Conference Transcript - SPT 2026-01-13

Scott Berg, Analyst — Needham

idea. Thanks everyone for joining us today. My name is Scott Berg. I lead the enterprise software and SAS research efforts here at Needham. 20th annual conference. That's the number showing in front of me at least. Someone just asked how long I've been here. This is my 11th conference, so been here long enough at least. Today with us we have Sprout Social. We have the company CFO Joe Del Preto. Thanks for joining us today Joe. I highly appreciate it. I guess let's get started with an overview of Sprout for those that are less familiar with the

Justyn Howard, CEO

Yeah, I would say, you know, at the highest level, you know, Sprout was created, you know, by the founders under this premise that similar to the phone and email that social was going to be this new communication channel between brands and consumers. And they thought everything from consumer behavior to what do I learn about products was all going to move to social over time. Now, at the time, it was just like Twitter and Facebook, and they didn't think that there were going to be this many networks, but they did believe that over time, this was going to be the number one place that consumers would go to learn about brands. Where would they go to complain about brands? Where do they go to learn about different services? We have folks in higher education. And so what Sprout does at its core is we integrate with over three dozen networks, social networks. We integrate into folks like Canva, Adobe Express. We integrate even like folks like, you know, Zendesk. And then on the front end, if you're one of our customers, you get access to log into one place and you can access all of those social networks from one spot. You don't have to understand, for example, the Instagram API from the TikTok API from the LinkedIn API. Because if you think about it, if you're natively managing all of those networks, then you have to understand how to log into every one of those networks. They all have different interfaces. They all have different ways to post messages. There's no analytics. And so what we do is we allow our consumers to manage our whole social strategy from one spot at the highest level. social customer care, putting out analytics, all the publishing, and we do that across 30,000 customers in 100 different countries. One approach we took that's different than our competitors, and this is a key thing, we're on a single code base. So every customer of ours, there's no custom code. And what that means or what the benefit that's given us over the years is like these social networks are constantly changing their APIs. There's new networks coming on board every

Scott Berg, Analyst — Needham

single day. So anytime they make one of those changes, on our end, we make an update and all

Justyn Howard, CEO

30,000 customers get that change the next day. There's no having to go out and deploy professional services resources. There's no need to call someone on the phone. So ultimately, that's what we're solving for, Scott, is like, hey, how can you manage your social strategy? Now, we have a bunch of other products that we can get into that do more specific things. But at the highest level, 90% of our customers are on five or more networks. If you're on five or more networks, It's really hard to manage that without a platform like Sprout.

Scott Berg, Analyst — Needham

You know, someone that's new to the stock, you know, new to looking at the company, I get that kind of basic question all the time. It doesn't even have to be five channels. It can be two or three because your pricing model is also based off of that. If you think about the number of brands and the number of channels, you know, five brands times five channels could be 25 different kind of unique opportunities. Yeah, we call them like profiles. You have 25 social profiles out there and manage that natively. And that's going to be a mess.

Justyn Howard, CEO

It's going to be a mess.

Scott Berg, Analyst — Needham

Versus a centralized approach.

Justyn Howard, CEO

If your social strategy is at that level, the reporting analytics become really important. Because I might be running a strategy on Instagram and then I'm running one on YouTube. And I want to understand, is my Instagram strategy stronger than my YouTube strategy? And so without a platform like Sprout, one of the big use cases for us is the reporting analytics. that allows you to evaluate your different social strategies across the platforms along with being able to run those campaigns themselves.

Scott Berg, Analyst — Needham

All right, so we're going to get into some industry questions here to start as we were just talking about the first one kind of off mic a little bit at least is, you know, there's been a lot of discussion in the last couple of years in software around, you know, the so-called death of software as AI becomes more embedded into workflows. I hope it's not the death of software because my job might be dead, but that's a whole different conversation. You don't have other skills? I might. You looking for an assistant or some FP&A role? We'll see what we can do here. You know, but Sprout sits on a large base of proprietary data. The data is, I think, super interesting for many reasons. But how does the data offset, you know, this view that, you know, AI death, the SaaS narrative, and how does it create a durable mode, you know, for Sprout over

Justyn Howard, CEO

time? Yeah, I think for us, if I think of AI and its application in our field, we think it can be huge benefit for us and the reason for that is what you described is there's very few folks that have access to the social networks there's only a handful of us at this stage that have integrations into these three dozen networks and a lot of that has to do is over the last five to seven years a lot of the social networks have downsized the number of folks they're giving access to because of privacy reasons people misusing their data or going out and reselling their data and so they're you know we've got a pretty big moat around our industry as far as being able to get into it and get access to networks you can't call up tick tock tomorrow and say hey give me access to your api i want to start you know managing you know a bunch of customers on it and so if you think about it we ingest about a billion messages a day across all these networks and so one of the things that we kind of previewed in our november what we call breaking ground or like product release is the ability to use ai across those billion messages that are coming in and if you think about social listening the ability to go in to Sprout and ask it like a normal chat GPT prompt, any question you have across these varying networks on your brand, on your competitors, on trends in your industry, we believe that through AI, we can basically supercharge that listening experience. And so we actually think the evolution of AI for us, because we're sitting on this proprietary data, is going to be a huge advantage. So we get pretty excited about it. And you're going to see some stuff that we kind of demoed in November that's going to start coming out in this month and in Q1 as it relates to, like, social listening and the ability to use AI on that data.

Scott Berg, Analyst — Needham

New products, new pricing, something to pay attention to, is my guess. You know, and consumers are increasingly using social platforms as a discovery and research layer. You know, traditional search behavior, you know, evolves. We've all seen that in a variety of areas, right? But how structural do you believe this shift is? And what does it mean to the long-term demand for social software like Sprout?

Justyn Howard, CEO

Yeah, we think over the longer term, this is a tailwind to our business, right? As search, as folks, as the LLMs have started to take a look over a little bit more of the search process, the declines in Google search, we've seen more and more folks showing up searching on social. And so what we've seen customers come to us is like, hey, they're seeing their customers that used to put a certain search term into Google coming into the social networks and searching for the same stuff. And so we keep getting more and more inbalancing. Okay, wait a second. If more and more customers are now searching for products or services on social and I don't have a social presence and I'm not paying attention, I might be missing out. So, you know, it's early stage, but we do believe that this is a tailwind to an industry or an opportunity for us where, we talked about this earlier, more and more consumers are going to social overall. I think this just might accelerate the fact that that's the number one place folks are going to go to search. And let's be very clear, and we have the data on this, like, it's already the number one place that Gen Z goes to search. and I think more and more of consumers outside of Gen Z are going to be forced into that into that approach

Scott Berg, Analyst — Needham

How do, I guess natural follow-up question to that is my guess is the brands and merchants you're working with understand that but do they truly leverage that properly with your platform my guess is there's still some opportunity there for them to use you even more

Justyn Howard, CEO

Yeah, I think it's more I think the folks that are invested in social and that have bought our platform or are using our platform. There's definitely more opportunity, right? Like we could do a better job, especially around what we talked about, the social data, the social intelligence. A lot of customers are using it today for more of the traditional social media management. That's publishing, customer care, engagement, analytics. The more sophisticated customers are understanding the importance of the data and the intelligence and be able to understand consumer behavior, and they can use that to drive strategy. So I don't think we're there yet. I think the bigger opportunity for us is outside of the existing customer base, which is all the potential brands out there that haven't adopted a platform like Sprout, is this the way to pull them in? Is this a, hey, by the way, I know you haven't invested in this category, but look at all the data and information that you're missing out of that could help drive decision-making. And so we actually think it could be a catalyst more from the new business side on top of the ability to expand with our existing customers.

Scott Berg, Analyst — Needham

Is that potential customer base not on Sprout or not using a social platform in general, is it large? Because I think the natural reaction would be it's 2026. If you're a reasonable-sized brand, you have to have a strategy here.

Justyn Howard, CEO

No, I will tell you a large, large majority of the brands we talk to don't have a platform. They're natively managing this. If you think about it, there's over 200 million businesses on social, and us and all our competitors probably have like 5% to 7% penetration into those businesses. And so most folks, although you think they would have something like Sprout, they just don't. And we run across that in very large enterprise brands that you'd be surprised that haven't adopted a platform like Sprout. So most of the opportunities we go into, we don't see a competitor. We go in the high end of the enterprise where it's more sophisticated, they're invested, we definitely see competitors. Once you get outside of that high of the enterprise, there's not a lot of competition. It's more, hey, by the way, have they hit the tipping point from a maturity standpoint that they need something like Sprout?

Scott Berg, Analyst — Needham

You know, as I look at the company's financial profile over the last six years, growth has slowed as we all know it for a variety of different reasons. But the Sprout platform sits in the middle of how consumers jumped online during the pandemic. And brands or companies seemingly had to up their social game in a hurry to obviously market and capture what this demand is. Several companies that I cover kind of oversold during the pandemic, and they've been fighting downsell trends the last several years as customers. Right-sized their usage, right? Not uncommon in software right now. But did you all at Sprout face something similar at all, do you think, the last couple, three years?

Justyn Howard, CEO

No, I would say what we faced was probably a little different. We didn't see a lot of, like, downsells. Like, we've had customers that are invested in social historically has been an underinvested area. And so in a lot of the scenarios, it wasn't like it got oversold within the organization. A lot of time, it was, like, probably undersold, and there's been more opportunity over time. What we've probably seen more, you know, post all the money being spent during COVID is probably the – and we've talked about this – more of Hedwin in our business has been more on the new business side and people adopting, like, creating budget where budget didn't exist before for a category that didn't exist internally. So not so much on the downsells, Scott. It's more that's been actually a really healthy part of our business is being able to retain and maintain our current customers. We saw more of the pressure when budgets got tight, all of that. We saw that more on the impact on new business.

Scott Berg, Analyst — Needham

With the launch of Trellis and MCP, Sprout is enabling customers to use social data kind of beyond the dashboard. But how does that change, you know, the role your platform plays inside of enterprises over time?

Justyn Howard, CEO

Yeah, I think the role it changes is it can allow us, and this goes back to what we talked about earlier, is the social intelligence and the social data can allow us to get in front of, like, more folks across the organization. I think it allows us to build using that data information to drive strategy to the CMO and the CEOs, maybe the chief product officer to understand, okay, hey, I just launched this product. What's the reaction to this product? What's the feedback on social? What are people saying about it? And how can I do that real-time so you can adjust your – maybe it's your marketing strategy or maybe it's your product strategy? And so I think the real unlock for us is being able to, in a more real-time basis, drive more engagement with the seed level. Like Sprout grew up, for the longest time, focused on the practitioner. We have really strong loyalty. we have really strong brand awareness historically with the people in the product day to day. As we built more of our enterprise features out over the last couple of years and we've seen the success upmarket, the next stage for us is how do we get in front of more of the C-level folks and get them more engaged in the importance of social? And so I think that's where we see kind of the next level of like where we need to get to from like inside these organizations.

Scott Berg, Analyst — Needham

Many AI products rely on generalized or public data sets while Sprout sits on a high signal social and creator data. How crucial is that data advantage in building a defensible AI strategy, do you think, over time?

Justyn Howard, CEO

Yeah, I think that's the key. I think having access to the social networks data, like I said earlier, there's a very few folks that have access to that data. I think that creates a really big moat for us. and the other thing is that we keep adding more you know data sets into that right like Instagram thread launched this year we launched blue sky we've launched you know tick-tock listening so like we got a enhanced partnership with reddit and so the complexity of social keeps changing it's not getting less complex getting more complex if you think about the number of networks integrations that we work with now and so what happens is as it get more complex for the customer, then the access to that data and the information that we sit on top of becomes more valuable. And so we think this is a huge opportunity for us.

Scott Berg, Analyst — Needham

You know, I see companies in a lot of different areas selling their data to the, you know, platform vendors, the gen AI platforms that are out there to help train their models. Do you ever see a scenario where these social networks might take that data and sell it to them, which might actually, you know, maybe compromise the data that you have?

Justyn Howard, CEO

No, like, we don't, if I'm Google and I have YouTube, do you think I'm selling my data to GPT when I have Gemini? So, and I don't see Meta, for example, giving all their information to Google. So, like, the way we see it is because a lot of these, the large social networks are creating their own competitive, you know, AI products, we don't see them waking up one day and start selling their data to their major competitors because they're trying to, like, beat them in the market. So we don't anticipate that happening. We don't have any indication that that's something they're interested in. And they actually are very restrictive to us saying you better not sell. So in our agreements with, you know, these social networks, we also can't sell our data to the LLMs. And nor do we want to because we're sitting on the data and we want to monetize that ourselves. So, like, I don't see them doing that because they're very restrictive on who gets access to the social networks.

Scott Berg, Analyst — Needham

I asked that question because that was part of a bare thesis I heard recently. Yeah, it's just. That doesn't make sense.

Justyn Howard, CEO

I just don't see Meta waking up tomorrow and saying, you know what, let's give all our data to open AI.

Scott Berg, Analyst — Needham

Good for you guys because you have all of it then. People got to come to you for it. So, okay. Let's switch to influencer marketing just a little bit. is how fast, with how fast influencer marketing is kind of growing and how it's become a core part of the Sprout platform, how does that influencer data and workflows fit into the broader kind of product vision and data going forward? Because I still think it's a category. You've owned it for a couple of years, but a lot of investors still aren't that familiar with it.

Justyn Howard, CEO

Yeah, I mean, we believe it's obviously a lot of that, if you think about the creator content where it shows up, it shows up on all the social networks, right? And so the overlap to what our core business strategy is, which is helping brands manage the varying types of content on social, if it's really, it was like really key part of our like overall strategy. If you think about most organizations when it comes to social, they'll have their organic social strategy, they'll have their paid, you know, social strategy, and then they'll have their influencer marketing strategy. Like usually like the three areas that they're focused on when it comes to social. And on the creator side, that was the number one request we were getting in from our customers saying, hey, by the way, we would love for you to get in this space. We think there's like a huge opportunity here. We would love to be doing some of this. And so what that has allowed us to do, and it's still very early, right? A lot of brands, though, still outsource a lot of that to the agencies. It's like trying to curate influencers is the biggest challenge I have, and that's what our product solves for. So what our product does that's different than the other products in the market is the discoverability so if you're a brand and you want to have 300 creators because most brands now understand that the real value in creators is like the micro influencers or the or the smaller it's not the large like huge brand because that that roi is not very good it's how do i reach the local golf pro that has a following or the local gym instructor and if you're one of these If you're Nike and you're trying to curate a couple hundred influencers, how are you going to find those? And so what our product does and the software we built allows you to go in there, if you're Nike, for example, put in your parameters and search across all these networks and find the creators. It tells you, it brings up all their videos. It tells you, like, here's what the average cost to hire this creator is. It tells you how many, like, what interactions that they had. The other thing we released in the last three to six months that's been really intriguing for our customers is this brand safety concept, which is I'm a brand and I'm looking for a creator, but I want to make sure they haven't historically said anything or talked about anything that's not, you know, I'm selling kids toys and they talk about cigarettes and, you know, like I don't want that creator. Or they've rupped one of, like one of the big things is I want to make sure I don't hire a creator that's rupped one of my competitors. And so we built this functionality that can go out when you type in these different creators and it can match. You put in the parameters and it says, hey, this is a really good fit. Based on the parameters you put and the things you do and don't want them to be talking about, this would be a good fit. And these ones are not a good fit. And so we released that lately because one of the biggest fears that's happened, like one of the biggest fears brands have is I hire a creator and then realize like three years ago they did some video that gets them in a lot of trouble.

Scott Berg, Analyst — Needham

There's probably as much brain destruction there as there is brain creation.

Justyn Howard, CEO

And so there's been a big hesitation for some of these brands to get into influencer marketing because of that, this helps solve that fear that they might have had historically. And that just rolled out recently, and so we're pretty excited about what that can do to drive adoption.

Scott Berg, Analyst — Needham

Now, I know when you all purchased Tager Media, which got you into this space, Justin talked about what at the time where I thought were some aggressive ARR targets around that solution, is how has that end market demand trended relative to these assumptions and as you kind of look back at that initial viewpoint what was maybe

Justyn Howard, CEO

not correct what i would say is overall we're very happy with the way it's it's going and so i do think the trajectory of that business is on par with what we thought and actually what we've noticed is and i'll give you a couple of the negatives on the positive side we've noticed that there's verticals that we did not anticipate would be adopting something like sprout like for example we have hospitals that use it for like fundraising within the organization like at the hospital to drive like local awareness for cancer or whatever so like sure whoever thought you know you think about brands and retail being but like we have real estate companies that use it for launching new buildings or they're going to open a new facility and they want to drive tenants and so like and they'll use local creators to help drive volume and traffic and so we found these other verticals that you wouldn't historically, like grocery chains are a big one. It's a big vertical for us that we didn't anticipate being. So on the positive side, I think the verticals we've been able to get into is outside of the original thesis. I think on what we, we knew some of this. I think on what we underestimated was the maturity of these brands to be able to manage this. It's still very early in a lot of these brands. They don't know what they want to do. They come to us sometimes and say, hey, we want to have an influencer strategy. We're like, okay, what's your strategy? Well, we want the platform. I'm like, okay, but you have to have a strategy. We'll help you execute the strategy, but we're not in the business of driving your actual strategy. And so what we found is a lot of folks are still trying to figure out and build out a team that can actually manage it. That's probably the one thing that is probably still

Scott Berg, Analyst — Needham

earlier and not and not as evolved as you would think is that lack of maturity partially related to maybe a lack of understanding of how to monetize kind of leveraging those influencers because i know it's all part of this i don't know kind of um nebulous viewpoint that someone can help you sell the product but you still you know some brands still don't know how to actually you know kind of find them and get down maybe actually drive you know how are they being useful in driving product sales.

Justyn Howard, CEO

I think it's also, I think it's some of that, but it's also like, how close, like what's the connection to the brand? Is this influencer really rep our brand correctly? You're trying to decide what's our identity that we want in the creator marketplace, and is this creator gonna represent us correctly? It's like a lot of this, they gotta understand what kind of strategy do you have and what types of influencers are you looking for is probably the biggest question, because if you don't know that, it's really hard to search for a creator if you don't know the parameters in which way you're looking for. That's probably the bigger thing is, like, what type of creators do you want to have? Like, what's your target demographic? Or what's the, you know, who are you trying to reach with this product or this service? Or, you know, it's like those types of questions they've got to answer.

Scott Berg, Analyst — Needham

All right. Moving on to go to market a little bit is, you know, third quarter was a strong quarter for you all in the above $200,000,000 deal size activity. Overall, the business has kind of bifurcated almost between your larger customer segment and the smaller one in terms of where the real growth activity is. I guess what's changed in the enterprise customer conversations that's enabling Sprout to move further upmarket at a great level of success but also report more durable growth there?

Justyn Howard, CEO

Yeah, I think the success in that bucket that you described, there's definitely been solid go-to-market investments, but I think the bigger driver of the success we've seen is the product investments we've been making over the last 18 months. If I think of the investments in social customer care and handling large volumes of transactions, I think about the investments we made and having workflows across various parts of our product, having multiple people in there. Some of the things we've done on the inbox, in the smart inbox, around filtering out spam messages. So I think a lot of the product investments has probably been the bigger driver of the success we're seeing up in the enterprise. Now, we've coupled that with better enablement on the go-to-market side, better education on which use cases are we solving for, having more internal use cases of success stories that we can talk to the customers about, along with some of the integrations I talked about earlier. We keep building out integrations into other platforms, which the enterprise customers find a lot of value in. And so I think those types of things have probably driven more of the success. than, for example, like, it hasn't been all go-to-market. The go-to-market's done a great job executing, but the product's been the driver.

Scott Berg, Analyst — Needham

As you look at those larger customers, you know, relative to smaller customers, do they fundamentally use the product different or maybe the use cases? You know, the two broad categories, maybe marketing versus, you know, customer care. You know, didn't know if there's a huge use case difference between them all.

Justyn Howard, CEO

There's definitely a use case. There's definitely a different use case when you get in that 50K plus. What you're talking in that scenario is, you're probably talking dozens, hundreds of users using every aspect of the platform. Engagement, publishing, they're using reporting analytics. They probably have one or two of our add-on modules. When you get to the lower end of the market, they might come in with only one or two use cases. Maybe they're just really strong publishing and they're really strong on the video type platforms. Maybe they're really strong with, they want really good reporting analytics. And so I do think, Scott, they definitely use the platform differently. There's definitely a different level of maturity and sophistication in that $50,000 plus bucket versus the folks that might be spending less than $50,000.

Scott Berg, Analyst — Needham

Influencer marketing that we're just talking about appears to be acting both as a monetization driver of your existing customers, but you're starting to land with it. At least I'm hearing more that you're landing with it. Has that been intentional? I mean, nothing's really accidental. Sometimes new customers can find you. But how intentional is that, and can you maybe lean into that even more this year?

Justyn Howard, CEO

It's definitely intentional. I think one thing it's allowed us to do is to get into some of the customers that may be vended with one of our competitors in the traditional social media management side, right? And maybe the contract's not up for two or three years. And now all of a sudden, we can go in with influencer marketing, which they don't have, right? Like none of our competitors have that product. And we can say, hey, by the way, I know you're with XYZ competitor for everything else. Well, why don't you look at influencer marketing and then we can get a foot in the door And then maybe when that contract comes up in a couple years with the rest of that business that gives us an in And so it's definitely been like a Trojan horse for us into some of these larger accounts

Scott Berg, Analyst — Needham

Probably two more questions for me than happy to take any Q&A from the audience just because we're starting to run out of time Let's talk about financials. I have the CFO here. I have to ask you a financial question or two Test your knowledge, I guess. Let's talk about the third quarter earnings. You delivered the best operating margins in the company's history, 11.9% non-gap margins, while still investing for growth. But how do we think about kind of that growth versus margin lever going forward relative to the company's current profile?

Justyn Howard, CEO

Yeah, what I would say is we're definitely focused on growth. We still think that that is like we're in an industry or in a category that has opportunity. So we don't want to be saying, hey, we have no more growth. We have a lot of growth opportunities. At the same time, and this has been going on for six or seven years now since we've been public, we're going to drive margin every year. So we believe that, hey, it doesn't have to be one or the other. I think we can still invest in the business and invest in things we need to do, but also grow margin. So I think you're going to continue to see us balance those two things. Scott, I don't think you're going to see us over-index one into the other. I don't think you're going to say, okay, we're going to go all in on growth and take margins backwards. At the same time, I don't think you're going to see us say, okay, we're going to cut into the bone. We're going to drive all this margin and kind of give up on growth. I think you're going to continue to see us balance that dynamic.

Scott Berg, Analyst — Needham

Ron, the growth question, if I look at the income statement in the last couple of years, growth has stabilized after decelerating for we'll call it three years now, roughly, organically at least speaking. is is this the kind of and you're not getting for 26 obviously in your quiet period today but how should investors think about kind of the growth algorithm going forward are we kind of stable in the slow double digit areas do you have opportunities improvement or would there be some items that might decelerate that number further that maybe folks haven't

Justyn Howard, CEO

contemplated properly yeah i mean i think without getting into 26 i think you know the way we think about it is you've got these two dynamics in the business that we kind of talked about we got this 50K cohort that we talked about that's growing in the high 20% range on a 12-month basis. In that business, we're seeing a lot of

Justyn Howard, CEO

success. And then you've got the sub-50K

Justyn Howard, CEO

business that's growing a lot less. And so I think part of the growth algorithm as it relates to, hey, how do you reaccelerate growth? Number one is that 50K customer base that's above 50K, that needs to be a larger part of our business. We've talked about this. That's probably in the low 40% of our total revenue. as that becomes a larger part of our business that's generally going to be so natural mix natural mix can pull it up the other you know factor that is like the sub 50k business we believe can grow faster over time as well and so i think if you think about the investments we've made over the last you know couple of years they've definitely been focused on growing that above 50k cohort of customers i think what you're going to see from us over the next year or so is like what are the things we can be doing from a product standpoint on the sub 50k because i do think there's an opportunity where that business can re-accelerate if that business re-accelerates then the overall kind of growth trajectory the business changes so i think you know we've done a really good job optimizing for the above 50k and now we've got to make sure that we're kind of balancing that with what we're doing on the sub 50k okay uh with that happy to turn it over

Scott Berg, Analyst — Needham

and see if there's any questions from the audience.

Justyn Howard, CEO

Yeah, so in our platform and the way that it works, it can pretty much identify, for example, like real influencers from fake it. That's part of the whole like discoverability on whether these influencers are fake or not fake through the platform. I think it's noise, and I think the benefit of our... So we believe, and this has been similar to, I talked about this earlier, like the spam filters that we built on the normal social media. Like there's all this spam on social. So one of the huge value props is if you use Sprout, we can, through AI and automation, weed out all the spam. So like the only thing you see when you log into Sprout is the messages you care about. So the same thing is like if there's more, you know, it'll be interesting. If there's more fake influencers, then potentially the need for something like our platform to weed those out could be more valuable. I mean we'll see we haven't seen a like a huge amount of that going on right now We have seen it on the normal social side where there's a lot of spam on social messages Spam filters for us is a huge. I mean, it sounds really simple But it's a huge thing that customers care about Especially our large customers are dealing with thousands hundreds of thousands of messages that come into their inbox every day

Justyn Howard, CEO

They don't want to see those

Justyn Howard, CEO

No, no, we're we're not seeing we're not seeing anyone wanting like an AI influencer We're definitely not seeing that because I think there's a big risk there to brand loyalty if the consumer figures out, oh, wait a second, you're using fake info. We have not seen that as a need.

Scott Berg, Analyst — Needham

Any other questions? Well, with that, we will give everyone an extra two or three minutes to fight the elevators. Thank you so much.