: Melting ice cube or a declining business.
Speaker Change: Now, we can really turn our attention with a with a stronger margin profile and a stronger operating profile and the ability to create operating leverage to the growth picture.
Speaker Change: Got it.
Speaker Change: Okay. So the other of course.
Speaker Change: And I have Mike is is this on your commentary around the <unk>.
<unk> mutation of a search.
Speaker Change: And maybe even more so than that.
Speaker Change: Segmentation of the user.
Speaker Change: So just kind of looking at the trends.
Speaker Change: It's still early in terms of the consumer the consumer behavior and how much of that is changing which is just a proliferation of product types out there.
Speaker Change: It seems like the consumer is still kind of very much.
Speaker Change: Still on search so the change may be happening I'm endured as set out on that in terms of how much that can happen any thoughts on like how quickly you think things might change.
Speaker Change:
Speaker Change: Or you know how.
Speaker Change: If they don't change then you know how it works is listening in that case also.
Speaker Change: Yeah. So I think I mean, I would I would heavily discount the notion that there's a scenario where things aren't going to change.
Speaker Change: We've seen enough to know that there are going to be really interesting ways that human beings interact with AI that take on a different shape in a different form than what we've seen traditionally from search which has become.
Speaker Change: You ask a question in Boolean you ask as search language question and you get a bunch of links and a bunch of sponsored links and things like in a structured you know sort of search results page. We know because we can see the consumer behavior, that's happening across open AI in perplexity and Facebook with their search engine.
Speaker Change: And Apple intelligence that theres going to be a lot of different ways that.
Speaker Change: Customers explore questions that are top of mind for them one of the things that I think is harder to predict is when do we move from there being a lot of choice on exploration so to a lot of choice on the exploit right. So we talk a lot. When we talk about search you talk about the <unk> and the customer journey Theres a lot of.
Speaker Change: Exploration that precede the final exploit which is when I'm ready to buy something I ask a different question Where's the best place for me to get X Y Z product at this price right. That's an exploit question, but there could be countless interactions.
Speaker Change: Historically with our search.
Speaker Change: Platform like Google asking for exploration information about those questions and so I think what we're seeing today is that there is a lot more exploration happening on.
Speaker Change: On different experiences which include the AI search experiences, we're seeing much more search happening on social media networks like tick tock and things like that we're not yet seeing is evidence that there is a significant amount of sort of transactional exploit happening across those experiences but.
Speaker Change: Our faith in you know kind of capitalism and the way that the world work says that.
Speaker Change: Those search generative experiences are not going to be satisfied with just being exploration engines and that theres going to be a lot more exploit.
Speaker Change: The way that they're going to do that is they're going to look for where can I get data that makes it easier for me to make my generative search experience exploitable I need I need structured data I need products information I need location information I need access to two two things like that in order to be able to deliver answers to questions.
Speaker Change: So one of the things that we see today and I apologize its a long answer but I can give you a thorough answer to your question one of the things. We see today is that on a lot of these generative search experiences. When you asked the question about where can I get a great Hamburger near me.
Speaker Change: They're likely to tell you that you're going to need to go to sites like yelp or Google and places like that to get the answer to that question I think in order to believe that things aren't going to change you have to believe that those.
Speaker Change: Those consumer.
Generative search experiences are going to be satisfied with only the explore and not the much more monetize able exploit inquiries. We just don't believe that's the case and we think that you know our advice to.
Speaker Change: Everybody is it's time to get your data in order. So that you are ready to manage the exploit as the exploit element of this.
Speaker Change: Fragments.
I hope that makes some sense.
Speaker Change: No it does and I appreciate the detailed response. Thank you. Thank you Mike Thank you Dara.
Speaker Change: No.
Speaker Change: This concludes our question and answer session.
Speaker Change: I would like to turn the conference back over to Michael Roth for any closing remarks.
Michael Roth: Just like to thank everyone for joining us today and look forward to speaking to you in another quarter if not sooner.
Speaker Change: The conference has now concluded. Thank you for attending today's presentation you may now disconnect.
Speaker Change: [music].