VerticalScope Holdings Inc.

Hello, everyone, and thank you for joining the Vertical Scope Holdings Inc. Q1 2026 earnings call. My name is Claire, and I'll be coordinating your call today. During the presentation, you can register a question by pressing star followed by one on your telephone keypad. If you change your mind, please press star followed by two on your telephone keypad. I'd now like to hand over to Diane Yu, Chief Legal Officer at Vertical Scope Inc. to begin. Please go ahead.

Thank you, Operator. Good morning, everyone, and welcome to Vertical Scope Holdings' first quarter 2026 earnings call. I'm joined by Chris Goodridge, our Chief Executive Officer, and Vince Bellissimo, our Chief Financial Officer. We'll begin with commentary on the quarter before opening the floor to questions. Before we begin, I'd like to remind everyone that today's presentation contains forward-looking information that involves known and unknown risks and uncertainties and other factors that could cause actual events to differ materially from current expectations. These statements should not be read as assurances of future performance or results. Such statements involve known and unknown risks, uncertainties, and other factors that may cause actual results, performance, or achievements to be materially different from those implied by such statements. A more complete discussion of the risks and uncertainties facing the company appears in the company's management discussion and analysis for the three-month period ended March 31, 2026, which is available under the company's profile on ZR Plus as well as on the company's website. You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this presentation. The company disclaims any intention or obligation, except to the extent required by law, to update and revise any forward-looking statements as a result of new information, future events, or for any other reason. Our discussion today will include references to adjusted financial measures, including adjusted EBITDA, free cash flow, free cash flow conversion, and MAU, which are non-IFRS measures. All references to currency in this presentation shall refer to USD and must otherwise specify. Now, I will turn the call over to Chris Goodrich, CEO of Vertical Scope. Chris?

Thanks, Diane, and good morning, everyone. Thanks for joining us today. Q1 was a quarter of focused execution, and as I look at where our business stands today, I'm increasingly confident that we're setting up for a strong year as the quarters progress. The pace of change around us continues to accelerate, but as I've said before, the hallmark of Vertical Scope has always been our ability to adapt, evolve, and seize the opportunities that arise from change. The strength of our core operating model continues to build our balance sheet and increasingly is creating optionality. Our strategy continues to be anchored in four key areas. First is growing direct connections, both with our users and advertisers. Second is diversifying our revenue sources. Third, AI-driven product growth. And fourth, leveraging our strong liquidity position and cash generation to make disciplined investments to accelerate growth. Let me begin with our audience. Despite the significant shifts in the search landscape over the past year, the quality of our MAU base has really proven itself. MAUs averaged approximately 85 million in Q1, which was stable compared to Q4. However, we saw MAUs climb to 90 million in March as we continue to diversify our traffic sources. Increases in contributions from direct traffic and audience engine are driving these improvements. We're also encouraged by changes Google announced in early May to its AI overviews and AI mode products. These updates are specifically designed to surface more links to authentic voices and firsthand perspectives from online discussions. including showing the community name and linking directly into forum conversations. This represents a meaningful shift from where Google has been trending, which was towards more self-contained AI summaries that gave users less reasons to click through to the source. We've seen in the past that when Google makes product changes that point users towards forums and authentic user-generated content, that our communities benefit. It's still early, but we see this as a potentially significant tailwind for our traffic as these changes roll out more broadly. Vince will walk you through the details, but I want to offer my perspective on our revenue performance. The top-line result reflects what we've discussed previously. Q1 was our toughest year-over-year comparable, and the impact was again concentrated in programmatic, where we faced both lower traffic volumes, lapping last year's search-driven levels, and another quarter of relatively soft CPMs. The good news is that we're seeing signs that both of these headwinds are easing. Traffic trends have improved, and CPMs have started to firm up in Q2, which gives us confidence heading into the rest of the year. E-commerce delivered its fourth consecutive quarter of growth, up 25%, and is increasingly powered by AI-driven initiatives that I'll talk about in a moment. But we're also really pleased with the momentum building in our direct advertising business. Direct advertising grew 7% year-over-year in Q1 and now represents over 40% of our digital advertising mix from 30% a year ago. That shift is significant, and it reflects a broader trend. As the open web gets noisier and more saturated with AI-generated content, brands are placing a premium on reaching real people in brand-safe, contextually relevant environments. And that's exactly what our communities deliver. We're seeing particular strength in automotive, where OEMs and aftermarket brands are investing in immersive content campaigns to reach our highly engaged and enthusiastic audiences. Outdoors and power sports are also strong, and we've won meaningful new mandates in insurance and telecom in both the USA and Canada. Our pipeline for the second half is building ahead of prior year, and we're confident this channel will be a meaningful growth driver as the year progresses. And even through a period of significant change in user patterns, we continue to demonstrate our ability to generate free cash flow. Adjusted EBITDA margins came in at 20%, which is consistent with our normal seasonal pattern where Q1 is the low point, and we converted 86% of adjusted EBITDA to free cash flow. As we move back to a return to growth and begin realizing the expected gains from our investments in AI, we believe we'll be set up for even greater operating leverage than we've demonstrated in the past. Turn to our product and AI initiatives. We're pushing hard to become an AI-native company where agentic tools are amplifying the output of every team. To this end, we made an important strategic move this quarter with our partnership with AltML to embed four deployed AI engineers directly into our operations. AltML is a proven Canadian AI leader and will be a catalyst to accelerate our pace of change. This is about building production-grade agentic workflows in all areas of our business. The opportunity here is twofold. These workflows are designed to unlock new sources of revenue while simultaneously driving the kind of operating leverage and efficiencies that we expect will show up in our results as we move through the year. We've already identified savings that we're reinvesting directly into this work with AltML, and we expect to report on tangible outcomes over the coming quarters. Meanwhile, our core AI initiatives continue to gain traction. Fora Frank has become a staple of our community experience, adding value to human discussions and driving significant engagement improvements to threads. And our latest product release included a new commerce-focused initiative powered by AI to significantly improve in-thread commerce experiences. Within weeks of launching, this new feature is already delivering over half a million dollars of annualized revenue, and we have several paths to continue to scale it up. And last but not least is audience engine, which we introduced at our last call. It continues to scale in line with our expectations, providing us with new users and sources of profitable revenue. We're learning and experimenting as we build up this new capability and as we focus on finding quality audiences and optimizing their performance. Turning to data licensing. As I've spoken on past calls about the opportunity we see in this space and the patient approach we've been taking, The demand signal continues to be clear and persistent. Over the past three months alone, our Tolbin integration has blocked 275 million unauthorized scrape attempts across our communities from AI crawlers from the major LLMs. That demand is shifting the conversation. We're actively engaged in discussions that are more advanced and substantive than anything we've had before. At the same time, we'll continue to take the necessary legal steps to protect our content and intellectual property against unauthorized use. We see both apps, commercial and legal, as complementary, and we're prepared to move forward on both. We also recently relaunched the Forward Data API, which provides enhanced structured access to our community data for licensed partners. You can find information about our new API on our corporate website. Finally, a quick comment on capital allocation. The strength of our core operating model continues to generate healthy food cash flow and a consistently improving balance sheet. We entered the second quarter with over $75 million in total liquidity and very low leverage. We're well-positioned to deploy capital where it creates the most long-term value for our shareholders, and right now our focus is squarely on investments in AI that accelerate growth and operating leverage. On M&A, we continue to see high levels of inbound opportunities, but we'll continue to be disciplined and selective, acting where the right opportunity presents itself. So let me bring it all together before handing it over to Vince. The quality of our MAU base is clear, and we have several paths to grow. Direct advertising is growing, and our pipeline is strong. The AI investments that we're making through AltML and across our product suite are expected to contribute as real growth drivers and real operating leverage. And our balance sheet gives us the optionality to be opportunistic, positioning us well for some strong quarters ahead. And with that, I'm going to turn it over to Vince to walk through the numbers in more detail. Vince?

Thanks, Chris, and good morning, everyone. I appreciate you joining the call today. While our top line reflected the lapping of typical comparables, the core fundamentals of our business continued to power through. We demonstrate the durability of our cash flow generation, the discipline of our cost base, and the optionality we continue to preserve on our balance sheet. Combined, these give us the flexibility to navigate through a challenging first half from a year-over-year perspective while continuing to invest in core AI initiatives aimed at driving meaningful operating leverage and long-term growth. With that, let me walk you through our results. As Chris described earlier, Q1 represented our toughest year-over-year revenue comparables. Revenue was $11.6 million, down 15% year-over-year, driven primarily by a 22% decline in digital advertising revenue to $9 million. The decline in digital ads was largely due to a 34% decline in programmatic revenue, resulting from lower impression volumes and CPAM declines. With stabilized organic traffic, improving yields, and incremental contributions from audience engine, we expect this channel to return to historic sequential growth patterns as the year progresses. Q1 represents both the seasonal and structural low for the year. Programmatic remains a meaningful and highly profitable part of our business, and as conditions improve, this performance will directly flow to the bottom line. The declining programmatic was partially offset by 7% growth in our direct advertising channel, driven by increasing demand from advertisers and agencies for the contextually relevant, brand-safe environments our communities provide. We are positioning the operations that support this channel to benefit from eugenic AI capabilities in the coming quarters. Initiatives designed to enhance reach and scale while deepening our direct relationships and servicing our audience more effectively to partners. Our sales pipeline remains active with forward bookings pacing ahead of prior year, a positive signal as the channel moves through the balance of the year. E-commerce grew 25% in the period, largely driven by incremental contributions from Ritual Technologies, which we acquired in April of 2025. E-commerce remains one of our highest conviction growth levers. This is high margin revenue tied to a high intent user base, increasingly enabled by our AI initiatives. As Chris noted earlier, our AI-driven, in-thread commerce experiences have enhanced our affiliate revenue opportunities. We are focused on scale use experiences to further optimize our ARPU profile, and we expect them to be a key driver of commerce momentum as we move into the second half of the year. Turning to monetization. Total ARPU was up 3% year-over-year, despite an 18% decline in MAU. This is a clear signal of the underlying quality of our audience and demonstrates the tangible impact of driving growth in higher-yield revenue streams, such as direct advertising and e-commerce. Within that, digital advertising ARPU was down 5% to 3 cents. Decline reflects the shift in audience mix as we diversify traffic sources amidst ongoing changes to the search environment. These new traffic sources currently monetize at lower programmatic rates than legacy organic search-driven traffic. Our focus is on narrowing this yield gap by scaling our direct sales footprint and prioritizing AI-driven products that drive higher yield, engagement, and ARPU growth over time. Turning to our operating performance for the quarter, net loss for the period was $3.1 million compared to a net loss of $2.4 million in the prior year. The loss was attributable to the revenue decline and $5.1 million in non-cash depreciation and amortization largely related to acquired intangibles. Excluding the non-cash charge, the business was profitable in cash generative. Turning to our cost base, operating expenses were down 3% in the period, driven by ongoing savings from the organizational changes we made in mid-2025. As Chris mentioned earlier, subsequent to the quarter, we identified and executed on an additional $1.5 million in estimated annualized cost savings centered on headcount, software, and technology costs. Our strategic priority is to redeploy these operating savings into capital investments in AI through our partnership with AltaML. In total, we expect to invest approximately $2 million in CapEx towards AI initiatives this year, in addition to our existing $1 million capitalized run rate related to ongoing platform development. We believe this reinvestment of savings into AI workflows will drive incremental offering leverage as we exit 2026. With our cross-stage trending lower, adjusted EBITDA was directly impacted by the revenue decline in the period. Adjusted EBITDA was $2.3 million, down 36%, with margins compressing to 20%, from 27% in the prior year. Consistent with seasonal pattern we have described in prior calls, Q1 is a low point for margins, with profitability improving sequentially through the year and Q4 typically our seasonal peak. Our expectations on margins haven't changed. We continue to target 30% plus margins on a full year basis. The opportunity to expand margins to agentic workflows is real, and we will report back on progress as milestones are completed over the coming quarters. In the quarter, we converted adjusted EBITDA to free cash flow at a rate of 86%, identical to prior year. Maintaining these conversion mechanics to a completely different operating environment demonstrates the durability of our cash generative model. Operating cash flow grew 20% to 3.5 million, and we ended the quarter with 19.6 million in cash. In April, we made a $12 million voluntary repayment against our revolver, lowering the drawn balance to 32 million, and bringing our implied net debt position to approximately 27 million. Our revolver remains a core strategic asset with 68 million of available capacity to deploy at attractive rates when opportunities arise. The April repayment was a proactive decision to optimize our financial position and lower borrowing costs. We intend to remain aggressive on voluntary debt repayments for the remainder of the year, and we expect to exit 2026 with a net leverage below one times on a credit agreement basis. Looking ahead, Q2 will still reflect a difficult programmatic comparable, though we expect improved performance from the channel. As we move into the second half, the comparables clean up and we transition from laughing to leveraging a more stabilized base. The trends in our direct advertising channel, AI-driven opportunities in commerce, the continued diversification of our traffic mix, and the operating leverage we are unlocking through our work with AltML all combine to support a trajectory that improves as the year progresses. building long-term value for our shareholders and employees. Thanks for taking the time to listen today. And with that, I'll pass it back to Chris.

Thanks, Vince. We'll open it up to questions now.

Thank you. To ask a question, please press star followed by 1 on your telephone keypad now. If you change your mind, please press star followed by 2. When preparing to ask your question, please ensure your device is unmuted locally Our first question comes from . Your line is now open. Please go ahead.

Good morning. Thanks for taking my questions. Chris, I'll start with the MAUs. I mean, there is, I think, some pattern of stability here. There's no question, particularly when you consider the seasonality. Can you speak to what it's been so far? We're in the middle of May. it looks like that 80 plus, you know, whatever that number might be, end up being 85 million. That can be stabilized before potentially growing, I assume. But can you talk to what it's been post-quarter just to kind of perhaps corroborate that view?

Yeah, as I mentioned, Aravinda, the final month of the quarter, we were at 90, and we saw that continue to grow into April. And those patterns are holding steady. in early May. So we do think, like I mentioned, that the quality of that base is shining through. And as we experiment with new means of growing our audience, we'll see that And then we also think, you know, as I mentioned in my remarks, there could be some favorable backdrop with respect to how Google's rolling out new versions of its AI experiences that we think could be early to tell, but we think could be very helpful for us as we move through the year. Okay.

So just to clarify, April was higher than March?

Yes, April was higher than March.

Okay, perfect. And in terms of the direct component, can you maybe talk to how much sort of the direct traffic grew in Q1?

Yeah, I won't give an overall growth rate. What I would say is, you know, Google as a percentage is a minority of our traffic, and the direct is continuing to, you know, to build. So I'm not going to give specific breakdowns or specific percentages, but it's a very significant mix. And even within the Google portion of traffic that we call, you know, from search, there's a healthy portion of that that's branded, meaning people are just using the search engine to navigate directly to one of our communities. So you could call that direct. We don't do it in our internal tracking, but it adds to that base and makes the number, you know, even larger. So it's steady growth in direct, and that's certainly the plan to continue to build in a steady fashion.

And then perhaps for Vince, on the cost base, how should we think about sort of the OPEC space moving through the rest of the year? I know that you kind of gave a margin guide. I mean, you're sort of, you know, if I leave out the share base comp, your wages, your G&A and platform components, they kind of add up to, I think it's around just under $10 million a quarter. Is there more downside from here through the rest of 26? Or do you think that you've kind of, the Q1 reflects a lot of that action, cost action?

Hey, Aravinda. Thanks for the question. Yeah, so I did mention that post-Q1, we did do additional rounds of rationalizations, concentration headcount. But there are also some platform effect savings there as well. That's about a $1.5 million annualized run rate. So that won't be reflected in the Q1 number. In fact, if you had pro forma that change at the beginning of the year, you'd likely see margins for the business in and around 25%, which is more in line with the 27% we saw last year. We do think there's an opportunity with the work we're doing with Volta right now and the investments in the gigantic workflows to realize more efficiencies. It's too early to tell what that will be or when it will land in a year. But the motivation here is to sort of automate where possible a lot of the busy work that most organizations find themselves in. So, there is an opportunity. We think it's real, but it's too early to measure that amount and when it'll end.

Okay. Okay. Understood. Thank you. I'll pass the line.

Thank you. Our next question comes from Vince Valentini from TD Cowan. Your line is now open. Please go ahead.

Hey, thanks very much. So, Chris, on the content licensing, you say you're having more in-depth discussions than ever before. still leaning towards some sort of partnership where it's not just maximizing dollars you get, but trying to get some capabilities back from a partner on the other end is just as important? Or maybe you can just let us know where your head's at if it's more just money these days.

Yeah, thanks, Vince. That could certainly be part of the mix. We see that actually opportunity in a few respects. One could be through data licensing partnerships, but you have to remember also we're a pretty big cloud user, and that is often a component of those relationships and wanting to retain your business and help grow your business as well. So in our case, that's with Google as being a Google Cloud customer. But we do think that that could be part of the mix. The key thing for us, and I know we've been talking about it for a long time and said we're being patient and everything else, the key thing for us is having a proper value exchange. And if we see that through capabilities or access to technology and there's a clear win from a value perspective for us, then that can certainly be part of the mix. But we also see it as a financial opportunity to have a proper value exchange that hasn't existed.

Okay. And do these discussions give you confidence that something should happen this year?

I knew you were going to ask that, Vince. You know, I do think it's a fair question. You know, my expectation is that we'll see a P&L impact this year.

If we exclude that, any revenue that may come from that, take that out of the equation for a second. Are you seemingly signaling that we're still going to have some tough comps in Q2 on programmatic, so total company revenue growth probably still stays subdued or negative? Are you seeing at this point some visibility to year-over-year revenue growth being positive in the back half of the year?

Hey, Vince. This is Vince, and thanks for the question. So, your assessment of Q2, I think, is overall in line. We will see difficult comps. We call that programmatic from a year-over-year perspective, but the gap will be narrowing, and we're seeing that in April right now, or we saw that in April, sorry, and leading into May, that the gap in programmatic from a year-over-year perspective is narrowing. It's truly a tell in the back half, or when in the back half growth will be on the top line. We have so many irons in the fire right now. We've signaled on direct. We've got some good signals there. We think that will continue growing into the back half of the year. We called out sort of early days on these AI-driven commerce initiatives, really encouraging results on minimal amount of work. And the team is looking at Maybe more iterations of that to drive transaction revenue across our platform, which just makes so much sense, given our user base. And then I think the third component is, you know, the work we're doing right now is also more broadly. The Argonauts generate some direct sales capabilities for us, allowing our sellers to be sellers. and eliminate some of that work that they're doing. So that should free them up and get them in front of the brands, and it's the major brands, that is, that really focus on our audience and our vertical. So it's really a sell, but, you know, we will see improving results. We will see that year-over-year gap narrowing as the year progresses, and there could be possible growth towards the end of the year and into 2027.

Okay, that's helpful. Thanks, Vince. And just to clarify, you've talked a couple times about the one and a half million OpEx savings run rate, but then you used the word reinvest and you linked it to some of the AI initiatives. To be clear, the one and a half you expect to show up as realized EBITDA or you're taking that money temporarily and reinvesting in better AI capabilities?

Yeah, it's basically reinvesting OpEx into CapEx. So that 1.5 million will be part of that 2 million AI investment for the year. So we expect about 2 million in CapEx related to AI that will fall in 2026. And that's on top of our current run rate, which is around 1 million in CapEx. And that's related to internal developments on the existing platform. So collectively, that'll be about 3 million in CapEx between the two for the year.

Okay. Thanks for that. So the EBITDA does go up, but the free cash flow does not?

There will be an impact of free cash flow, correct. Okay.

Thank you.

Our next question comes from David McFadgen from ATB Pointmark. Your line is now open. Please go ahead.

Right, yeah. And so, a couple of questions. You talk about having a higher volume of inventory from alternative audience channels. Can you tell us what those channels are?

Thanks, David. A variety of channels, social channels. We're looking at display networks. There's several different areas that we're looking at. What we're trying to do is find a match with audiences that kind of fit with how we monetize. And so, like I mentioned, we're experimenting in a number of different ways. We think it's a capability, an important capability that we're building that we haven't had in the past. And so, you know, and there's probably some obvious channels if you think about the nature of our business and our communities where we can find users that would be a good fit. So we're certainly looking in those areas.

Okay. So it seems like you haven't really generated a lot of traffic yet from these alternative channels. It's something you're exploring, right? Yeah.

It's generating real traffic. There's no question about that. Like I mentioned in my remarks, that combined with seeing some gains in direct have allowed us to kind of offset any of the noise we've seen from Google. So, again, we see it as a great capability. We think it can build, you know, it can really help build up the user base over time. But we're really, really focused on making sure that the ROI of users we acquire is there. We're not just looking to build an NAU number for the sake of an NAU number. We want to make sure we have real returns and real lifetime value.

Okay. But you don't want to share with us some of the channels that contributed some decent traffic for you today? You don't want to share that with us?

Not today. I think that's part of what we're trying to do to build that up. And I think we're better off as a business if we keep some of those tricks to ourselves, because I think there's definitely some proprietary aspects to what we're doing. And we want to make sure that we give that a real good chance to grow. Yeah, we may share more in the future, David, we'll see. But for now, we really want to give it the space to be able to build and grow. And we'll be changing and looking at different sources of audience all the time. So I don't want to send you down a path and have it change dramatically.

Okay. I mean, it's just, you know, from an investor point of view, you know, when there isn't transparency and all of a sudden we wake up and the quarter is bad because you've lost audience from the channel and it just comes totally out of the blue, it doesn't help to build investor confidence or multiple, right? So anyways, I guess that's just a comment. So, on the e-commerce side, what would the revenue growth have been if you exclude any acquisitions? Like, what would it have been on a pro-farm basis?

It would have been flat last year, David.

Flat. Okay. All right. Okay. Thanks, guys.

Thank you.

Thank you. As a reminder, if you would like to ask a question, please press star followed by one on your telephone keypad now, and we'll pull up the questions to be registered. Our next question comes from Gabrielle Leung from Beacon Securities. Your line is now open. Please go ahead.

Good morning and thanks for taking the questions. Just a couple of quick things. Chris, with the increasing proportion of advertising revenues coming from direct advertisers and perhaps an improving CPM environment, do you anticipate the digital advertising ARPU to start showing year-over-year improvements maybe in Q2 or perhaps in the second half?

What I'll say, I'll let Vince add his comments, Gabe, but we do see, you know, a clear, obviously a clear trend towards improved direct year-over-year. Direct monetized is at a higher rate, clearly, much higher than programmatic, and so that does lead through to that ARPU number. And on the programmatic side, like Vince had commented earlier, the gap there year-over-year is really closing, and It's really, it's twofold. I mentioned in my remarks, like you're seeing the comparable from an impression standpoint get easier, but CPMs have been a headwind for the past. a couple of quarters at least at Q4 and certainly into Q1. And we've seen that reverse in really the second half of April and into May. And so we're seeing, you know, more normal patterns from a CPM perspective. And historically what you see when you do have normal patterns is, you know, strong as you get through, you know, the later Q2. you tend to see Q3s being more or less similar to Q2, and then Q4, you see that big jump. So we think we're now back on a path towards that sort of more normal pattern. Vince?

Yeah, the only thing I would add there is I commented during my talk track The ARPU and the ROI, Chris comes in as well, that we're seeing from audience engine right now is low. It is ROI positive. It is much lower than CPMs we would have seen from historical organic search and definitely lower than the CPMs we're seeing from direct channels. So as we build out that muscle and continue to diversify that traffic base, one of the goals internally for us is to again, find a more lucrative ROI, more long-term value, engage with the audience that are going to provide direct contributions to our platform, et cetera. We may consider also in the future, depending, you know, on maybe splitting out that ARPU number and sort of giving the market that view. We're not there yet because the strategy is still evolving. Some more to come there. But overall, there is a valuation impact. from audience engine at the moment. So, we'll think of a way to package that up as the strategy continues to evolve.

Thanks for that feedback. And just lastly, just in terms of the data licensing opportunity, I mean, just given the amount of unauthorized great potential blocking, clearly there's a desire for your data. What might be holding back, you know, finalizing a deal here? Is it, you know, more on your end in terms of what you want or more on the counterparty side in terms of their willingness to pay? I'm just curious what the demands are in terms of the conversations there.

Yeah, it's a good question, Gabe. Like, I honestly don't want to say anything that's going to, you know, have an impact on discussions we're having. But I think it's a combination of things. Like, in reality, it's getting the engagement, it's getting the understanding of the impact and understanding the value, and also, you know, us not just jumping at the first option. We've deliberately been patient. We see this as a long-term play, and we continue to believe that that patience will be rewarded. And that continues to be our position. Obviously, you're right, the wording in our talk today has definitely shifted, and it's deliberate. But it's a combination of things. And I do think the fact that you're seeing the amount of blocking happening generally in the industry as kind of the open web kind of woke up to this over the last kind of year and a bit. I think we were relatively early in that respect. I do think, you know, sources of high-quality information, like authoritative human voices, you know, they really do come at a significant premium. You realize how much they're needed. to make the AI systems work and work effectively, you know, we're at or certainly approaching that point where the value exchange is surfacing and will make sense for something for us to do where it hadn't previously.

Gotcha. I appreciate that feedback and the progress and progress. Thanks. Thanks, Jim.

Thank you. We currently have no further questions and therefore concludes the Q&A session. I would now like to hand back to Chris Goodrich, CEO, for any closing remarks.

Well, once again, thanks everyone for taking the time today and thanks for all the questions. We look forward to seeing everyone again at our next call in August.