Fiverr International Ltd.

Good morning, everyone. Thank you for joining us on Fiverr's earnings conference call for the third quarter that ended September 30th, 2023. Joining me on the call today are Mihal Kaufman, founder and CEO, and OfferCats president and CFO. Before we start, I would like to remind you that during this call, we may make forward-looking statements and that these statements are based on our current expectations and assumptions as of today, and Fiverr assumes no obligation to update or revise them. A discussion of some of the important risk factors that could cause actual results to differ materially from any forward-looking statements can be found under the risk factors section in Fiverr's most recent Form 20F and other filings with the SEC. During this call, we'll be referring to some key performance metrics and non-GAAP financial measures, including adjusted EBITDA and adjusted EBITDA margin. Further explanation and a reconciliation of each of the non-GAAP financial measures to the most directly comparable GAAP measures is provided in the earnings release we issued today in our shareholder letter, each of which is available on our website at investors.fiverr.com. And now,

I will turn the call over to Miha. Thank you, Brian. Good morning, everyone, and thank you for joining us. Q3 was another strong quarter as we continue to accelerate our revenue growth and drive EBITDA margin expansion. Both revenue and adjusted EBITDA came at the top end of our guidance range. A number of factors drove the strong performance. The cohorts in our core marketplace continue to stabilize from the COVID growth spikes and our push-up market has allowed us to grow spend per buyer at a strong pace. Finally, healthy growth in our value-added services contributed to our take rate of over 31%. All of this was extremely well executed with continued expense discipline, which is reflected in the strong delivery of our adjusted EBITDA margin. These results underscore the power of our business model and the progress we are making to solidify our position as the global leader of freelancing marketplaces. This, together with the strength and resilience of the Fiverr team, allows us to focus, adapt and thrive amid external changes. As you all know, Israel went through a horrific attack a month ago. Our first priority has been to help our employees their families in the fiber community and support those the deadly attacks impacted. If some of our employees are being called up, we are ensuring their families will get what they need while they are on the front lines. As a company, we are quickly adapting so that we continue to operate and execute at the highest level of focus and consistency thanks to our hybrid operation that's already in place. Since we laid out our strategy focus this year to strengthen our core market base and accelerate our pace to push up market, we have been working on knocking down barriers that prevent buyers from shopping more often and fulfilling more complex projects. We know that Fiverr's unique transaction model and global access to talent provide great convenience and access to our customers that are unmatched anywhere else. But there are also pinpoints, such as the difficulty of finding the best talent among so many choices, the uneasiness when a project is only partially scoped, or the headache when a project requires coordination between multiple freelancers. This is why we created products such as Fiverr Neo Fiverr Enterprise, and the project planning service in Fiverr Pro to address those issues. The vision for Fiverr Neo is quite wild. We imagine Neo will serve as a personalized recruiting expert that can help our customers more accurately scope their projects and get matched with freelance talent, just like a human recruiter, only with more data and more brainpower. What we have done so far is leveraging the existing LLM engines to allow customers to express their project needs in natural language, which Neo will synthesize and define the scope before matching the client with a short list of choices pulled from the entire Fiverr freelance database. It's a substantial step forward from the existing experience and streamlines the time the customer needs to make an informed decision. To improve the experience further, we continue incorporating cutting edge technology into our production to advance the algorithm and provide a much faster processing speed. We already see thousands of customers utilizing the service and early results show a positive impact on match quality and delivery. On the Fiverr business solution side, we are targeting higher-end customers, expanding our wallet share and expanding our product suite to accommodate more use cases that are sometimes difficult to execute through a typical market-based order. When a customer comes through the funnel without a well-defined product scope, sometimes they need a domain expert to help carry out a specific function of the business say a social media market expert. Sometimes they have a vaguely scoped project with an evolving roadmap, say building a complex mobile app. In both cases, they are looking for freelance to engage for an extended period of time. This is where Fiverr Enterprise comes in. Through Fiverr Enterprise, clients can manage an ongoing engagement with a pool of freelance talent continuously update tasks and project milestones, and ongoing budget management and payment tools. This allows us to address the freelancing need of larger businesses that otherwise might be stuck with the complexity of creating detailed scope for open-ended goals at the beginning of the project. Finally, in Fiverr Pro, we are seeing great traction for the newly introduced project partner service. Since its launch last year, we've seen many business customers utilizing the service to fulfill significantly larger projects. We've further expanded the offering to include separate project planning and project management services to cater to a wider range of businesses. The project planning offering is a popular option among customers who need help with scoping and staffing. And we have found that most customers who use the project planning capabilities end up utilizing the full project management capabilities as well. As you can see, there have been a lot of exciting developments at Fiverr this year. Leveraging the flywheel of our market base built over the years, we are taking our business to the next level with new products and services that cater to a wider range of customers and their needs. There is tremendous potential for us to expand our customer base and grow their wallet share with us, and we should be able to build on these opportunities in the years ahead. With that, I'll turn the call now to Ofer, who will walk you through our financial highlights.

Thank you, Micha, and good morning, everyone. We delivered another quarter of strong results, driven by the resilience of our cohort, our recent upmarket effort, as well as growth in our value-added seller services. Revenue was 92.5 million, representing a year-over-year growth of 12.1%. Adjusted EBITDA was 16.5 million, or 17.9% in adjusted EBITDA margin. Both were at the top end of our guidance range. For the second quarter in a row, we have also achieved gap profitability thanks to our ongoing effort in improving our operational efficiency. All of this demonstrated the impact of the strategy we set at the beginning of the year, the strong execution of our team, as well as the strength of our business model. Our annual active buyer were at 4.2 million, as spent-per-buyer improved to $271, up 4% year-over-year, and a $6 increase from Q2. Our 5F business solution continues to make meaningful progress as we urge more partners to certify and onboard customers to our premium marketplace, 5F Pro. This effort helped to drive the accelerated pace of our spent-per-buyer increase as our buyer base continues to evolve towards higher quality, higher budget demographies. We continue to maintain strong efficiency and unit economics in our performance marketing. This quarter, our TRI for performance marketing remains very stable at slightly over three months. On a longer time basis, our lifetime value to CAC over three years remains healthy at over 3x and for five years, exceeds 4x. We expect to continue to invest as efficiently as possible as we push forward on our upmarket efforts and focus our investment on higher value buyers. Our Q3 take rate improved to 31.3%, representing a year-over-year expansion of 130 basis points as we increased seller monetization of promoted gigs and seller plus. We continue to expand and optimize our ad placement for promoted gigs while SellerPlus benefited from the introduction of our two-tier pricing model that we launched a year ago. We are excited to report that SellerPlus subscribers have now reached 25,000, more than double from the end of last year. Our improving take rate signifies the value that we are able to provide for our freelancers, and we continue to develop additional tools to help them grow their businesses. Now turning to guidance. In the immediate weeks after the onset of the war, we experienced some volatility in our marketplace, primarily from buyers and sellers in countries in the region. This volatility has already created a headwind to revenue this quarter. While some of this volatility has subsided, the risk of it increasing again remains, and we have incorporated the risk into our outlook for the remainder of the year. As such, for the full year of 2023, we are maintaining our revenue guidance in the range of 358 to 365 million, representing a year-over-year growth of 6 to 8 percent. We are raising the adjusted EBITDA range to be 58 to 60 million, representing an adjusted EBITDA margin of 16.3 percent at the midpoint. This implies fourth quarter revenue guidance of 88.1 to 95.1 million, representing a year-over-year growth of 6% to 14%, reflecting the increased uncertainty for the remainder of the year. We expect adjusted EBITDA guidance of $14.9 to $16.9 million, representing an adjusted EBITDA margin of 17% at the midpoint for the fourth quarter. That said, just as how we have navigated our business through a series of macro conditions in the past few years We are confident in our ability to continue executing with the strongest discipline at focus and a long-term thesis of our business and strong market-leading position remain intact. With that, we now turn the call over to the operator for questions.

As a reminder to ask a question, please press star 11 on your telephone and wait for your name to be announced. To withdraw your question, please press star 11 again. Please stand by while we compile the Q&A roster. Our first question comes from the line of Ron Josie from Citi.

Great. Thanks for taking the question. And I'd be remiss if the first thing out of my mouth wasn't to say we're thinking about you all and the team over there, given all of the events. And so would love to hear more just how things are going from an operations perspective. Ofer, you talked about the revenue headwind that subsided since the start. Any insights on there would be really helpful. And again, we can't not think about you all. And then from a Fiverr NEO perspective, despite all this, NEO rollouts just continue to gain speed. And so, Michal, if you can just talk to us a little bit more about what you're seeing there about some of the early wins and the roadmap would be great. Thank you.

Good morning, Ron. Thank you for the first note and the questions. So, first of all, I think what we called out is what we've seen since the events of October 7th is that we have seen some volatility in the region. As an example, sellers in Israel have seen weakness in their business for the first two weeks since October 7th, and at this point, mostly data subsided. So, we see that element is being pretty stabilized right now, but with some factor of uncertainty depending on how things will evolve in this region. In terms of Fiverr Neo, we're very pleased with the rollout, obviously very, very young product, but we're seeing over 100,000 users that are trying the product. And what we're seeing from their experience is that we're able to provide more accurate matches, which is basically what we wanted to do, and have a higher engagement and satisfaction levels, which we're very happy with, and the beginning of a repeat usage of the product. So there's a lot of learning as we build this product, and what we're doing is really a hybrid of technologies. Some of them are being developed by us. Some are off the shelf. Most of the leading leading companies that are developing LLM, which have partnered with us. And we're putting this to the maximum. I think a lot of these systems are not yet optimized for large scale and high performance, but we find our own ways of developing a lot of this technology to provide a very smooth experience to our customers. And again, the feedback that we're getting from them is extremely positive.

Thank you, Micha.

Thank you. One moment for our next question. Our next question comes from the line of Doug Anmuth from JP Morgan.

Thanks for taking questions. And of course, just want to echo Ron's thoughts as well, thinking about all of you at Fiverr. Two questions. Just can you talk more about Fiverr Pro and just how customers are using the platform differently? And if you could, if there's a way to perhaps quantify some of the increased spending that you're seeing there compared to in the marketplace. And then secondly, you continue to make really good progress on take rate and Any way that you can help us understand is how you think about the headroom and opportunity around promoted gigs and Seller Plus, especially as you continue to expand kind of availability there. Thank you.

Thank you, Doug, and good morning. So on Fiverr Pro, maybe I'll start and, you know, Ofer can chime in. Essentially, the way we've built Fiverr Pro is really to tackle a number of different needs. One is the need for better talent. So people that have more experience and have a better portfolio of existing work and the notable clients that comes with it. So our clients that are using this product are by definition quality centric. So that is one of the reasons why they're using it. However, on top of that, we're offering a number of added value features that comes with being a pro customer that they love as well. And I think we've spoke about this before, but we keep extending these features. So the ability to work as a team on the platform, the ability to do budget management, to have more sophisticated types of projects getting done. If you do require someone to actually manage the project for you, there's an option to have a project manager to run those projects. So by definition, those customers that are using this product have larger needs They need more experienced freelancers or agencies, and therefore they're also spending more and retaining better. As for the second question on take rate, So basically, it's the one question I think we continue to get since we took the company public. And essentially what we said is we do see headroom for growth. In every product that we've launched, and Ofer mentioned that in the opening statement, is growing. Promoted listings is one of them. Seller plus is another. And this has been really adding to the take rate we've had four years ago and how it has been steadily growing since then, which is exactly what we said is going to happen. So the message remains. Essentially, we believe that there is more opportunity to continue investing and expanding these offerings. And we see that the more we do it, the better gains we get from these products. Thank you, Micha. Thank you.

Thank you. One moment for our next question. Our next question comes from the line. of Jason Helstein from Oppenheimer.

Thanks for the question. And again, sending support and thinking of everyone over there. Can you help us understand? I mean, you've got like, I guess, kind of three factors, right? One is just the, you know, the COVID, you know, the COVID roll off. The second is just some of the general weakness we're seeing in the economy with SMBs. And then the third is all the progress you're making kind of moving up market. I mean, is there a way, I mean, at some point we'd love if you broke out, you know, the, the, the kind of non SMB business, but just maybe help us understand kind of where we are in that. And do you think you've seen the bottom on the SMB side? Thank you.

Thank you, Jason. And good morning. I think you're correct to list those different factors. At this point, we haven't seen any major change that we can call out. I mean, COVID effect is pretty much locked, which also had us enter a new era of remote work, which is now you know, being challenged as people are being called back to the office. What we're seeing with the general economy, the weakness around SMBs as a result of macro has been pretty steady, meaning it is not becoming worse, but it is not becoming better. And this is why many quarters ago we said that as a strategy, we are investing in going up market and acquiring or entertaining customers who the macro environment impacts less. And if you follow the numbers and you follow the growth of these cohorts, you will see that we're making great steps in increasing their portion. You know, the cores that we acquire today are very different than the cohorts we've acquired a year ago. To the point where they spend about 20% more in their first purchase when they join us, which is massive. And then their lifetime behavior is much, much different. Some of it is thanks to what we're doing with Fiverr Pro, which has multiple spend per buyer than our average. but it's also how we find and engage with these customers. So this has allowed us to really make a step forward, and we're seeing that in the spend per buyer as well. But we haven't seen any material change in those trends so far, and we're just reiterating The fact that we believe that when the market will start recovering, we will have tremendous opportunities for growth. It is yet to come.

Thank you, Colin.

Thank you. One moment for our next question. Our next question comes from the line of Eric Sheridan from Goldman Sachs.

Thanks so much for taking the question. Maybe one following on Jason's. When you think about the demand environment and turning it back to incremental margins and investments to stimulate growth, you made a lot of progress this year on margins on a very consistent basis. How do you think about the balance of investing and growth as you see signals of a stable to rising environment versus elements of continuing to produce very solid incrementals in the business on the margin side going forward. Maybe thinking about in terms of key investments that need to be made and what signals you're looking for to possibly turn on some of the demand investments on the cost side. Thank you.

Thank you, Arias. Good morning. So, you know, essentially, again, I want to reiterate our approach as a business. We are a growth company, and we double down on growth when growth is a good option. And essentially, the way we manage the businesses, we're pushing for the rule of 40. It's that simple. So we're optimizing growth and profitability profile and putting a sustainable path to maximizing long-term shareholder value Right now, it seems that it's more on the cohorts of mid-sized businesses and up and less on the micro businesses and the very small businesses, which is why we've been doubling down there. And bear in mind as well that even though we can theoretically invest more in smaller businesses right now because of the dynamics of macro, the efficiency of our marketing spend would get hurt, which I don't think is going to serve anyone, not us and not the shareholders for the long term, which is why we're resisting the temptation of actually doing that. Right now, the sentiment is such where to keep the extremely efficient machine that we have. And again, you can see that in the very short ROI, and you can see that in the growing LTV to cop ratios over time that this strategy actually works.

Yeah. And I think that just to augment on what Mika said, I think that we have proven to improve margin in a sunny day and a rainy day. And I think the plan is to continue this path. There was a long-term EBITDA margin ahead of us, and we're getting there.

Thank you. One moment for our next question. Our next question comes from the line of Matt Farrell from Piper Sandler.

Thanks, guys, for letting me ask a question. Two, if I may. The first one, the Q4 guidance range is much wider than you normally provide for a given quarter. You kind of hinted at the uncertainty you're seeing. Could you walk us through the assumptions or just how to think about you getting to the high end of the range and what would happen to get to the low end of the range? And my second question is, I know you're not going to provide any quantitative commentary on next year, but would love to hear some of the strategic priorities for 2024 across various parts of the business. Thanks.

So, thank you, Matt, on the question. I think on the first part, on the guidance, you know, we noted the volatility that we've been seeing the first few weeks of this quarter, and we guide based on the assumption that the risk of volatility will retain into the next few weeks. So based on that, it might be that volatility will create headwinds or the other way, and based on the uncertainty, We kind of increased the range to make sure that investors get the full picture of what we are seeing. And the operating plan has been adjusted accordingly. In terms of the, you know, the 2024 has even, you know, wider uncertainty because, you know, still a way to go. And we obviously, you know, we speak about numbers early next year. And I'll let Micha go through the strategic profile of 2024. Yeah. So on priorities for 2024,

I would say that a lot of what we've been doing throughout the years have been paying off well. And there's a few specific things when it comes to next year. So continuing on my previous comments, given the macro environment, going up market is a strategic move and target for us. And at least until macro changes, this is a center of focus. The other one that I can call out is AI integration, both internally as a team and how it makes us move faster, more efficient, but also in our product to make the lives of our customers better and get what they're trying to do faster. On the same note, pretty much, catalog expansion is really important as we're seeing so many different, so many new products areas of professionalism appear as the landscape changes. And so continuing to expand the catalog and ensure that we add the necessary categories and skills to the catalog is important. International expansion is another one. I think 2023 has been very successful in that front and we've been I think the playbook or the playbooks that we've been developing have been paying off and we're seeing regions where we're doubling down, growing much faster than the average growth of the market base. Team excellence is an ongoing investment. And lastly, I would just generally call consistently looking for growth opportunities, both organically and inorganically.

Thank you. One moment for our next question. Our next question comes in the line of Kunal Madhukar from UBS. Kunal Madhukar from UBS. Kunal Madhukar from UBS. Kunal Madhukar from UBS.

Kunal Madhukar from UBS. Kunal Madhukar from UBS. Kunal Madhukar from UBS. Kunal Madhukar from UBS. Kunal Madhukar from UBS. Kunal Madhukar from UBS. Kunal Madhukar from UBS. Kunal Madhukar from UBS. Kunal Madhukar from UBS. Kunal Madhukar from UBS. Kunal Madhukar from UBS. Kunal Madhukar from UBS. Kunal Madhukar from UBS. Kunal Madhukar from UBS. Kunal Madhukar from UBS. Kunal Madhukar from UBS. Kunal Madhukar How do you think that impacts the take rate insofar as it relates to the promoted gigs or seller plus? And then in terms of volatility on the revenue side, can you help us understand you are a global company and so is demand across the globe kind of volatile or is it in specific areas? And similarly on the seller side, is the supply affected across the globe or is it just in specific areas? Thank you.

Thank you. Good morning.

So if I understand the question about take rates, as I said earlier, it is sustainable as we've been proving quarter after quarter with no exceptions. And there is there is still upside. You called out promoted gigs and Seller Plus. Both are growing programs, and they keep growing quarter after quarter. So I don't think, I'm not sure what's the connection to Neo, but essentially we don't see them shrinking or being impacted by the new technologies. And obviously there's ways of integrating promoted gigs and solutions like that within our new products as well. In terms of the second question about volatility on revenue, you know, we're a global company and that is correct. And obviously some regions as a result of war activities, and we've seen the same with Ukraine before, and we're seeing it now in the Middle East, become volatile. Sometimes it's very short periods of time, and sometimes it's slightly longer. This is why we called it out. And we said that most of this has been subsided. However, since Wars, by definition, are dynamic events. It is really hard to forecast how this would evolve, and this is why we're putting a bit of cautious into anything.

Thank you. Thank you. One moment for our next question. Our next question comes from the line of Andrew Boone from JMP Securities.

Good morning, guys. I'd also just like to echo my thoughts over thinking about you. On take rates, understood that that's a trailing 12-month metric, and it's stepped up almost a point in the last two quarters. So is there anything that you guys can disclose in terms of the take rate as it's at 3223? meaning did we have a significant step up and we're plateauing from here, but we'll see it in the figures as that trailing 12 months catches up to 3Q, or how do we think about just the increase over the last couple of quarters and then how do we play that going forward?

So, Andrew, this is also, I think we mentioned that in the prepared remarks. The day trip is driven by promoted gigs and Seller Plus. Those are the two different programs that we are expanding over a few quarters now. Micha mentioned earlier that Seller Plus has more than 25,000 subscribers, which is more than double the number of subscribers we had in the last year. So I think on both of these programs, I think a very good retention. On the Seller Plus, we now run two different deals, two different offerings, different pricing. And I think that the plan on both program of Seller Plus and Promoted Gigs is to further expand because there is a room. You know, just open the Promoted Gigs into mobile. So there is more asset for us to monetize again. And there's more value to assist seller on the marketplace to better monetize their skills and time which is why the adoption rate and the retention is steady and growing, and we plan to expand it over the next few quarters.

Thanks for that. And then I wanted to ask about brand marketing specifically. You guys just launched a new U.S. campaign recently, How do we think about brand marketing as a component of sales marketing and how that has trended just given the more difficult macro environment? Thanks so much.

Thank you. So we, for many reasons, mostly competitive. We're not providing an accurate breakdown between brand and performance marketing. However, as evidence in what we're doing around the world, not just in the U.S., This is an area where we're definitely continuing to invest. It's a long-term investment and one that goes hand-in-hand with performance. So to us, it's really the funnel that supports the brand and the brand supports the performance. And this is why, depending on new categories that we enter, new areas of interest for us, trends in the market, that defines how we break down between brand and performance. I hope this gives a little bit of color. That was great. Thank you.

Thank you. One moment for our next question. Our next question comes from the line of Marvin Fong from BTIG.

Great. Good morning. Thanks for taking my questions, and certainly hope everyone on the Fiverr team as well and stays that way. Question, I guess, just to pile on here on take rate, you know, big jump this quarter, and like Andrew observed, it is a trailing 12 months. But, you know, should we – how much of this – Or do you think is perhaps, you know, in tougher economic times, you know, freelancers are sort of doubling down on investing in their business. Do we see any signals of that? So for instance, you know, with bidding prices up for promoted gigs, things of that nature, or any, any thought there on perhaps kind of the kind of cyclicality of, of the value added services would be interesting.

Sure. Thanks, Marvin. So I'll give it a very, very, very simple answer. Promoted gigs is an ROI positive program since we launched it. It makes money for sellers. It doesn't matter if it's good times or bad times. The impact they have is positive. And as long as it's positive, they will continue using it more in overtime. And because of that, you know, in many ways, it is disconnected from, you know, the economical times. I hope this addresses the... Sure.

Understood. Thanks. And then maybe my follow-up, you know, a lot less talk on AI this call. And I guess I'll just lob a question in here. You know, could you could you speak to anything about about the growth of that of the business? And I guess, just interested, I know you won't give us anything specific, but, you know, taken as a as a whole, you know, are these kind of categories related to AI that you've launched? And let's call it the last year, you know, how, you know, has that become a, you know, pretty measurable part of GMV? Any characterization of that would be would be great. Thanks.

Sure. So, you know, I did address this also in how we think about next year and, you know, the fact that AI both impacts the efficiency of how we work, allows us to do pretty incredible things in our product, and also has an impact, positive impact, on the categories that we can introduce. So again, we're not getting into specific category breakdown, but what we're seeing on the buyer side, I think We've introduced these categories. These categories continue growing. I think that a lot of the hype that surrounded AI in the beginning of the year subsided, and right now it's really looking for the killer applications that could be developed with AI, and we're developing some of them, and our customers are as well. So these are definitely areas where we continue seeing growth, but not just that, but we continue investing in the catalog side to ensure that the new types of skills that pop up are going to be addressed on the Fiverr marketplace.

Yeah, just to be clear, when I said let's talk about AI, I guess I meant questions from us outsiders. I mean, you guys are doing... Yeah, well, I... Just didn't want to short shrift you on AI. So thanks for that. That's all I had. Thanks. Thank you.

Thank you. One moment for our next question. Our final question comes from the line of Rohit Kulkarni from Roth MKM.

uh hey thank you uh thank you for taking my questions uh and again kudos to you and the team uh for the level of resilience that you've demonstrated uh through these times um uh two questions one um just a big picture and probably kind of skinning the stay create cat in a in a different direction um part of the pun here but i guess um a big picture i mean there are internet marketplaces with uh advertising and subscriptions um clearly well developed. We have seen subscription penetration up to 40-50% of active users. We have seen advertising penetration up to 10% of global volume of that marketplace. I guess we'd love to hear your thoughts around where you are right now internally looking at those metrics at Fiverr and what are the puts and takes of Fiverr's marketplace to evolve into having much more significant penetration in advertising and subscription, because perhaps that kind of goes back to the multiple questions on take rate on this call. So that's one question. And then tactically speaking, how important is it for you to grow buyers on the platform right now over the next three, six months or so? And what is it tactically that you're doing differently versus probably over the last nine months?

Thank you, Rohit. Thanks for the question. So as to the first question, I would say the following. First, these are still products that are being evolved and they continue growing. It is important to also know that if that is being compared to other market bases where the component of promoted is much higher than if you would follow the makeup of their revenues, you would notice that their transactional component is far, far lower than ours. Meaning that when you make the majority of your take rate from the transactional component, then the expectation that you would be able to match this on promoted is unreasonable. And in the marketplaces where the component of promoted is much higher than the take rate is tiny in comparison to ours. So this has some explanation for the ratio between those two. Having said that, there is obviously more room to grow these offerings as they've been growing so far. In terms of the importance of growing buyers on our platform, as I've said, we are a growth company and we are focused on delivering growth. Now there's the balance of quantity and quality. And this has a lot to do with the opportunities that the market and the economy is providing to us. And as we said, the focus is less on quantity and more on quality doesn't mean that we don't want far more and we're optimizing everything the product and our marketing to do that but it means that in this economy in this environment we're very much focused on the quality of our customers again if you look at at an indicator like spend per buyer you see that spend per buyer is increasing pretty dramatically and we believe will continue to. And when the environment would shift, as I've said, I think we're going to see tremendous opportunity for growth across all segments of the market.

Okay. Thank you. Thank you. Good answers.

Thank you. I would now like to turn the conference back over to management for closing remarks.

Thank you, Gigi, for moderating today's call. And to everyone who joined the call today, I'm wishing all of us much better and more peaceful times. Have a great day.