I would now like to turn the conference over to Joo-Hun Kim, Head of Investor Relations. Please go ahead.
Thank you and good afternoon, everyone. Welcome to Thinkific's first quarter fiscal 2026 financial results earnings call. Joining me today are Greg Smith, Chief Executive Officer and Co-founder of Thinkific, and Kevin Wilson, Interim Chief Financial Officer. After the prepared remarks, we will open up the call to questions. During the call today, we will discuss our business outlook and make forward-looking statements that are based on assumptions and therefore subject to risks and uncertainties that could cause actual results to differ materially from those projected. These comments are based on our predictions and expectations as of today. We undertake no obligation to update these statements except as required by law. You can read about these risks and uncertainties in our regulatory filings that were filed earlier today. Our commentary today will include adjusted financial measures, which are non-IFRS measures.
They should be considered as a supplement to, and not a substitute for, IFRS measures. Reconciliations between the two can be found in our regulatory documents, which are available on our website. In addition, our commentary today will include key performance indicators that help us evaluate our business, measure our performance, identify key trends affecting our business, formulate business plans, and make similar strategic decisions. Such key performance indicators may be calculated in a manner different to similar key performance indicators used by other companies. I should also note we have a slide deck that supports our remarks available to download on the webcast interface or on our website. Finally, all dollar amounts discussed today are in U.S. dollars unless otherwise indicated. I will now turn the call over to Greg Smith, Chief Executive Officer and Co-founder of Thinkific.
Thank you, Joo-Hun Kim. Good evening, thank you for joining us. I'm pleased to report we delivered a solid first quarter while continuing to execute on the transformation across Thinkific. I want to take a moment to welcome Leigh Ramsden, our new Chief Financial Officer, to Thinkific. Leigh will be joining us effective June 1st, 2026. He brings great experience to the team, and I'm very much looking forward to working with Leigh on our leadership team. Kevin Wilson, joining us on the call today, has been serving as an exceptional Interim Chief Financial Officer for us. I'm very grateful to Kevin and his team for the amazing work they've been doing. I also want to acknowledge that we're currently undergoing a couple of significant changes at Thinkific.
The first is our shift upmarket, and as much as I remain confident in this choice and the eventual results it will bring, like most changes of this nature, the path to success is rarely a straight line. We're in the midst of that journey now. I continue to see an excellent opportunity for us to perform better, having chosen this path. The rapid evolution of AI and its effects on our industry and SaaS are no less than the single greatest change we've experienced since inception, and probably in the history of technological advancements. While AI is a massive rising tide, it won't lift all boats. Some will sink. I am positioning Thinkific to be one of those that rises, and potentially significantly so. We are all in on AI at Thinkific. Our entire team is now leveraging it in every role.
From sales and support to go-to-market motions, I'm seeing teams adopt and evangelize the power of AI to help us go faster and deliver more value for customers. Most importantly, in R&D, we're moving faster than ever. In this area, I have seen teams deliver in days what once took months to build. This opens a world of opportunities for value we can create for our customers and ultimately revenue growth opportunities. We are still in the midst of this change as well, and we still have work to do here. My specific intents for the use of AI focus around the accelerated achievement of actual outcomes, specifically prioritizing revenue growth, while EBITDA improvements are also an opportunity here. I've taken a personal role in driving this forward across the company with specific focus on R&D, where I think we can see the biggest gains.
Evangelical AI adoption and use, combined with an intense focus on velocity, are now absolute requirements at Thinkific. Similar to our shift upmarket, we are now in the midst of this change, and I hope to be generating improved results from both later this year. I see these two vectors of change as very complementary. I've spoken before about the need to accelerate our product roadmap to better serve our larger customers. AI empowers us to do exactly that. As the AI era evolves, moving to larger customers positions Thinkific to capitalize on this evolution. Larger customers have both larger revenue opportunities and larger expense buckets. Both are areas that Thinkific can leverage AI to help them with making us inherently more valuable. I think there's fear out there about the effects of AI on software, and I'm very aware of this.
At Thinkific, we are constantly asking ourselves what our moats are and what significant value we bring in a world where software is significantly easier to develop. We have identified some key areas where we'll be deepening these strengths, focusing on value we can provide that others cannot build on their own. I believe there's opportunity here for us not just to survive, but ride the wave that AI is bringing to our industry to set ourselves up so that as each new model drops, we get exponentially better. Q1 marked the release of our new AI product, Thinker. As a reminder, Thinker is Thinkific's agentic product that allows any customer to create their own custom agents based on their own proprietary data and content, and to deliver those agents to their customers. Thinker agents differentiate from others, and they are focused on teaching and learning.
They specialize in specific topics offered by our customers, and they're customizable and are highly reliable and accurate. This accuracy is increasingly important both to our larger customers and as learners come to expect accuracy from their agents. Unlike generalized models, Thinkific agents are trained on our customers' data and further refined by Thinkific's own large data sets. Customer feedback has been very positive, reinforcing our conviction in the direction we're taking. While the benefits of Thinker are clear, its adoption raises new considerations for our customers. Pricing is primarily outcome-based, and as AI consumption scales, so do associated costs. While this means initial usage is muted, it also represents one opportunity for us to scale alongside the wave of AI advancements.
We are working with our customers to design the right commercial models to ensure that token billing ties directly to financial outcomes of revenue or cost savings in order to ensure customers are happy to scale their Thinker usage to any level. Thinker is also just one product area where we're leveraging AI. There are a number of others. We continue to make steady progress in executing against our new ideal customer profiles. We continue to see larger customers at the top of the funnel and improve our ability to close those larger names that have significant expansion potential in the future. One example from Q1 is a large online real estate marketplace that selected Thinkific to support continuous learning for its broker network while maintaining a strong sense of community.
The initial rollout will focus on a subset of brokers with significant room to expand over time, given that their broader community is orders of magnitude larger. Notably, this opportunity came to us through word of mouth within the real estate ecosystem. Word of mouth referrals like this represent a strong signal for the strength of our offering. In Q1, at a customer's request, we advanced our work to ensure Thinkific aligns with HIPAA requirements. This work landed us a new and rapidly expanding customer, and it also strengthens our ability to expand in healthcare and adjacent segments where trust, privacy, and reliability are essential. As I shared at the start, we're in the midst of two critical changes, our upmarket focus and the opportunities that AI represents. What excites me is the urgency I see in the team. We've accelerated our execution and will continue to do so.
This energy and mindset shift, combined with the powerful AI tools we're leveraging, present real opportunity for growth. I'm confident that Thinkific has the ability to not only capitalize on these changes but set ourselves up to be competitive in the AI era. With that, I'll turn the call over to Kevin to walk through the financials.
Thanks, Greg, and good afternoon, everyone. Our financial performance for Q1 2026 was in line with our guided range. Our Plus segment continued to deliver double-digit growth, Commerce revenue passed over the $3.5 million mark for the first time. Adjusted EBITDA came in just ahead of the midpoint of our guided range. Overall, while we're impatient for our efforts to be reflected in stronger top-line growth, we are pleased by the way Thinkific is managing through this period of strategic change and are excited by the potential of AI to create meaningful advantages for us and our customers over the coming quarters. For the first quarter of fiscal 2026, revenue totaled $18.7 million, a 5% increase year-over-year. The largest driver of growth is our Plus segment, where we are seeing strong upmarket interest along with improved traction on upgrades and retention.
Plus grew 12%, totaling $5.1 million for the quarter. Crossing the $5 million mark for the first time is an important milestone as we work to shift the bulk of our revenue to this larger and more durable segment. As expected, our Self-Service segment continued to slow, with growth coming in at 2%. The continued slowdown of Self-Service is both a product of our own shift in marketing investment, along with the inherent challenges at the low end of the segment. This slowdown reaffirms we are making the right strategic decision to focus on larger and more established customers. As much of our Commerce revenue is tied to Self-Service customer base, we're also seeing a corresponding slowdown on that front. That being said, total revenue earned from our Commerce portfolio crossed the $3.5 million mark for the first time.
Our depth in Commerce is a key differentiator for us in the Plus space and allows us to attract a broader array of customers compared to others in our field. Gross margin was 72%, down 2 points year-over-year, but consistent with the prior quarter. The year-over-year decline was primarily driven by a shift in revenue mix, reflecting stronger growth in Commerce revenue relative to total subscription. ARPU was $175, up 4% year-over-year and flat sequentially compared to the prior quarter. Subscription growth was subdued as we continued to execute on our strategic pivot upmarket. This reflects a deliberate reduction in customer acquisition spending in our traditional lower-tier creator segment while we continue to make progress upskilling our sales team to sell larger and more complicated deals.
These factors resulted in a total ARR of $61.3 million, up 2% year-over-year and up $300,000 sequentially. Commerce revenue growth was primarily driven by increased penetration of our Commerce solution into our customer base, as measured by GPV as percentage of GMV, which rose to 64% from 56% a year ago. As noted in prior earnings calls, at the current levels and with our existing feature set, we believe penetration rates are approaching a plateau around the mid to high 60% range and is expected to remain relatively stable in the near term. Take rate of 4.3% was down from 4.5% in Q1 of last year, but consistent with the prior quarter and within our anticipated range.
Note that take rate will fluctuate depending on the types of Commerce features being used by our customers in any given quarter. GPV of $75.7 million was up 16% year-over-year and 3% sequentially. The year-over-year growth in GPV is due primarily to the increased penetration of our Commerce solution. GMV of $117.5 million was up 1% year-over-year and largely flat sequentially. Turning to operating expenses, total OpEx was $15.3 million, up approximately $2 million both sequentially and year-over-year.
As we discussed last quarter, the increase was driven largely by a surge in AI-related investments, coupled with an increase in the depth and talent of our R&D team. As a result, R&D expenses increased to $7.1 million, up from $4.9 million in the prior year and $5.8 million in the prior quarter. We also incurred additional non-recurring costs in G&A, primarily related to the CFO transition. Sales and marketing was flat sequentially and down almost $400,000 over last year as we continue to refine our go-to-market approach and find savings and efficiencies across the board. Adjusted EBITDA with a loss of approximately $500,000. This was driven primarily by the largely one-time investments in our engineering organization to accelerate the adoption of AI tools and workflows.
These investments will drive productivity gains and support a faster pace of product innovation, allowing us to accelerate our product roadmap. On the balance sheet, cash and cash equivalents as of March 31 were $49.4 million, down from $50.7 million in Q4 of last year. The decrease of $1.3 million was primarily a result of the usage of $152,000 in cash flow from OpEx, $900,000 in cash used in the NCIB, and tax remittances of approximately $115,000 . I'll end with a few comments on guidance. Q2 2026, we're expecting revenue of $18.2 million-$18.5 million, representing approximately 1% year-over-year growth at the midpoint. Our revenue range represents continued stable gains in Plus subscriptions, offset by anticipated seasonal slowdown in TCommerce revenue.
From an EBITDA standpoint, we expect similar results to Q1, with a range of -2% to -5% of revenue. While Q1 included some one-time costs related to AI investments, Q2 includes a company-wide gathering along with costs related to our CPTO transition. In closing, between shifting towards being an AI-centric organization and our transition to serve more upmarket customers, the next 12 months are going to be pivotal for Thinkific. We are not being patient and are pushing the pace of change faster every day. On a personal note, I'd like to welcome Leigh to the finance team and the broader Thinkific community. As Greg mentioned, Leigh will be a great asset to the team, and we are pleased to have him here with us. With that, we can open the floor to questions.
Your first question comes from the line of Stephen Machielsen with BMO Capital Markets. Please go ahead.
Hey, thanks for taking my question. Greg, it wasn't lost on us that you're stepping into more of a product role. Is that gonna be a full-time thing? If, I guess if so, like, what sort of developments or specific things do you want to see that just weren't being achieved with the previous leadership?
Yeah, I appreciate the question, Stephen. I don't intend to add more to the senior team here. Yes, this change is permanent for the at least foreseeable future. I do have a strong engineering leader and product leader in VP roles, and for a company of our size, it's pretty typical to have VP Product, VP Engineering, and as well in some of the other, in the other R&D design and data as well, have VPs reporting into me. That's gonna work for the foreseeable future, and this allows me to just get a lot closer to the R&D team. Part of it is just removing layers so that I can dive in and ensure we're on the right path here. Part of it is really the injection of more velocity.
We were doing a really good job with AI adoption, but I think there's a huge step change I'd like to create here in terms of the in process and decision-making and how we move forward at pace to really take advantage of it. 'Cause AI can take us reasonably far, but there's a bunch more we can do culturally, I think, to accelerate the delivery of value for our customers. Then, yes, I'm looking at the whole roadmap. I think there's a lot of good in what we had planned and were planning to do, and a lot of value for customers coming and intend to complete the majority of that. There are some adjustments I'm making in part to between the acceleration of output and some of the adjustments to the roadmap.
I anticipate making more room for more AI-specific value that we can deliver to customers, which the intent there obviously is to drive some cost savings for customers and, some revenue driving for Thinkific as well.
All right. Very good to hear. Second question. Just, based on some simple ARPU math, it looks like the customer count has actually been holding up, quarter-over-quarter, which is not really what we would have expected given the, like the higher priority given to the Plus customers. I wonder if you can speak to any of the dynamics going on there. Like, are you just adding more Self-Service customers than you expected, or is churn lower than you expected? Yeah, any color would be great.
I think we've seen, certainly when we initially made some of those changes around the go-to-market and reducing the spend, as Kevin highlighted on the prepared remarks around the creator and bottom end of the market. We were surprised by how we did continue to add a number of customers there. I wouldn't say we're sort of through this whole journey yet, so we may still see some fluctuations there. You're right, as we move to larger customers, it may be that the customer count comes down and we see, but we see larger dollar value customers. To some extent, we are seeing sort of a shift.
To date, it's remained, as you said, relatively stable with not a lot of change, where we're kind of shedding some of the old, bringing in the new at higher price points. Over time, we may see that number come down though.
Okay.
For the good of moving to the right type of customers.
Yeah. No, no, of course. That's it for me. I'll pass the line. Thank you.
Thanks, Stephen.
Thank you. Your next question comes from the line of Gavin Fairweather with ATB Cormark. Please go ahead.
Hey, good afternoon. Thanks for taking my questions. Just to build off that last discussion, just on the Q2 guidance, it does look like there's a modest kind of top line decline sequentially. I know you talked about, you know, a bit of seasonality around commerce, have you seen any kind of change in self-serve retention or anything on the front in the current quarter that would maybe speak to that decline?
I think that is more, as we said, on the, on the commerce related, we are quite optimistic here about what we can create with AI to start to unlock this. Q2 is still in the midst of this transition and really specifically unlocking more with AI. My hope is that we can do significantly better than this in the future, being cautious on what we put out there in the near term.
Understood.
Just to add to that. Just to add to Greg's point. On TCommerce going from Q1 to Q2, we've got obviously inherent seasonality, but the other thing that comes with the self-serve customer base, which is the majority of our TCommerce revenue, is we get a fair bit of volatility quarter to quarter. Just what we're seeing thus far in the quarter leads us to be a little bit more cautious, to Greg's point, on Q2 as it stands right now.
Understood. That's helpful. Just on R&D costs, hoping you can help us out a little bit. They're $6.6 million in Q1, $4.5 Million year-over-year, $5.2 million in Q3. You know, kinda hard from the outside looking in to quantify how much of that was tied to the third-party kinda surge and consultants coming in versus maybe token usage and kinda driving AI into the organization. Maybe you can just help us understand what a future baseline might look like and how we should think about the timing to getting back to that baseline.
Maybe I can give some color, Kevin, you can talk more, a little bit of baseline, we may make some adjustments from there as well. The majority of that was the more one-time in Q1 there. We do have on an OpEx generally some more one-time expenses in Q2, that we are currently actually at the offsite for the whole team. On the R&D front, it wasn't a huge acceleration of, say, token expenditures there. I do expect us to increase the amount of token usage going forward, a lot of that was more one-time in Q1 there.
Appreciate it. Just lastly for me, just on Thinkific Plus, can you kinda discuss any product milestones that are coming up over the course of kinda Q2 or later, bit of 2026 that you think are really gonna, you know, unlock some further growth for that business?
One of the bigger ones is what we have actually coming out next month in May, is a whole new learner hub. This allows our customers to bring together their Thinker AI agents, their communities, and their courses and other learning experiences into one more cohesive experience. It's gonna look and feel a lot different than what others have on the market. A lot of learning experiences right now are a little bit homogenized, and so this breaks us apart and puts something that certainly when we've been putting it in front of customers for the last few months, it's gotten rave reviews. I think it creates a lot of opportunity. It also is a re-architecting of the underlying code to allow us to move faster on top of it with AI. That's a big one I'm excited about.
We've made some big recent improvements in our mobile app, in our communities experience that have gotten good reviews from customers and is actually starting to move metrics in a positive way there. There's more on the front of specifically what we can do for larger customers that's coming that are just a laundry list of asks that they have, whether it's to close more deals or stay with us longer. The piece I'm looking to inject more into the roadmap is how we introduce additional product to drive up ARPU and revenue opportunity with those customers, 'cause I think there's a big opportunity to do that, certainly with the use of agents.
Thanks so much. I'll pass along.
Thanks, Gavin.
The next question comes from the line of Robert Young with Canaccord Genuity. Please go ahead.
Hi, good evening. A couple questions. First one keeps tying in some of the other questions, but the ARR growth implied in the guidance, if you could help me understand the moving parts there. I was trying to parse your comments, and it sounds as though a lot of the decline, I guess it's $3 million decline quarter-over-quarter at the midpoint thereabouts. Is that mostly driven by Commerce? That seems like that's a larger amount than would only be driven by Commerce. How much of that would be Thinkific Plus decline and how much would be self-serve decline? Can you just maybe lay out those pieces? That'd be really helpful.
Just to be clear, are you talking ARR?
yeah. I'm talking about revenue, but I'm just simplifying towards ARR.
Gotcha.
I'm just trying to understand. Yeah. First question would be ARR looks like it's going to decline in Q2 overall. The decline in the revenue guidance suggests that it would be larger than just a decline in commerce. I think that's what you'd said earlier in the call. Is that correct or is the self-serve or Plus declining? Would ARR from those pieces decline? Does that make sense?
I can jump in there. The seasonality that you're seeing and the change from Q1 to Q2 this year is a little bit different from Q1 to Q2 last year.
Q2 last year, Q3 last year, we had a few customers in commerce having outsized success. As I mentioned, volatility in self-serve means that sometimes customers come on, have outsized success and then retire from the business, change their business model, change something in their business that doesn't show up in the same way. That's to some extent what we're seeing this year in going from Q1 to Q2. The vast majority of the decline from Q1 to Q2 is commerce, and that is larger than what we saw last year, simply because last year we had some customers having outsized success that we're not necessarily expecting to repeat this year. ARR should be in line with trends for Q2.
Okay. That would mean that the incremental or the added ARR in Q2 from both Plus and self-serve would be positive.
Yes. I'd say in line with trend, which has been-
Okay.
Yeah.
Understood. Okay, my next question would be around the token usage that you mentioned. We're trying to understand where that shows up, the cost shows up in the income statement. Does it fall into gross margins? I think you said that gross margins is going higher due to mix. Could you dig into that just a little bit?
Yeah. Kevin can confirm, [crosstalk] If you could identify where.
Go ahead.
Kevin, confirm if I'm wrong here, I don't think you would see a significant impact from token usage in Q1. Q2 going forward, we'll see more. Although we have been using token, it's not a huge line item at this point. We are doing a pretty good job of both leveraging the best of the models and the best models to managing the spend there as well. Where you would see that, Kevin, I'm not actually sure. Is that primarily R&D or have we split it entirely across OpEx based on team usage?
It's based off team usage, but obviously the majority of it we currently expect in R&D. I think we're learning as we go in terms of how the usage is going to differ from team to team.
Okay. What elements of the pricing model are consumption-based? Is it just Thinker at this point? Are you thinking that that might expand over time?
It is Thinker, and I do think we could expand that as well. We, we do have some usage-based pricing, but not on a token-by-token basis. With Thinker we do, which is the product itself is getting really positive response from customers, very excited about using it. We're just in the process of adjusting the pricing and the controls that customers have on the pricing so they have some ability to either moderate what they spend on it over time or ideally pass that cost on to the end user so that they're not as at all gun-shy about turning it on to full board. Most of our customers we're talking are really excited to roll it out and expand it as broadly as they can.
They wanna have some confidence about an ROI, and that's something we can give them if we allow them to flow through the cost to the final user.
Okay. The gross margin expansion due to mix, I think, what is the driver of that? Is that a shift towards Plus with less TCommerce contribution or some other driver?
Gross margin, I'll just confirm here, I think is usually that is a shift in mix between subscription revenue and commerce revenue, and I believe that was the case here as well, which meant a slightly lower gross margin, less than 1% lower, but a slightly lower gross margin based on that mix. If I've got that right. Yeah.
Okay. Nothing to do with pricing or anything else like that.
No.
Last question for me, and then I'll pass the line. If you could just give us a sense of the drivers behind the Thinkific Plus deceleration. I know the target a few quarters ago was 30% growth, and now it's somewhere around 12%. I think it was 12%. Like, what are the headwinds there, given all of the effort to sort of push that piece of the business? Is it just a retooling that's also impacting the Thinkific Plus growth or, are you still aiming for 30% and think that's possible in the short run? I'll pass the line.
Yeah. I think I have talked about it a bit on this call and a bit on the last call, and it really kind of comes down to we have entered a new market with a different ideal customer profile. Now that we are going heavy into it, we have realized there is some product gaps to fill. We are in the process of doing that. With AI, I think we can fill them pretty quickly. That is largely what the roadmap currently is for this year, is closing those gaps so that we are more competitive in that space with the larger customers while opening some new revenue opportunities. Largely it is things we need to do to amp up the product.
I've seen some really good success on our CSM account management teams, support teams, working with customers to do more there, as well as launch and onboarding. We're actually seeing some gains on the operations and more hands-on work that we're doing with these customers to win more deals, get them up and running, see them through success and keep them longer. The last gap we really need to fill there is on the R&D side.
Okay. Thanks. That's it for me.
Great. Thanks, Robert.
The next question comes from the line of Todd Coupland with CIBC. Please go ahead.
Hello, good evening. I had a longer term question, Greg. I'm just wondering if you could frame out whether it's one- year, three- year, five- year, what does success look like in a transition model for Thinkific? What's the ideal customer look like? How are they using the products you can imagine? Can you just talk us through what that may look like or what you think it could look like at this point in time? Thanks.
Definitely, yeah. As we look forward and we see through these transitions, good looks like to me that it is not exclusively Plus. I think that's sort of one misconception out there. Plus is a huge part of it because it's a higher price point, I see self-serve and Plus as plans, not customers. There's still an opportunity of bringing in people at the self-serve price point, and we see this consistently, then moving their way through price points and many of them making their way to Plus. The ideal customer for us is generally has a team. If they're coming in at a low price point, maybe five people or more. If they're coming in at the higher price points, often 25 and up, and sometimes in the thousands.
They are delivering training to their customers and often as a revenue stream for them, which can be a real differentiator because that's something that we do extremely well. It's really focusing on them and making sure we're meeting their needs. It's businesses that have teams that are delivering training to customers and ideally doing it in, at least in part as a revenue stream. That sets us up well to set ourselves apart. How we help them is over the next few years, there's a lot we can do on the agentic side to just roll out agents to both help with their actual OpEx while creating revenue opportunities for us.
Things that may cost them, currently hundreds of thousands or millions that, with the tooling we have, could potentially do it for significantly less for them.
Okay. Have you thought through your pricing model with, I guess a group of agents that you're offering to your customers versus a subscription model?
Yeah. Thinker being the first step in that where it is more usage and outcome-based. What's really outcome-based is what we're trying to move towards is so that as they're getting outcomes through the use of agents, that it's more pay based on outcome and success. And I think it's an obvious trend in software and one we see a lot of opportunity. If we can do more to provide better outcomes for customers that either have a revenue-driving outcome, a customer-facing outcome, or in many cases, an OpEx outcome for them, then they're a lot more amenable to the outcome or usage-based pricing. I think you'll see us and more and more software move in that direction.
Then sort of last thing for me. You say you're a first mover from your group of peers, but are you all seeing agentic-based competitors show up already? If so, who are they and what types of products are they already demoing to the market?
Yeah, I mean, I don't wanna throw a bunch of competitors on the call, but I would say that, I think every software company out there is looking at this, and if they're not, they're already dinosaurs. We do need to be looking at agentic solutions. It's a huge part of the stack now that I think any software company needs to be incorporating. I do see it all over the place. We were pretty quick to market with Thinker; with the specific functionality that it has, I think it's still something that it can stand out on.
I think there's a lot more we can do in terms of custom agents for customers or customizable agents for customers that go well beyond what Thinker is doing today. I think you're gonna continue to see this from most of our competitors that they are offering more agentic solutions for sure.
Great. Thanks very much.
Thanks.
I'm showing no further questions at this time. I would like to turn it back to Greg Smith for closing remarks.
Thank you all. Appreciate the wonderful questions and insight and time you take to spend with our company. As I highlighted on the call, I think we're in the midst of couple of exciting changes where I see a lot of opportunity. In particular with the use of AI rolling out to the customers that we're best suited to serve, I think there's a very optimistic here that we can move a lot faster and deliver a lot more value and create more value for all of you as shareholders, us as Thinkific, and of course for our customers, which is the base of it all. Thank you.
Thank you, presenters. Ladies and gentlemen, this now concludes today's conference call. Thank you all for joining. You may now disconnect.