NV5 Global, Inc.

All right, good afternoon everyone. Hope everyone had a good lunch. I'm Michael Byrd, MidCap Analyst here at Wells Fargo. I'm pleased to be joined here with the CEO of Vimeo, Phil Moyer. Phil, thanks for joining us today. Thanks for having me. Absolutely, hope you're enjoying the nice weather here in California. It's been fantastic, absolutely fantastic. Awesome, well, I think a good place to start for me and the rest of the audience, for those who may not be familiar with the Vimeo stories, just maybe give a quick background of Vimeo. I think we've all seen the consumer-facing videos, but maybe just give a broader sense of what the business is today and where it's going.

Sure. So Vimeo is a -year-old company. We just actually celebrated our 20th year anniversary. We're a little bit older than YouTube. We invented the like button a long time ago on the internet, four years before the Facebook had it, so we created that little heart. And we were known for a long time by filmmakers and movie makers for high-quality videos. So people would upload videos to a store and then serve that video to whoever. And over time, the business has gone through many different business models. It's spun out of IAC. And it IPO'd kind of at the peak of COVID with video. And we had a lot of focus on things like live meetings. We had a lot of focus on things like serving up kind of almost like a television channel in some cases. We bought some creative tools. And some of those models just didn't pan out. I came in approximately eight months ago and with a very, very significant focus, my background is enterprise computing. Worked for Google, Microsoft, and Amazon over the years and have a very, very specific focus around taking what is a great self-service business and taking it into the enterprise. And so today, just to kind of give you a perspective, Vimeo gets about 100 billion views of video around the world. Only 20% of those videos are on our site. The 80% are in other sites. And so when you go to many, many sites around the world, you're actually looking at Vimeo videos. You're looking inside of e-commerce sites, in learning systems. You might be looking at municipal government websites and you're seeing videos. And so the business has moved from being kind of primarily a self-service up into this enterprise business.

And so maybe just touching on enterprise, what's the fundamental difference between what a prosumer wants to upload a video to YouTube versus the enterprise? And maybe the enterprise business is now a hundred million dollar business, over 10% of the overall revenue mix, growing much faster. What are the use cases within enterprise beyond some of the ones you mentioned? I think we were discussing earlier, you mentioned something like a hospital, but maybe help educate us what some of these enterprise use cases are that gives you confidence that that market is ripe to sell into.

Sure, so today, that self-service business is about 200 million, a little bit over a $200 million business force. The enterprise business just pushed through about a hundred million dollar run rate in bookings. It was growing about 40%. And what's happening in the enterprise today on the consumer internet, video is 82% of the consumer internet. But video for the enterprise was very expensive. Used to cost 10, 20, $50,000 to go and produce a video. With all the AI tools that are coming out and all the new tools, whether or not it's Canva, Sora, Mid Journey, Runway, pick your favorite AI model, pick your favorite tool, the pervasiveness of video is starting to become everywhere inside of the enterprise. And so we're seeing video come into the enterprise the same way it's in the consumer space. In the past, you'd use video for marketing videos. Car companies would spend $100,000 to produce a beautiful or a million dollars to produce the perfect video. And then some of their internal communications, like the CEO's message would get broadcast out. Today, we work with some e-commerce platforms as an example and they require every third party video product on their platform to have a video. Because you're 64% more likely to buy a video or buy a product if you have a video. So with that customer, we have over a million videos just for that customer alone that have just recently come to us. In healthcare, after you visit an orthopedist, you're roughly about 60 to 70% more likely to adhere to your protocol if you watch a video versus getting a stack of paper that you don't read. Because you have 91% better retention and 87% better retention span when you watch a video. So we're seeing video come into healthcare. We're seeing it go all over the e-commerce marketplace. We're seeing it show up in customer support. We're seeing it in sales. Organizations like Gong, you have now agents that join your sales calls so that you can track to say, did you listen to the customer enough? Did you pause in between? Did you actually articulate the message well enough? And so we are partnered with Seismic as an example in their sales software. And so what we're seeing is that in the past, it was marketing and internal communications. Now it's showing up in literally every department. And so when we're landing these larger customers, the new part of our business is exciting in enterprise, but the expansion part of our business is equally exciting because we're going across all these departments, which is why you're seeing such growth in our market.

So you mentioned AI, so I feel the need to ask. A lot of stuff is going on, like you mentioned the number of the vendors. Not too many, to my knowledge, some of the video AI creation tools are GA or publicly available yet, but on the horizon. So it's fair to say that content explosion is probably gonna occur. Where does Vimeo sit into that? If I can create a five minute video on whatever topic of choice, very like that, and that happens all over the world, how does Vimeo benefit from that? So we could not be more excited

about this. I encourage you to go out and look at the publicist CEO. For his holiday message for his employees, he normally sends out a single video. This year he sent out 100,000 individual videos to every one of his employees. He had your name tattooed on your arm. If you were into sports, you played tennis, he was playing tennis. If you were a skier, he was skier. Someone has to create that video, someone has to store that video, someone has to serve it to the appropriate employee, and if they say something wrong in that video, they have to be able to retract it. And so that need to be able to manage the sudden mass personalization of video at scale of hundreds or thousands or even millions of videos, we view it as a huge opportunity. Now we're not building AI like the big tech companies that I mentioned, like the Googles, the Amazons, the Microsofts. We're leveraging their balance sheets. So we're using their AI in the same way that we leverage their cloud. We just recently launched translation in 29 languages. And so all of those videos that I talked about, whether or not it's marketing, whether or not it's e-learning or otherwise, you can now suddenly translate your videos. Now in the past, that would cost you about $10,000 per video to have humans translate that video. We're now able to use AI to be able to translate it. If you've got to put it into German, you have to stretch the video because the sentence lengths are longer. Or if you put it into Chinese, the sentence lengths are longer. So we actually have to stretch the frames and actually add frames to it. We're also doing things like indexing your video. Now why is that important? Well, because I can ask a video a question. If I want to integrate video into a customer support, say for example, I'm having a problem plugging my HDMI cord into an LG TV. I can ask the chat bot, how do I plug this HDMI cord in? Well, we can go right to the section of the video and show you precisely where to be able to plug that cord in. Or I can ask the question of, we have one of our large customers is one of the largest e-learning platforms for drumming. So I can say, bring up, stairway to heaven and show me where the symbols are used, and you're able to now have interactive queries of your videos. And we host e-learning platforms for many, or I'm sorry, e-learning video platforms for many, many large companies. And so this ability to be able to index your videos, ask it a question, integrate it into customer support, translate your videos, we're able to help you manage all of those things.

Maybe taking the flip side of AI, there's a lot of concerns, right? Whether it be deepfakes, whether it be just wrong information. How can you help mitigate those risks to help the adoption curve of AI, or AI videos specifically?

So I describe this problem really simply. We face deepfakes as long as humanity has had, I'll say, any printed word. It was the reason why we created wax symbols for the king, to be able to prove that something was actually from the king. Now, there's techniques inside of artificial intelligence called watermarking. There's a new standard that's emerging. So we're able to actually use watermarks to be able to say this was created using artificial intelligence, and we can say this is who the creator was that it came from. The same way in the financial industry, you have KYC, Know Your Customer. We think that we're gonna be able to support things like Know Your Creator in our space, because we serve today millions of creators. Another example is that in Illinois, if you wanna use that translation feature I mentioned to you, it's illegal unless you have a person's consent, because you can't put words in someone's mouth in a video in Illinois. Today there's over 1,000 regulations. Last year at this time, there was about 41 regulations in AI. Right now there's 1,000. In the United States, 40 of the states have at least three different AI legislations that are working their way through. Over in Europe, you have to do things like identify AI content. And so the reason why we're so excited about AI and video in the enterprise is because we're not just a platform to serve video, we're also a platform to help you govern and stay compliant with video, which is increasingly difficult for enterprises. When you imagine in the past, they had video spread out all over, there's no central library. And so there's no central way to manage the cost, the compliance risk, what's being created, where it is, what's being said in that video. And so we really represent a really unique offering in the enterprise, which is one of the things that's driving our business.

So you've touched on a number of features and value adds that Vimeo provides, particularly the enterprise recently. But you do a lot more. Maybe you can touch on the various components of your business and the key competitors across each one of those and how Vimeo differentiates itself versus some of those other key competitors.

Sure. So the business grew up being a freemium model, where people were able to come on and just start using us. And to this day, we still have this wonderful freemium model where you can just drop a video up there and you can put some permissions on it and be able to say to somebody, you can watch this video, or only I can watch this video. And so that freemium model is fantastic. But people will swipe their credit card. We have hundreds of thousands of school districts, teachers that wanna allow students to be able to upload videos, private practices, doctor's offices that wanna be able to distribute a video that they've created and they don't wanna put it on YouTube for their patients. They wanna be able to send it just to that patient. And so that part of our business, that self-service, is where we have these millions of subscribers that are using us. We also have the Vimeo Enterprise product where you can cleanly come up and now link into the customers single sign on architecture. So the credentials you use to sign into your company are the same credentials that you use inside of Vimeo. And we can separate videos. So the investment bank can't watch the wealth management videos, and the wealth management team can't watch the money management videos. So we're able to provide those kind of enterprise features. And then we also have a streaming platform, what we call the OTT business. Now that business, when you go to YouTube today, as a creator, and creators right now, that entire market and streamers are growing at over 20%. Influencers are everywhere. But when you get up to about 50 to 100,000 subscribers on YouTube, it stops making sense for you to give 45 cents of every dollar to a YouTube. And so we have a lot of organizations. Martha Stewart, we have Nappy Boys, which is T-Pain, Zeus Networks, we have the NBA, my own Philadelphia Eagles. Whole variety of organizations will use us to be able to do streaming. And they pay us a subscription fee. And then they're able to collect the revenues that they want to from their customers. They can put ad bumpers we just announced in front and then behind their customers. We're not collecting their customers' data. We're not getting in the middle of the environment of their streaming experience. And so that streaming part of our business is also a really exciting area.

So maybe, like on the streaming piece, I mean, you touched on all these different customers you have the rise of influencers and TikTok. Does the changing of form factors or the proliferation of form factors impact you guys at all? And so how can we think about the changing of form factors or just the progression of video technology?

So this is, I was talking about this earlier, I get a little excited about it. Think of us as like, we manage, we stream these bits and we get paid based on how many bits that we store for you and how many we stream for you. So if you have an e-commerce site, you have a million people hitting, we charge you for that. And if you use AI, we charge you for the translation of those bits as well. Well, right now we're at 4K television. 8K televisions are coming out right now. 16K television, the first one has just been released and 32K is coming. And so that 4K, moving from 4K up to just 8K moves from 60 megabits per second, I'm sorry, 50 megabits per second up to 300 megabits per second. So we gotta move five times the number of bits just for the first jump from 4K to 8K television. On top of that, we just commissioned a beautiful format type of beautiful film for Apple Vision Pro. We announced we're the very first streaming platform to stream on Apple Vision Pro. Tim Cook mentioned us in his announcement. That requires 120 frames per second. Now think about what's necessary to be able to manage all those frames at the kind of end of the actual frame size is even bigger for you. So we've got to move even more bits as these new spatial formats come out. One of the most important things that's happening right now during Black Friday, Cyber Monday is the explosion of shoppable video and what's happening with influencers. If you look at what's going on on TikTok right now and the sheer amount of shopping that's going on this season around shoppable videos, we have interactive video formats. And so one of the areas that we're looking at is making video more shoppable. And so each of these things is going to require the movement of more bits, more of what we call our computing primitives that we manage for companies, for individuals and for enterprises. And then the opportunity to be able to have people pay for AI on top of those bits also

expands. So a lot of exciting, you know, form factors, technology and ways for them to monetize. But on the flip side of it, when I think about that paying customer, there's potentially a lot of expenses on the backend for them. How can we think about the relationship between just adopting the best of three technologies or the newest, best whatever, versus optimizing the cost for the right use cases? You probably don't need to have 8K for, you know, what your doctor's saying to you after a visit, but you probably do for, you know, your shopping for a new car or something like that. So how has Vimeo played to that part of the dynamic? You know, I think this is

one of the biggest reasons that enterprises use us. And we have some of the biggest companies in the world. You know, in our most recent earnings release, we talked about the fact that we have eight out of the top end big box vendors. We have eight out of the top eight grocery stores, huge number of pharmaceutical companies using us. Because video isn't just a single file type, it's not just that MOV file that's sitting on your machine. You've got to know what's the format type that's in the viewer. So whether or not you're looking at a phone or whether or not you're looking at a large screen television. And so we manage that today and stream, again, 100 billion views around the world every single year in 190 countries where we're cashing into these large CDNs if we've got to go inside of your firewall. We don't look like a DDoS attack. We actually hook cleanly into your firewall so that we can stream those videos and if we're supporting a learning system. And so whether or not it's a, you know, small like very low fidelity video or very high quality video, we can serve that in or out of the firewall. We can serve it to just the right person at the right time. And that's what differentiates us. It's always differentiated us from YouTube. And it's why filmmakers still rely on us today is because we also do really deep transcoding. So the blacks look black, the reds look red. So if you have a marketing video that you need to have super high fidelity, we maintain it. If you want to just turn it into a TikTok, we can turn it into that TikTok and serve that. If you want to put it on a large screen television, we can serve the third, you know, the 16K version of it. And so this is one of the things that makes video hard. And it's one of the reasons why enterprises that have unlimited resources aren't building these things themselves. They're not just cobbling these things together. They rely on a platform like video because we bring that all together, we manage it for you, and we even help you manage the financial elements of that.

Got it. So I'll take this opportunity to take a step back and look at things from more top-down perspective. We've been in a challenging macro for the better part of two plus years now. What are you seeing in the macro as it pertains to the Vimeo business? What are some of the nuances? You know, we have all these exciting technology trends happening, but you know, at the end of the day, there's probably still some more challenged budgetary environments, particularly in the enterprise or at the consumer level. So maybe you can help us understand what you guys are seeing today.

Yeah, I think that increasingly, you know, so first of all, the world has gotten comfortable with video and we're seeing, we're experimenting with this and we're seeing our own customers experiment with this. The use of AI to be able to more successfully service customers. The use of artificial intelligence to make your sales organization more effective. You know, the use of video to make your meetings more better and the ability to be able to kind of index your meetings and say, when did this happen, or summarize those meetings. And so we're seeing, you know, more and more pressure to do things more efficiently. I think AI has kind of inspired everyone that they can do more, you know, without having to, you know, add a lot. And so that element for us, I would tell you, is very good

because

we think moving pictures is probably the best thing to integrate into AI. You don't want just walls of word coming out of your artificial intelligence. If you get moving pictures coming out, I think all of us would agree it's a better experience. You know, I would tell you in the enterprise as well, you know, increasingly, I think the compliance landscape is becoming increasingly concerning. You know, am I putting my video into something where the AI is going to learn from it? If I'm a hedge fund, you know, we work with a lot of hedge funds and they don't want to put their videos into the general purpose model. They want to make sure it's nice and secure. So security and compliance and governance is becoming increasingly important in that space. And then I'll just say it again, proliferation of creators in this world is just extraordinary. You know, creators are growing at over 20%. Streamers are growing at over 20%. E-learning is growing at about 17%. Digital marketing is growing at over 40%. All of those things are great, great trends for us.

So sounds like, and I would agree, a lot of favorable trends for the business. Growth has, on the flip side, come down, but you are looking, one of your stated strategic imperatives is to reaccelerate growth. So maybe help us square the current state of growth with the macro and how you plan to reaccelerate that growth trajectory moving forward. So I've been here

eight months. Happy to say that the enterprise business is growing. Happy to say that the OTT business has done some stabilization. You know, in my most recent earnings call, one of the first things I talked about is that we haven't increased prices in 10 years, and we actually just implemented one of our first pricing increases. One of the core things that we did was that we had built some walls and some cliffs for our customers that were not great experiences. And so if you were paying something like, what's called a couple hundred dollars, all of a sudden you were using a lot of bandwidth and we'd go ask you for like $4,000. And we changed that so that you can buy just what you need when you need to. That, believe it or not, the price increase, one of the first times in my life where we've gotten positive feedback from customers because we increased things like storage limits. We took away some of the restrictions that we were having, and we gave them a really clean path to buy just what they needed from us. And so in a self-service business, right now I think that we've got some opportunities around pricing. In the enterprise business, we've got some very strong market, say tailwinds behind us. In the OTT business, I think we've proven that we can stabilize that. And we're bringing a lot of innovation where we think we're gonna be able also drive just sheer product-led growth and delight from our customers to grow that subscriber base.

So you touch on the three businesses, right? You have the self-serve, you have the OTT, and you have enterprise. And when I think about potential competitors, competitors tend to serve either one of those markets or one asset, what do you guys do? And it appears that Vimeo has the ability to do consolidation. So maybe help talk us through what the competitive landscape looks like in each of those and how you can help drive consolidation by having this broadly defined product set.

Yeah, I think

a

great example, video in the past, it's been a little bit like Splunk, if most of you are familiar with the Splunk story. Where in the past, with Splunk, you had log files for your database, for your firewall, for your SAP system. And when something went wrong, you had to go to your SAP system, go to your database, and kind of stitch all these things together. Splunk was the very first tool that said, just give me all your log files in one place and you can just start asking questions. That's a little bit about what the strategy is here at Vimeo, which is, in the past, you had your kind of marketing videos, you had your internal communications videos, you might have some learning videos sitting over here inside of your LMS. Now you've got some e-commerce videos sitting over here. And so increasingly, what we're finding with our enterprise business is that we've displaced two, three, four tools in some cases. In some cases, they pull out the guts of like a learning system and will put us in underneath that learning system. They'll maintain their own, but they'll put us in as a Vimeo because we're innovating fast around format types and AI and translations, and they can do on their own. So recently, we just had a customer, it was a county government that called us up and said, they've got a citizen engagement platform, they have a platform to stream their town meetings, and then they have a bunch of projects that they post on YouTube, and this stuff is like all over the place. And they said, can we just, they replaced three different tools, YouTube being one of them, to actually house all the video. And so now they're not serving advertisements before their township meetings, things they don't know, and they're not serving ads over here before someone's trying to look at a really critical project. It's just video unadulterated by ads or collecting data or otherwise. And so that was the case where they've consolidated video from three different tools into us.

Got it. And so we've talked a lot about the various trends. We've talked a lot about these growth drivers in the business. It was touching a little bit on the earnings call, but what are your early thoughts for Nectar, fiscal 25, and what are the key elements as you complete this planning cycle you're in right now? So

we're very focused on growth. In the past two years, we've swung free cashflow by $100 million. So this year, if you look at our most recent earnings release, we're a little bit over like 12 to 13 million of EBIT in the most recent quarter. And so that would put us on track for let's call it north of 50 million this year. And two years ago, it was a very opposite environment. So that cash, so we're coming into next year with a pretty strong EBITDA profile, 300 million plus on the balance sheet with no debt. Now we see the entire board, myself, and the entire leadership team sees this opportunity very clearly. You got a once in a lifetime opportunity to go capture enterprise video at scale when something like this is moving this quickly. And so we do plan to invest in R&D. That's the area that we're highly focused on. We cut a huge portion, over 50% of our marketing spend, and it really didn't impact the business. When you take a look at the overall growth rates, they stayed pretty much the same. And so we will be investing to grow. We have said we intend to grow profitably. So we're not, we don't wanna go back to that, to where we were before. I like to say I was an East Coast venture capitalist for a while. So I like to make money as well as I was. Yeah, so grow revenues. And so that's an important element. Now we are gonna take that EBITDA down a little bit, but we've signaled in our most recent earnings call, and I think it was accepted, or it was received pretty well, that we intend to show some growth next year. And we think that the combination of some of the pricing, the enterprise business and the stabilization in OTT gives us that

opportunity to grow. So I wanna double click on margins there for a second. You did slash S&M by half, according to my notes, and you got 25 points of EBITDA expansion within two years, before your time a little bit, but still. But you have stated long-term margin goals of 20% plus. How do we get from where we are today to there without, you can't just slash S&M every year by half, and I guess you could, but probably not the most advisable strategy. So maybe help us bridge from where we are today to that long-term margin goal. You know, I

would tell you that we've got an appropriate side sales organization. You know, the beauty of our model is that the more costs that we have, the more that means that a user is using us. They're using more bandwidth, they're using more storage, they're using more artificial intelligence. And so the gross margins in our business, you know, are, you know, show that pretty cleanly. And we don't have to go and do the science that a Google or an Amazon or Microsoft or an OpenAI has to do. Instead, we leverage those products on a per drink basis, if you will. So we do think that that's pretty efficient. You know, 50% of our business right now is international. And so I think that we can be doing a better job internationally. And I think that that doesn't take a lot of money. We're already proving to ourself that we can be embedded in partners' platforms and actually get to the market even more efficiently than we are today. A couple of the biggest partnerships we have are really turning into, you know, multi-million dollar customers right now. And so we think there's, you know, efficient ways to expand access to the market. We think that we are gonna be able to charge for, you know, the RAI and our primitives as people use them. And then I think that as well, we can maintain

pretty healthy gross margin. So when you talk about charging for AI, I think that's been a topic more broadly across software in terms of not just how they monetize but the margin profile as well, given the compute and inference and cost. I guess, have you guys thought about a monetization strategy around AI, whether it be direct, indirect, and then how does AI potentially impact your gross margin profile there?

Sure, so one of the most important things that we did this year was launch our AI credit system along with our translation system. And this was back in roughly about, I think, the July or August time period. And what it does is that when I'm gonna translate a video into a language, it says, it's gonna take five credits for you to translate this video. Or six credits. Now, when I have a human being translating that video, as I mentioned to you, it costs about $10,000 to translate it with humans. When you go and look at Microsoft's pricing, I think, for translation, I don't know as of today, but it was like a dollar per minute for translations. We sit on top of eight billion minutes of video as a library, and we get hundreds of millions of new minutes of video per year. We're one of the largest AI, I'm sorry, video repositories in the world. So our buying power, when we go and negotiate with one of these AI companies, we have pretty good buying power. And the same way that we've got good buying power for bandwidth and storage. And so we're able to get that dollar per minute lower than somebody could get it on their own. And as a result then, we go ahead and charge for that in the form of credits. Now, we have a very deep roadmap for things like indexing your videos and ask a video a question, remove the ahs and ahms in your video, make sure your eyes are looking forward the right way, doing things like watermarking AI or videos. So we have this long roadmap that we're building, and every time you do one of those, you can burn AI credit. Now, for an enterprise, imagine having to stitch together all those AI models and figure out out of the millions or thousands of videos that are inside your environment, who's using which AI model, how much are they spending, are they getting the lowest cost, are they getting it at a lower cost than Vimeo can get at that, probably not. And so that AI credit model is really important both for a single filmmaker that wants to like on a low budget be able to move his or her movie into three languages, and it's equally important for an enterprise that needs to manage tens of thousands of videos.

So, a lot of incredibly interesting feature sets, specifically with an AI I just mentioned. On that same note, you recently have hired a new CTO, CPO. How can we think about their focuses, is it AI in terms of the product development and product roadmap, is it just the enterprise, is it all the above, how can I think about the priorities from a new product leadership?

So, since I've gotten here, I've hired a new CTO, a new chief marketing officer, new chief people officer, a new chief information security officer, and I've signaled that we're gonna have a couple additions to the leadership team. That CTO comes from a very deep security background where he's managed security for very small companies up to very large companies. And one of the things that we think is like really exciting is being able to provide what we call a massive multi-tenancy environment. So, if I'm a pharmaceutical company, I don't want another pharmaceutical company seeing my videos or using AI on it, and I don't want an answer to come from coffee shops videos. And so, Bob and our team has worked on this massive multi-tenancy architecture that we think is very differentiating versus anything that's out there. When you have to do that at scale for millions of people, I had Ben Proudfoot, who is an Oscar-winning documentary, say to me, don't replace me, give me my AI. I have a certain storyline. I shoot camera angles a certain way. I have a certain film technique. I have certain language that I like to use. And so, give me Ben Proudfoot's AI that I can actually accelerate other documentaries. Well, we're able to do that for Ben, and we're also able to do it for Nissan Motors, as an example, or we're able to do it for Martha Stewart. And so, Bob is really focusing on building out that architecture, building out a lot of the integrations into things like single sign-on integrations into platforms like Zoom and Meats and Teams. And so, he's really focused on building out kind of this next-generation architecture for video.

Got it, now that's super fascinating. On the next generation for a lot of these features you just mentioned, how difficult are those to develop? I mean, is that something that can be developed in a six-month timeframe, is it two years out? I mean, I know you mentioned a lot of things, so probably not all at once, but just curious how you're thinking about the timeline of this R&D roadmap you just described. So, Translations

is out in our enterprise business. Ask.ai is already out for our enterprise business. We're gonna be bringing that into the self-service business. And so, you'll see these things, a lot of our roadmap's starting to roll, it's already rolled out for some of our enterprise customers. And we did that, by the way, by, well, we're still increasing EVITA, so we're doing a pretty good job here of not doing the basic, lots of the basic science. And then we're also, you'll see even more of these things being rolling out, and I would say in Q1 and Q2 of next year. And the beauty of right now what's happening is that we're able to go into these customers and demonstrate these features for them. And it's one of the things that's really helping our sales pipeline. You know, in my call I talked about how strong our pipeline is. When people see this, they really get excited because

we're

able to do it for

them less expensively than they could do it on their own. How big do you think the AI business could be for Vimeo? Could this be something as big as the enterprise business in terms of how fast and big it scales, or how are you thinking about the AI piece of Vimeo? Because there's a lot of potential here, it seems like. I'm

gonna tamp down expectations, say I have

no

idea.

I'm

just gonna say that, you know, I've gotten the team, organization, very focused on the number of minutes of video that we hold and that we serve. And we think that, you know, when you look at how AI is charged for today, it's charged by the minute. And so we very much wanna be a low-cost provider of that by leveraging other people's AI, but make it easy for you to spend on us. And so, you know, as I mentioned, we have eight billion minutes of video. I encourage you to go and do the math and look at some of the AI companies, what they charge per minute for some of their features. We're a buyer of those features from some of the big video companies, AI companies. And, you know, our whole goal is to get, you know, hundreds of millions, billions of minutes per year added to that and be able to help to monetize it. But I wanna prove to the market that we can do that by showing you, you know, some of the revenue associated with those things in future quarters. And when I do, then, you know, then we can talk about

projections. That all makes plenty of sense. Well, Phil, we're at the top of the hour here. Out of time, this has been incredibly insightful. Really appreciate you sharing your thoughts and everything around Vimeo. It's been a pleasure to host you. Really appreciate it. Thank you.