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spk02: Hello and welcome to the Bandwidth, Inc. fourth quarter and full year 2023 earnings conference call. All participants will be in listen-only mode. Should you need assistance, please signal a conference specialist by pressing the star key followed by zero. After today's presentation, there will be an opportunity to ask questions. To ask a question, you may press star, then one on your telephone keypad, and to withdraw from the question queue, please press star, then two. I would now like to hand the call to Sarah Wallace. Please go ahead.
spk00: Thank you. Good morning, and welcome to Bandwidth's fourth quarter 2023 earnings call. Today, we'll discuss the results announced in our press release issued earlier this morning. The press release and an earnings presentation with historical financial highlights can be found on the investor relations page at investors.bandwidth.com. With me on the call this morning is David Morkan, our CEO, and Daryl Rayford, our CFO. They will begin with prepared remarks, and then we will open up the call for Q&A. During the call, we will make statements related to our business that may be considered forward-looking, including statements concerning our financial guidance for the first quarter and full year of 2024. We caution you not to put undue reliance on these forward-looking statements, as they may involve risks and uncertainties that may cause actual results to vary materially from any future results or outcomes expressed or implied by the forward-looking statements. Any forward-looking statements made on this call and in the presentation slides reflect our analysis as of today, and we have no plans or obligation to update them. For a discussion of material risks and other important factors that could affect our actual results, please refer to those contained in our latest 10-K filing as updated by other SEC filings, all of which are available on the Investor Relations section of our website at bandwidth.com and on the SEC's website at sec.gov. During the course of today's call, we will refer to certain non-GAAP financial measures A reconciliation of GAAP to non-GAAP measures is included in our press release issued earlier this morning, as well as in the earnings presentation, which we are located on our website at investors.bandwidth.com. With that, let me turn the call over to David.
spk03: Thank you, Sarah. Welcome to Bandwidth's Q4 2023 earnings call. We're pleased to report we exceeded our guidance for the fourth quarter, capping off a full year of solid execution. We grew and diversified our revenue by adding a number of significant customers across our commercial messaging and direct to large enterprise categories. We invested in our business and introduced new products like our next generation Maestro platform and AI bridge. And we grew profitability 39% year over year, delivering record-adjusted EBITDA in the fourth quarter and yielding record second-half free cash flow. The team is grateful and honored by our customers' trust and bandwidth to provide their business-critical communication services around the world. Thank you to our bandmates for serving our customers, executing our mission, and delivering these strong results. And I thank God as we charge into our 25th year as a company. Last year, during our investor day, we laid out a four-year plan and said we were more confident about our mission to develop and deliver the power to communicate than when we started the company or at any time since. After exceeding our plans for the first year, we are even more confident today. That's because bandwidth is leading in the front ranks of the worldwide cloud communications revolution, which is a secular trend still in its early stages. Automating voice, text messaging, and emergency calling through cloud software is the fastest way for enterprises to build a better brand experience, reduce operating costs, leverage emerging AI technologies, and simplify and de-risk digital transformation company-wide. And they're doing it with bandwidth because we are the only provider in our space with a unique combination of global owned and operated cloud network, AI-ready capabilities, programmable software APIs, and deep regulatory insight. Today, we are the only CPaaS provider with our own global communications cloud. The depth and breadth of our competitive moat is evidenced by the fact that we serve all the world's leading power platforms in cloud communications as recognized by Gartner Research. Whether it's iconic hyperscalers like Microsoft, Google, or Zoom for hybrid work, customer experience pioneers like AWS, Genesis, and Five9 for cloud contact centers, or the many innovative SaaS and application companies building text messaging into everything from healthcare to conversational e-commerce, bandwidth is their communications cloud. All these players count on us for global reach, scale, reliability, security, leading edge innovation, and incredible customer support that is always available 24-7. During the past year, we continued to expand our investment in innovation with a launch of many new features and capabilities. In our global communications plans category, we improved our already best-in-class customer experience with expansive new self-service capabilities. That's why TNS, a provider serving 27,000 separate businesses, switched bandwidth from a key competitor, placing their trust in us as the sole provider for their mission-critical toll-free calling and other programmable voice services. In our enterprise category, we launched 10 new products, including Bandwidth Maestro, our AI-ready, next-gen software platform, which was judged by our peers to be such a game-changer that it won Best of Show at Enterprise Connect. In fact, industry recognition for Maestro continues, as it won a Product of the Year award from Internet Telephony just last week. These new offerings, each substantial in their own right, drove our opportunity pipeline to new highs, accelerated our enterprise revenue growth 21% year over year, and led to new customer wins like Ally Financial, Western Union, Children's Health, Fabletics, and so many others. All chose bandwidth to improve their customer experiences and to adopt conversational AI. In our programmable services category, we are adding new global two-way messaging capabilities in more markets around the world, which we expect to continue to fuel our growth. Last year, we grew commercial messaging 32% year over year. The most demanding high volume senders are using our global messaging API for diverse commercial use cases across FinTech, healthcare patient engagement, civic engagement, conversational e-commerce, and more. Like WellSky, for example, a premier health and community care technology provider in North America, which in Q4 moved the rest of its HIPAA-compliant messaging and voice to bandwidth from a competitor, trusting us to deliver vital communications between their more than 600,000 caregivers and 4,000 personal care agencies across the U.S. and Canada. In 2024, We expect our growth in commercial messaging to be joined by further benefit from the U.S. election season, where our capabilities uniquely serve many long-standing customers. Each one of these examples demonstrates the growth and rapid innovative capabilities of the bandwidth communications cloud. As we reflect on the past year, we are pleased with our execution and forward momentum through any crosswinds in the current macro environment. For example, we hosted more in-person visits in 2023 from large global 2000 enterprise customers and prospects than in any other year by far. We launched Maestro and AI Bridge, our biggest innovations ever. And as you would expect from a durable franchise, our profitability has shown remarkable growth significantly outpacing our revenue increases as we deliver on our promise to grow revenue profitably. As we enter our milestone 25th year as a company, we are more confident in our mission and our opportunity than ever before. I'll now turn it over to Daryl to walk through the details of our financial results and outlook.
spk10: Thank you, David, and good morning, everyone. Our team performed exceptionally well in the fourth quarter, rounding out a solid year of consistent performance and positioning us to reach our 2026 medium-term targets. We're proud of what we've accomplished and confident that our dedication, hard work, and unwavering commitment to excellence will continue to drive us forward. The team's laser focus on accelerating sustainable, profitable growth is evident in our results once again. with fourth quarter and full year revenue and adjusted EBITDA both exceeding high end of guidance ranges, as we benefited from strong usage in commercial messaging and operating discipline. Fourth quarter total revenue of $165 million increased 5% year over year. Cloud communications revenue, which is total revenue excluding pass-through messaging surcharges, was $126 million, up 12% when excluding the year over year effect of $11 million of cyclical political campaign messaging revenue in 2022. Our full year 2023 revenue was $601 million, up 5% year over year. Cloud communications revenue was $479 million, also up 5% year-over-year when excluding last year's political campaign messaging benefit. Messaging continues to be a valuable tool businesses use to engage with customers and differentiate themselves in the market. The strong demand for messaging and bandwidth software automated ability to deliver at scale drove 32% revenue growth year-over-year in commercial messaging, driven by increasing usage in conversational e-commerce, conversational marketing, and financial services sectors. Total messaging for the full year reached 18% of cloud communication revenue. At Investor Day one year ago, we provided a new view of our revenue by market offer and shared our expectations and market growth rates for those three categories. In our global communications plans category, Revenue growth for 2023 was roughly flat as expected due to usage patterns in the macro environment last year. In 2023, our programmable services category, which primarily utilizes our messaging portfolio, delivered commercial revenue growth of 31% year-over-year. This growth in our programmable services category far outpaced the expected market growth CAGR of 21% we cited at our Investor Day one year ago. We're very pleased with this performance, which provides meaningful support towards our 2026 medium-term revenue and gross margin targets. Last year, in our direct-to-enterprise customer category, we grew 21% year-over-year, handily exceeding the estimated market growth tagger of 14% shared at Investor Day. Our customers love bandwidth software automation. Our capabilities to simplify global communications, facilitate migration to the cloud, enable conversational AI experiences, and orchestrate call flows between best-in-breed platforms aligns perfectly with the goals and objectives of the Global 2000. I'd also like to remind you that programmable services and direct-to-enterprise enjoys gross margins in excess of our aggregate company gross margin of 55%. We're thrilled with the trajectory of the programmable and enterprise categories and expect them to be consistent contributors to achieving our 2026 medium-term gross margin target of greater than 60%. Now, turning to operating metrics, average annual revenue per customer continued to climb, reaching $178,000 in the fourth quarter, reflecting our continued focus on and ability to serve large customer opportunities. Our customer name retention rate once again remained at excess of 99%, a result that speaks to the loyalty and durability of our customer base. Our 2023 net retention rate, which understandably reflected downward pressure from the absence of 2022 campaign revenue not present in 2023, was 101%. Adjusting for that absence, Our net retention rate achieved 109%, an excellent growth result from our commercial customers for a year characterized by macro crosswinds. I'm especially proud of our outstanding progress in accelerating profitability and generating cash. We achieved a record 39% growth in adjusted EBITDA in 2023 and reached an inflection point in free cash flow. generating a record $31 million in the second half of the year. We ended the year with a cash and securities balance of $153 million, far exceeding our business needs and providing us with a great deal of financial flexibility. We're excited as we look ahead to 2024, where we're expecting continued accelerating growth in commercial revenue and a tailwind from cyclical political campaign messaging related to the U.S. election season. Revenue in 2024 is expected to grow 16% to approximately $700 million and assumes a projected $40 million contribution from political campaign messaging and associated surcharges from the U.S. election season. We expect to continue our acceleration in profitability with adjusted EBITDA growth of 50% year-over-year, accomplished through a combination of higher revenue and continued operating and spending discipline. We also expect 2024 free cash flow margins to make further progress towards our medium-term target of 15% margin and provide the flexibility to address our 2026 convertible notes and fully fund our business needs. I'd like to put a fine point on our healthy balance sheet. As I said, we ended 2023 with $153 million in cash and securities. Our March 2026 debt maturity has an outstanding face value of $175 million. With our adjusted EBITDA projection of approximately $72 million in 2024, a relatively light capital expenditures outlook of 3% of revenue, and modest working capital, it's reasonable to project we could generate approximately $50 million of cash yielding a year in cash and securities balance clearly in excess of our 2026 debt requirements. A full 14 months in advance of that maturity. All of this gives us confidence in reiterating our 2026 medium term targets of 15 to 20% revenue CAGR greater than 60% non-GAAP gross margins, greater than 20% adjusted EBITDA margins, and greater than 15% free cash flow margins. In closing, I want to emphasize the remarkable journey Bandwidth has embarked upon this past year. Our record-breaking performance in profitability and free cash flow, alongside the successful launch of our groundbreaking Maestro platform, underscore our unwavering commitment to innovation and excellence. The trust and partnership of our global customer base, powered by our unique blend of software automation, global network, AI-ready capabilities, and regulatory expertise, solidify our leadership in the cloud communications revolution. Looking ahead, we remain focused on leveraging our competitive strengths to drive sustainable growth, enhance customer experiences, and deliver long-term value to our shareholders. I am incredibly proud of our team's hard work and dedication, confident in our clear and focused strategic direction, and excited about how we are executing the vision we outlined at Investor Day one year ago. Thank you again for your continued support of Bandwidth. I'd now like to turn the call over to the operator to begin the question and answer portion.
spk02: Thank you very much. We will now begin the question and answer session. To ask a question, you may press star then 1 on your telephone keypad. If you are using a speakerphone, please pick up your handset before pressing the keys. To withdraw your question, please press star then 2. We will now pause momentarily to assemble our roster. Today's first question comes from Arjun Bhatia with William Blair. Please go ahead.
spk07: Perfect. Thank you and congrats on the strong results here and the positive outlook for 24. I want to start maybe just on some of the traction that you're seeing both in the enterprise and programmable services, but I certainly wanted to maybe think about it a little bit from a new customer perspective. I know you mentioned there was a pretty strong pipeline going into Q4, and it sounds like you executed on that. But if we kind of calibrate the net retention rate versus the top line growth that you're delivering, it seems like there was quite a bit of traction. Maybe can you just talk a little bit about what you're seeing on that front and whether you're seeing more opportunities from competitors come in into Q4 and going into 2024 here.
spk03: Thanks, Arjun. This is David. We are enjoying strong success in both enterprise and programmable services. The success is across different verticals and from different competitors as well as greenfield opportunities, so the pipeline is deep in large opportunities, and so we're benefiting from that. We called out a number of different specific customer cases, and in In those, again, we're winning across competitors and across verticals based on the efficiency and the uniqueness of the platforms that we offer and the global network. So the pipeline has been not just successful ending 23, but it looks robust going into 24.
spk07: Okay. That's very helpful. Just when you're thinking about Maestro and AI Bridge, can you give us a sense of where you are in adoption? Because those certainly seem like, you know, potential game-changing products. And, you know, is that still kind of a little bit in the exploratory phase with customers, or are we starting to see real adoption of those solutions yet?
spk03: We went GA mid-year and are experiencing real, genuine adoption and scaling across enterprise customers today. Again, our AI strategy is one that we embarked upon long ago. And we have a very strong conviction that it's early days in terms of picking winners in AI. And what's more vital to the enterprise global customer is having a platform that allows them to integrate leading AI opportunities as they emerge into their existing environments and to do so easily, to do so quickly with integrations that are already done on Maestro. And so both of our product initiatives in the AI space are bearing fruit already, even though we only went general release mid-year.
spk07: All right, perfect. Great to hear. Congrats again. We'll talk to you soon. Thank you, Arjun.
spk02: Thank you. The next question is from Ryan McWilliams with Barclays. Please go ahead.
spk08: Thanks for taking the question. David, how are your enterprise customers talking about 2024 at this point? Do they feel better? Do they expect to grow off 2023? And for Daryl, how should we think about some of the drivers of the solid four-key revenue growth that you saw in the quarter? Thanks.
spk03: You bet. So when we think about our enterprise customers that we work with today and how they're talking about their business, of course it varies widely. We have tremendous customers in hyperscaler, examples among our internet giants. We've got financial enterprise customers. Everyone's experiencing a different variable depending upon the vertical that they're in. Certainly, we have always tuned into and projected in a usage-based model how our customers are doing in real time and factoring that into our guide. So as we think about the broader macro, we've executed and navigated across different choppier currents in 23 and think that 24, as our strong guide indicates, is filled with even more promise than last year.
spk10: Thank you, and thanks, David. And Ryan, to your question, you're right. We did finish 2023 very strong in the fourth quarter. We grew cloud communications revenue sequentially $6 million. Part of that is related to, you know, we grew our commercial messaging, commercial meaning not with the political campaign effect. We grew commercial messaging 32% for the year, and we grew it 66%. in the fourth quarter off of a 51% growth in the third quarter. So, of course, that helped. We also had the seasonal benefit of Black Friday, Cyber Monday, which we had included in our guide. But the overachievement of Black Friday, Cyber Monday also, you know, shines through in these results.
spk08: Excellent. And last one for me, I'm really impressed by the profitability improvement versus the year prior, and especially with the guide going forward. How can we see bandwidth achieve better leverage? Like besides revenue growth, like what are some of the line items or what are the things that you're doing to just be able to put through some of these better or just to be able to freak out some numbers?
spk10: Well, that points to our medium-term targets where we've set out through 2026 the 15% to 20% revenue CAGR. growing to above 60% growth margin and growing to above 20% EBITDA margin, yielding an above 15% free cash flow margin. So how are we doing that? Well, yes, revenue growth. We have the four drivers for gross margin, which includes scale, product mix, our international growth, and operating efficiencies, and we're on track to do that. And we set an investor rate, and we're continuing to focus on that as a percent of... cloud communications revenue, our operating expenses last year was down from 2022 as a percent, but still above 40%. We're going to be scaling to something at 40% or slightly less. And so while we do expect our operating expenses to continue to increase, led primarily by our innovation investments, we expect to get scale out of our operating expense, and we have been doing that, and that will yield us above 20% and above 15% free cash flow.
spk08: Appreciate that, Keller. That's great. Thanks, guys.
spk02: Thank you. The next question comes from Meta Marshall with Morgan Stanley. Please go ahead.
spk01: Great. Thanks. Maybe a couple questions. So you guys laid out that political messaging would be about $40 million in 2024. So what would be the biggest contributor to the rest of kind of the growth that you're expecting, considering that'll only be about half of the growth? So is it kind of continued growth and commercial messaging? Is it some of, you know, Maestro? Is it some of the other products kicking in? Just a sense of where you're seeing the rest of that growth come from. And then maybe just a second, you know, any update on kind of the CCAS relationships that you've joined or kind of that channel as a driver of growth? Thanks.
spk03: Thanks, Mita. To answer the first part of your question, we are seeing our strongest growth among enterprise customers in our enterprise segment. That's growing fastest. Commercial messaging turns out to be quite durable, even among customers that do participate in cyclical campaign-related activities. And so they're diversifying their practice and their business. So yes, commercial messaging is going to continue to be buoyant. And as we look for the medium-term targets to be achieved in 25 and 26, both enterprise, commercial messaging, global messaging, which we just launched, will all contribute significantly toward us doing what we've consistently done, which is achieve the guidance that we lay out.
spk01: And then the update on the contact center. Yeah. Yeah. I think...
spk03: Yeah, I think – and just to make sure, can you repeat the question so I understand what part of the contact center dynamic you're focusing in on?
spk01: So I think you had done some relationships with Five9 and others, so I just kind of wanted to get a sense on that as a channel of growth.
spk03: Yeah, you bet. I think what I would call out is the customer case that we mentioned for the quarter. Contact center is healthy, and we, with Fabletics, were chosen – to power their Genesys cloud experience and did that by winning away that business from an incumbent. So we're hand in glove with Genesys and that contact center with that customer, which is a tremendous opportunity that we took away from an incumbent. And so we're seeing more and more conquest opportunities against incumbents in our pipeline in contact center. So for us as a challenger, we're seeing great success that may separate us and distinguish us from others in CCaaS and those of us powering the contact center in enterprise.
spk02: Great. Thanks. The next question comes from James Fish with Piper Sandler. Please go ahead.
spk05: Hey, guys. Nice end of the year here, and I appreciate the morning call, actually. I like it. Just going back to a question a little bit ago, what are you guys seeing for maestro attach, or how should we think about maestro sizing at this point? And I know we've talked about different monetization strategies with it. Which strategy is kind of gaining the most traction at this point?
spk03: So in terms of attached chains, it's the catalyst or the inflection for enterprise conversations regarding how they're doing voice and messaging for their constituencies, even with their employees. Because it's a platform that allows them to orchestrate voice and messaging elegantly across different solutions, it is the catalyst conversation. You have to have a vision and an execution path forward regarding AI, and if you don't have one that's both effective and takes into account how fluid things are, you're not going to win. Right now, what we are seeing across incumbents we compete with and win from is a complete lack of vision for supporting any of the creative emerging opportunities for enterprises using voice and messaging with AI. And so our orchestration tool Maestro was generally released for availability mid-year. It is already being engaged by dozens of enterprise customers successfully at GA. And the monetization strategy to address the second part of your question, What is getting the most traction is what we've consistently maintained, which is in addition to the usage-based model that we have, this for us is a very real new opportunity to serve customers in a software platform model that monetizes as you would expect SaaS software to happen. So a platform fee and gross margins that you would expect from SaaS software.
spk05: Makes sense. And Daryl, for you, on the guide, you know, can you help frame it up a little bit more in terms of what you're expecting for expansion rates? And back in 2022, appreciate the political messaging color there, but back in 22, you guys had just about 40 million, if my numbers are right here, and it wasn't really the major election cycle. So why wouldn't it be higher given it's kind of a bigger stage at this point? And Any way to think about the three product segments for the year end? I know a loaded question. Appreciate the detail. Thanks, guys.
spk10: No, I love 18-part questions. Thank you, Jim. Appreciate you. Appreciate all that. Let me start with walking through just a breakdown of the guidance. I think that will be helpful. We're called in our outlook essentially $100 million of revenue growth in 24 over 23 years. You can think of that breaking into $50 million in cloud communications revenue and $50 million in surcharges. Of the $50 million in increase in cloud communications revenue, that's essentially two-thirds coming from, in our view, in our outlook, two-thirds coming from our commercial, which means nonpolitical, our commercial revenue growth, and a third coming from political revenue. We did experience, taken all together, around $37 million of revenue off the 22 election cycle. We're calling in our guide around $40 million for this. So you're right, about 10%, something a little less than that up. It is possible, it is certainly possible it could be higher. But we're calling for it to be around $40 million right now. Now, in terms of the second part of the question, which was related to the categories and the categories, I believe, driving our 24 view, we are calling for each one of the categories. It's embedded in our guide to have a revenue increase. Our largest revenue category is global communications plans. It will likewise be the increase. The revenue will likely will probably be more muted because of its large base. We just experienced 32% revenue growth for commercial messaging in the 2023 full year. But again, that was 51% in Q3 and 66% in Q4. So we see accelerating growth in terms of our commercial messaging, which is driving principally the programmable services growth. Those are the commercial use cases. that are not political and are related to the use cases that David and I had called out on the call. And in enterprise, we did grow 21% enterprise for the year. Our pipeline looks really good. Enterprise is a very profitable growth for us, given the dynamic. And, of course, it's also a major – it's a – once adopted, a very sticky and very loyal, very durable customer base. And so we are expecting that to well outgrow the 16% overall guide that we've given on the $100 million increase to the $700 million for 2024. Does that help, Jim? Did I catch it?
spk05: Yeah, yeah. Apologies for the loaded question. Just had a lot of details there that we needed to understand. So thanks, guys. Awesome. Thank you, Jim.
spk02: Thank you. The next question comes from Mike Walkley with Canaccord Genuity. Please go ahead.
spk04: Thanks for taking my questions, and congrats on the strong results. I guess the first question for me, just going back to the political messaging, I live in a state that's already had primaries and received a lot of political messaging. So for that $40 million, is it still kind of a Q3, Q4 heavy-weighted, or how does that kind of ramp throughout the year?
spk03: Hey, Mike, I think that it's rational to expect increased activity throughout the year. Super Tuesday is actually an inflection point earlier than the back half. But yes, I think post-primary with the candidates selected for both sides, you'll see accelerated growth throughout the back half.
spk04: Okay, great. That's helpful for modeling. And then just in terms of the success you're having with your larger enterprise customers, are you still in the process of churning some lower spend customers, and how are you seeing our trends building with the larger customer base?
spk10: You know, we are. Our customer base remained relatively, right at steady, like exactly steady at the 3300 figure and change. We removed or churned 80 customers in that figure, and right at the exact same number, we added customers, so it remained flat. I'm really excited about the 80 ads. I'm excited about the fact that our ARR per customer once again increased, now reaching $178,000 because it's exactly on strategy to where we want it to be with our Global 2000 and our larger customer opportunities. And the 80 that we churned are something around $2,500 annual revenue. And so that's just really not a concern for us. It's right on strategy to where we think we need to be.
spk04: Great. That's helpful. Thanks, Jake. Mike, questions? Thanks, Mike. Thank you.
spk02: The next question comes from Ryan Kuntz with Needham & Company. Please go ahead.
spk06: Thanks for the question. Sorry about my voice here. Nice to see the voice business returning to growth. Can you walk us through maybe, David, how your go-to-market is developing for enterprise, any metrics there you can share in terms of you know, headcount where you've been and where you're going in terms of that team? Thanks so much.
spk03: Great question. Unlike so many of our competitors, our go-to-market team is as large or larger going into 24 than it was going into 23. So we have only continued to put the fuel on the fire that we have consistently used going forward. So many in so many different spaces have eviscerated go-to-market teams in sales and marketing, sales ops, and we haven't. We haven't done any layoffs. And so we are fully loaded for bear in the enterprise space, going out and prospecting new customers, and we're also fully staffed supporting existing customers. So again, unlike so many other company profiles, we've held the line on growing our team, and the benefits are manifest in the 23 report and also in the 24 guide.
spk06: Thanks, that's great to hear.
spk02: Thank you. The next question comes from Patrick Walravens with Citizens JMP. Please go ahead.
spk09: Oh, great. Thank you and congratulations. Hey, Dave, can we go back in time a little bit and talk about how Internationals worked out? So you acquired VoxBone in 2020 and I remember originally you had Lighthouse customers that were pushing bandwidth to provide some kind of great communication services in Europe that they had in the U.S., and then COVID made the integration really challenging. So how has that all worked out? How is international versus the U.S.?
spk03: Hey, thanks, Pat. It is 18% of our total business, but much more meaningful than that reflects. Every conversation with a global 2,000 customer includes our 65 countries where we have full PSTN replacement, emergency service, inbound, outbound, and now just recently includes international messaging. So it has been vital for our customers that they can use us as a single partner globally, and that role is essential in a world that's become very fragmented where regulatory pace of approvals have, if anything, slowed down. So international strategically was an essential component. You're right, it was slow for us during COVID doing the integration, but heroic efforts by the teams to unify. And indeed, we are coming to the end of having a single global platform and experience for our customers post-Boxbone acquisition. We're thrilled about it. Our team has worked long to get there. But back to the crux of your question, 18% of our business and growing, and we expect it to continue to grow with the addition of global messaging right now, but vital for every single enterprise conversation.
spk09: All right, great. Thank you.
spk03: Yes, sir.
spk02: Thank you. This concludes our question and answer session, and the conference has now concluded. Thank you for attending today's presentation. You may now disconnect your lines.
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