Let's get started. Good afternoon, everybody, and welcome to the Morgan Stanley TMT conference. My name is Lucas Cerisola. I sit on the US software team here at Morgan Stanley. Today I have the pleasure of hosting Amplitude's CFO, Andrew Casey. Andrew, welcome.
Thank you.
Before we get started, just a few disclosures. For important disclosures, please see the Morgan Stanley research disclosure website at www.morganstanley.com/researchdisclosures. If you have any questions, please reach out to your Morgan Stanley sales representative. You know, Andrew, welcome.
Thank you.
Amplitude has been an incredible company over the last couple years, you know, evolving, you know, over the course of that time. You've described 2026 as transformative with AI agents and new pricing. At a high level, what business is Amplitude becoming over the next couple years?
Well, I think it's increasingly Amplitude's becoming that infrastructure layer, that data layer and decision point layer that's bringing together behavioral heuristics, such as you continue to see evolution in software and products. You know, increasingly we're becoming more and more relevant into the marketing use cases, and I would say the customer experience use cases. You know, what I say all the time is that any customer who has a digital interaction with their client, they're gonna wanna know how that interaction has happened, how they can provide better services, provide better products, and make those interactions more meaningful. The use cases around that are, you know, how do you drive greater, you know, free to paid? How do you drive better conversion associated with loyalty programs?
How do you drive better interactions and repeat purchases with your existing customers? You know, we have a pretty broad base of customer industries, everything from financial services to retail, to fast casual restaurants, to highly technology companies, like even one of the largest foundational AI models uses Amplitude.
Got it. When you think about the next 12-18 months, what are the two or three key variables that you're most excited about across the entire business?
When I started, we had aspirations to be a platform. A lot of people gave us not a lot of credit for the ability to go build it. In fact, a lot of people said, "Look, everybody says that." We also talked about major strategy moving more and more into the enterprise. A lot of people said, "Well, of course, that's what a lot of companies who start off in SMB and mid-market wanna do." I would say over the last year and a half, that's exactly what we've done.
You know, through both this vision of a platform where all these applications we saw in the ecosystem that were leveraging analytics to drive outcomes for their clients, whether you think about in terms of, you know, experimentation or which is like A/B testing or Session Replay or Guides and Surveys. These were all applications and businesses that are $100 million-plus that are out in the ecosystem that were surrounding analytics. Customers were having lots of pain points about how they actually administer workflows by ETLing data from one place to another, dealing with UI issues, dealing with data taxonomy, and it wasn't very efficient. The vision was to bring all those applications together in one environment, such that you could easily draw those workflows between those applications. It wasn't easy.
I think that, if you would've asked me when I first joined, you would've seen a bunch of applications that had different software development kits that looked that they were separate. The engineering team did a great job bringing that together. For those people who are not very technological savvy, I tell them, think about a time when we had browsers, and you click on a browser link, and then another window would come up, and then you'd click on another link, and another window would come up. Suddenly you had to sprawl all over your desktop, all these windows, right? Then Firefox came out with this great idea. Let's take and make those tabs into the one environment, one window you're seeing, and you get greater organization.
Well, that was a great way to think about how you better manage your interaction in those environments. If you think about it foundationally, that's what Amplitude did. It brought all these disparate applications into one environment such that you're not ETLing data back and forth. If you get an insight and you wanna run an experiment on it's that easy to go just run an experiment. When that experiment comes back, if you wanna drive a workflow into targeting a cohort of customers based upon that experiment, you can go and act a guide or a survey on it real quickly. Spenser Skates, our CEO, has had this vision that product analytics is gonna evolve to the point where you have self-improving products. This notion that products are evolving based upon user interactions real-time, and that that becomes increasingly more personalized.
Well, the advent of agents into our platform is enabling that to occur because now agents are the ones who are picking up on insights and making recommendations, running experiments, and if you allow them to autonomously start making changes to the environment, so whether that's a web application, mobile application, or even a business process. This notion of self-improving products is not that far away, given some of the changes in the architecture that we drove and the agentic capabilities. When you ask me what I'm most excited about, it's this notion that we can go drive consolidation into a very fragmented market associated with product analytics, marketing analytics, and data workflows. It's becoming more real.
Because we did both the technology and executed well, and on the sales side, we did well to modernize our go-to-market and create a more enterprise motion than we had before, those things are helping to reinforce themselves. Even if you told me the agentic capabilities and all the things that we've introduced into our platform were not happening, I'd still tell you I was excited about the two areas that are driving our growth around platform consolidation, and the sales go-to-market team moving more and more towards enterprise.
Got it. Yeah, it's really exciting. The AI agents are a new functionality that you've developed.
Mm-hmm. Mm-hmm.
Could you talk about the early customer feedback, and the behavior that you're seeing early on with how they're interacting with Analytics, and Guides and Surveys and, you know, all the other offerings that you've talked about?
The things that we rolled out a few weeks ago were. You gotta think of it as agentic capabilities that drive optimization and broader use within the platform itself. Our Global Agent, for instance, if you look at the Amplitude UI now, you see a prompt, not a set of tools and widgets and things you have to go navigate. It's a natural language prompt, where you may say, "Show me the conversion rates on the funneling campaign that I had running last night." You get the information, maybe you get a few charts. You know, it enables the barrier to adoption to be lower, and starts enabling the business analyst as opposed to the technology analyst to use Amplitude. Plus you have basic agents around automated insights.
Now you can tell an agent to say, "Hey, these are the things I want you to focus on in the datasets that are coming back from the mobile application." The agent can run continuously about how those interactions are happening and give you insights onto what that user behavior is. They can also start running experiments on that data continuously based on the insights that the agent gets. You have an agent-to-agent path, and the experiments can start running. We have an agent that does summarization of Session Replay information. One thing agents do really well is take large datasets, and they summarize them for you. Think about the engineers that had to go watch lots of different Session Replays to get qualitative feedback on the interaction of their product.
The agent can summarize that and say, "These are the ones. Don't go look at 1,000 of them. Here's the three that exhibited this behavior that you should look at, and potentially you might wanna run an experiment to understand if you change that environment, what would be that outcome." Those things working together really will exemplify the power of the platform. What our customers who have been exposed in the beta have learned is that it's much easier to drive those workflows, and much faster to run some of the campaign analysis or promotion analysis or product feedback than they ever could before.
When we started talking about the agents and the optimization, that was the first thing the customer like, "I wanna learn how to do that." I'll talk about pricing and packaging in a minute, but the first thing they say after that was like, "Wait a minute. This is gonna cost me a lot too. Help me out with how me adopting that, how much is it gonna cost me?" We said, "Well, we have a solution for you." The other thing that was interesting, we started talking about MCP server and being able to connect to more data in a more seamless way. One of the biggest impediments to customer adoption of Amplitude has always been the underlying data taxonomy.
Most enterprise customers, if you go to them and you say, "Show me what your data architectures are and how you wanna use that within Amplitude," they'll show you a mess. Okay? The reality is MCP starts to help obviate some of that mess because now you're not having to do hard connections and integrations. You're actually able to use API calls to get to the relevant information. That doesn't help with necessarily quality, but the quality can be addressed through an agent actually working on the relevant data. I'll give you a use case where a customer started to bring in their CRM data into Amplitude, and they had five different definitions of ARR. Which one's right?
The agent discovered that the one that's used in most other places in adjunct applications was the top one, and that became the basis of the integration. There's ways in which we can use the technology to really add more and more value that customers can implement, and more and more data that customers can implement in a platform, and a lot of them are very interested in that. We knew that as we were going through this platform journey and in this move into enterprise selling, that our pricing and packaging was not right. It was absolutely inhibiting adoption. It was very complex. It created friction in the selling process. Customers didn't have transparency in what their usage was going to be, so they were very, they were very worried about the cost associated with adopting more of Amplitude.
We had really poor selling practices too that had penalties associated with customers going above and beyond their entitlement. Think about a customer who had, you know, 1 million events as part of their contract, maybe we're charging them $20 per million events ingested. If you go look at one of our order forms, we used to have a clause that basically said, "I'll charge you 2x or 3x if you go over that." Talk about disincenting adoption. You're putting the fear the customer's gonna get a bill the moment that they're not managing their data ingestion correctly. We flipped that and we said, "Look, if we're gonna be a platform, you gotta.
The first principle is you gotta incent adoption, and you gotta lean into the customer value proposition, help them understand how they're gonna adopt, be more transparent on what those costs are gonna be as they adopt more. Give them an incentive to displace other applications that they may have around this ecosystem. We had to have an approach that the philosophy, and our pricing strategy was not a premium pricing. It was one that was value for the money. That if I go into any customer and say, "I'm gonna replace three applications," what they pay us is less than what they're paying those other three. Those things had to be abolished.
I actually, when I joined Amplitude, I gave the board a report out after 30 days. This is one of the things already using a volumetric billing meter based on the number of events that were ingested into the platform. It's not seat-based. It was already on that volumetric. We didn't know if that was gonna be we should continue it, but customers came back and told us, "No, actually, that data ingestion is a great proxy on value that we're getting from Amplitude." We kept it, and it's good because it was 86% of our install base was on event-based volumes. What a lot of customers didn't like was that when they adopted more of the platform, they got additional billing meters.
If they adopted experimentation, they had a meter on experiments. If they adopted Session Replay, they had sessions. If they adopted web analytics, they had web sessions. We said, "Look, that's too complex, and that's pushing more license administration to our clients. What we need to do is simplify it as much as possible." Now, rather than having specific meters. We have a value-based uplift based on the data ingestion. If they're paying us $20, like the example I gave you before, they may pay us $26 by adopting experimentation, or if they do another one, they may pay us $32 per. It's an uplift based on the data they're using and how they're using across the different modules themselves.
Why that's important is because it gives simplicity and cost predictability, transparency to our clients, especially if they're gonna use this over a number of years, and allows us to go right back in and show how customers have that cost predictability when we quote against the install-based competitors.
Got it. Could you talk about the breakout between those within your existing customer base who've adopted this pricing versus those who haven't? What do you expect that to grow this year? Maybe over the next two.
Yeah. I'd tell you that we were testing it through Q4. There were. One of the things you do when you introduce a new pricing packaging, you don't try to automate it right away. You try to make sure that it's gonna be the right one. You test it. We did that with a number of clients. I can tell you that as an example, and I expect more of this will be the case, that the customers talking to you first had aspirations to replace an incumbent with a Session Replay and their analytics. That was a 2-product solution they were looking at. We started talking about pricing and packaging and they were expressing interest in experimentation and Guides and Surveys.
We showed them what the pricing and packaging could look like, they said, "Well, I'd like to do that now." What happened was we increased the size of that deal. We also increased the contract duration of that deal. I think they're gonna be a great customer of us longer term. A lot of times when you simplify things and give cost predictability, they look at it very favorably.
Got it. Then kind of combining both the new pricing and packaging with AI agents, one of the things that we're really excited about is seeing your core customer base expand into more non-technical users.
Yeah.
Andrew, have you seen that more recently?
Mm-hmm.
These new updates? Or just talk about.
Yeah, yeah. I mean, another one of the customers I was talking to was a pure marketing case, they were having a lot of pain between you'd consider IT or data, the data environment versus what they wanted to run on their campaigns on a regular basis. They looked at Amplitude as breaking down that barrier, then quickly they could manage their campaigns on a regular basis and not have to, you know, worry about the data transfer from the IT department. There's definitely that aspect happening as we move into more and more use cases. The frameworks around agents just enable that business process to work more smoothly.
The thing we learned too is, you know, go back to pricing and packaging, the other thing we learned is we added agentic capabilities. The customers are tending to ingest more data into the platform because they're seeing more use cases, and they have a high propensity to use a broader set of suite of products. Both the cross-sell and the up-sell mechanisms and the pricing framework we're applying to it allow us to monetize as people use more of the agentic capabilities.
Got it. Talking about net retention here, you're currently around 105%.
Mm-hmm.
With a long-term goal of 115%. Can you help walk us through how we get to that 115% goal and maybe the timeline that you forecast?
I think you're gonna see us continue to be innovative on adding more and more modules. That cross-sell. The cross-sell is really what's driven us from that 96% to 105% improvement. Throughout the last year and a half, we've had to overcome some overcapacity sales. Even if data ingestion rates were increasing in our core customer base, we had to overcome these contractions and churn that have been caused by that poor selling. I'll give you an example. I had one of our largest contracts was renewing in early 2025, and data volume hadn't changed. They were using, but contractually, they had the ability to reduce their rate by 33% upon renewal. Why would we have ever taken the full value of the ARR at the time?
It's not something I would have done, but because there's a high propensity for them to renew if you're giving them a 33% reduction and they're using. That's some of the bad constructs that were out there that we had to go overcome. We're past most of those, what's good is data rates continuing to increase in the platform, and we don't have those contractions. Suddenly, upsells become a meaningful aspect of Net Dollar Retention. Okay? Let's call that five points. Okay? Cross-sell continues to get more and more robust. We still have In our investor pack, we showed how the percentage of our ARRs that's resulting from customers who have two, three, four and five products. We have 74% of our customers are actually on two products now.
If you go down to five products, there's only 20% of our customers. There's still a great opportunity just within that product set for us to expand. I would tell you, we're gonna be introducing some new products in the very near future in the marketing analytics space, in the Agentic Search Space that we'll charge for.
Right. There's a ton of new app development, obviously with AI facilitating-
Yeah.
That process. Could you maybe talk about the breakout between, and you kind of just touched on it a little bit, but the opportunity within your existing install base versus acquiring net new logos on a go-forward basis?
I'm one who preaches, especially at this level. We call it $350 million-$400 million in size. You know, we still should be generating a good proportion of our ARR that's coming from new logos. I was worried when I first joined. We were more 30% new logos and 70% expansion. We started re-architecting territories, driving prospecting aspects more. Our marketing demand gen was targeted more at new enterprises. Enterprise new logos take longer. You gotta set up a master services agreement. You gotta do a data protection agreement. You gotta do security reviews. You know, it just takes longer, especially in enterprises. That was a little worry too, coming in, like how do we, how do we start shifting this percentage a little bit more?
Well, in Q4, we saw it in the beginning of last year too, there was better balance. You saw more new logo ARR and I would love to get it more like 50/50 or 40/60 as opposed to 30/70. In both first quarters, you saw more new logos and thus last Q4, it was a really great balance. We had record number of new logos in the greater 100,000 new lands, and we had 18 new G2Ks. I think we're still in a place where we have plenty of room to go after new logos. We only have 162 G2Ks under contract. We're way under-penetrated in the Global 2000.
Right. Then as you continue to make more investments going further up market and adjusting to this new pricing model, could you talk about, you know, long-term gross margin profile and more of the unit economics as you make these transitions?
Gross margins, we're actually a pretty simple business from a cost to serve perspective. The biggest cost we have is our hosting costs right now. You know, we're primarily in AWS. Over time, we'll probably get into multi-cloud, but because multi-cloud will open up more retail, as you can imagine. The other costs are associated with software applications used to help run the environment. Services costs, where we're actually doing professional services. That was a straight cost for a long time. We weren't even charging for services. You have cost associated with inference, which is relatively new. It's still relatively small. All those costs are built into our cost to serve.
One of the first things we did when I joined was we put a plan together. That plan said that engineering had to take some effort and focus on driving the marginal incremental cost of data into the platform down, so that we're constantly re-architecting and re-engineering how our application runs in hosted environments to allow us to, as we add more customers, add more data, that it's not linear increases for us, right? We're driving that down. I talked about the services business. You know, I, we're never gonna have a huge services business. It's 1% today. Could get to 3% or 4% over time as we get more and more complex. Frankly, more and more customers are asking us to help them with their Agentic implementations of workflows.
We're also gonna build a partner ecosystem to do a lot of that for us. We gotta make sure that as we're increasingly seeing larger and larger customers move into leveraging our agentic capabilities, that we're managing those expenses and monetizing appropriately. There was a quarter, I think it was Q3, where we saw a very much an increase in the data ingestion in the platform. We'd already started making changes in how our go-to-market was. We weren't gonna drop an invoice on our client. We were gonna have a conversation with them first. A lot of times those conversations came back, "Yes, but maybe I need to align it to my budget a little bit better." The monetization took a little longer, but it also was more durable.
Some of those things I think is a push and pull on the gross margins. We made improvement. We improved gross margins year-over-year. Our long-term aspirations certainly being low 80s, but, you know, there are gonna be points in time where we may see spikes in demand in one area. I would encourage everybody to think about when that happens, we've instrumented it such that we're gonna monetize it and keep driving improvements. The same goes for sales and marketing. Sales and marketing is too high as a percentage of revenue. It needs to be in the low 30s. We're in the low 40s. G&A, when I joined, was 17%. Now it's at 12%. Those two areas are continually gonna drive scale. R&D is the source of our future innovation.
I'm gonna try and keep that right around 18%-20% regularly. That'll come up when we do small acquisitions, and it'll go down when we see greater scale.
Got it. One thing you mentioned in that answer was partnerships. You know, could you talk about how those partnerships, particularly with the data platforms, change the growth algorithm going forward?
Yeah. It's funny. It's another area I told the board in that first 30 days, like, "Here's an untapped area for us as far as future demand goes." We were only getting 2% of our, of our pipeline from partners. We didn't have a great relationship with AWS. We had no go-to-market relationship, so we renegotiated that whole contract. Now we do, and it's much, much more positive. You see us have strong relationships with technology partners that are in different parts of the, I'll call it, the path for which you're delivering value to clients, like a Klaviyo or Braze would use an analytics layer to go drive, you know, what they're doing in their last mile marketing.
There were good partners with HubSpot, there's a number of areas that I think we're increasing to see with like Slalom and Merkle and others in the value-added reseller space. Ultimately, if we create a framework under which they can create value on top of Amplitude, maybe they develop their own agents for logistics or for retail or for healthcare, they start monetizing that provides a basis under which, you know, increasingly more and more global systems integrators will wanna do something similar. Over time, I think that channel has to be something that is, you know, north of 30% of our, of overall pipeline. As we get more and more embedded with enterprises, that's the way they've historically consumed.
Right. You've talked about in the past winning simple and winning the enterprise.
Yeah.
When I think about app development going forward, there's a lot of new entrants into this space that may not be your key focus area right now as you move up market. How do you balance the investments needed to maintain that demand profile from the lower end but also move up market?
Yeah. It's a push and pull you have all the time. Just yesterday, our executive team was talking exactly that with some programs we're rolling out to some of our VC friends for their portfolio companies who are startups. You know, we're not gonna make a lot of money on that group, but we'll make good money once they grow and start developing their own application and value sets. I mean, at one point in time, there was a number of our customers who were very small, and they graduated into paid plans, and we see that continually.
Got it. Let's shift gears to competition and positioning. You've highlighted an accuracy advantage in complex invented queries versus the warehouse-native platforms. Can you speak to the durability of that differentiation and where do you see that going in the future?
I think that's one of those areas where you just, you just have to continually innovate and provide the context back on the use cases that customers are valuing. If you're gonna pin down our engineers, they'd tell you there was a lot of work to give those queries context and understanding how to get to the right level of a query. Which query is the query that follows on when you get the answer? How best to instrument that. It is, in many respects, the underpinnings of what we call our Behavioral Graph, which is we spent years and years and years developing. I'm not suggesting that, you know, that gap doesn't close over a period of time or that it doesn't change in its dynamism and complexity. It will.
We'll continue to recognize that that's the case too, and innovate around it.
Got it. As product analytics and marketing analytics converge, how does your simplified pricing model and AI-native architecture, you know, meaningfully improve win rates versus the legacy vendors in this space?
Again, one, the pricing and packaging does a great job of that because we can go right into any customer pretty much and say, "Look, if you got three or five applications that are competing, we can show you a value for the money where you'll pay less in licensing by standardizing on Amplitude." We've also done, as I mentioned earlier, a great job of showing how you can optimize the workflows. It used to be, you know, very cumbersome across those application environments. I would tell you from a product and marketing analytics space, every business is trying to figure out how they better digitally engage with their clients, whether that's a service or a product, what have you.
They are trying to figure out how they do that in a more efficient and more meaningful way and get better outcomes. That means that more of the classic marketing cases are moving towards what you consider treating their campaign as a product or creating their promotion as a product. That lends itself to the architecture that we've built.
Right. Let's shift gears to financials. You know, RPO grew 35% year-over-year, and looking at contract duration, that's nearing 22 months now. You know, how has the structure of these deals changed for the past year, and how do you expect them to continue to evolve?
Yeah. Believe it or not, there used to be a philosophy in our sales team that customers didn't want more than 12-month contracts. I said, "That's fallacy," especially in the enterprise. Enterprises, there's always this push and pull of, like, do you wanna pay for something you're not using, so you get software or cloudware or whatever you wanna call it, versus I want cost predictability for the term of the agreement, and so that I'm not gonna be surprised on costs as I start to adopt. In the SMB mid-market space, they're very concerned about their cash flow and getting unit economics. That group, I would agree.
For the most part, they'll wanna have 12-month contracts, and they wanna make sure that they're getting the right technology and instrumentation, especially if they're trying to prove product market fit in their own product. The enterprises think differently. Enterprises oftentimes either have a homegrown application or they have a competing application, and they're planning for when they're gonna transition over. They want cost predictability. I've increasingly taught our sales team how to have the right deal construct conversations to meet the customer needs. You know, a lot of times they used to talk about our technology. What I want them to talk about is what the customer wants to achieve. The customer tells me, "Look, I really wanna move over from this Session Replay vendor to you, but I have a problem.
That contract goes for the next five months." I say, "Well, let's do a construct that says, you're not gonna sign up for just, you know, in five months because that's not realistic. You're gonna have a transition period. You need to use us as a staging period. You need to test this out. Let's, let's set up a construct that's, let's call it three years. I won't charge you as much for the first five months, and we'll charge you more in years two and three." Right? That's a simplified construct that we've taught our reps how to do, and suddenly they go, "Wait a minute, I just got them into a three year contract." Yes, you did. Because you listened to what was most important to them.
A simple one I always tell our reps is, if a customer tells you you have a budget problem, you know what the first question you should be asking? Are you talking in terms of expense or cash? Because how you respond to that will determine how you should construct. If they told me, "I have a budget problem, an expense problem. My budget period doesn't start until January first," well, giving them better payment terms doesn't help with that problem, right? What you really wanna do is figure out how we can get aligned to their budget-
Yes.
... when it's possible.
That makes sense. Let's talk about IT budgets. Where does the budget for Amplitude typically originate today? Could you speak to the defensibility of that during an environment where IT budgets may get compressed?
A lot of times our initial core use cases are product analytics. You got the CTO, the product manager, the product developer. Those are the classic personas we're going after. I'd say increasingly we find ourselves with more broadened marketing analytics. You're going to CMO, the business analyst, or you're going into potentially even the CIO environments. When we dealt with The Economist, they were moving the business from pure print to subscription, and they're using Amplitude to understand how users are interacting with content, and that influenced what content they curated, meaning, you know, want to see when customers are browsing versus actually engaging. They use that information then to go build out what their advertising campaign was. They also use those interactions to understand what customers would value in the subscription packaging.
That transition was one that enabled them to move into the digital world, but then broaden out. The discussions on workflows and how Amplitude was being used, and the people that we were selling to were the CIO, the CTO, and the Chief Marketing Officer. They were together in that discussion because it was so essential to their transformation. It kind of depends on what the use case is and who you're talking to. Our view over time is there aren't these silos of operations and data, that they're increasingly converging. It kind of depends on the business and how they're organized and who's gonna be the one who's trying to solve the core problem for the business.
Got it. Let's shift back to product for a second. If you think about the future investments in the business and the current segments versus investing in new segments, how do you split, you know, forward investment between your existing products and the demand you're seeing there versus, you know, new areas you wanna explore?
Yeah. It's a hard one because, I mean, that's the level of maturity we've had to adopt even in our planning process. I can tell you, we go set a plan, and that plan has a limited amount of funding for R&D, and then they work with sales and our customers to try to prioritize as best they can. Invariably, you're gonna draw a line and say, "This is where we're going. This is as far as we're gonna go." There are some things that you would say are enhancements and improvements in existing applications. Like when we did Session Replay, we had had a specific gap versus the incumbents out there around mobile. Mobile, we had to have Session Replay mobile. That was a high priority.
Well, there was others that, you know, on the marketing analytics side around orchestration and merchandising and e-commerce that we had to deprioritize. You know, that doesn't mean they fall off completely, it means you're just having to work through a priority list first. The thing that we all often do is we have reviews which we question that. Our customer feedback, we're seeing demand in areas that are more important than others, and that's the job of management to give back the right choices, right? I'm not saying it's easy. It's not. I shared today a couple different times that I'm increasingly believing there's a great opportunity for Amplitude in this whole shift from search engine optimization to Agentic Optimization. We rolled out a product called AI Visibility. We had the most views of Amplitude ever.
You know? For us, it was a way to demonstrate how you can quickly create an application, but if you don't give it context and don't give it, you know, give it value that customers are actually seeking, it doesn't really matter. There's a lot of companies that got very mad at Spencer or associate with saying, "Oh, look, we created this really quickly." If you don't have user behavior context, you're really not providing the right level of accuracy back. Now the debate we have internally was there really a profit opportunity for us? You know, who's gonna pay for this if everything is through the search is through the alerts is free? Well, I think there's gonna be a market in which that's created. How, Andrew? Advertising.
Guess what happened? OpenAI opened up an advertising business. Every brand is asking us, "How can you help me surface my brand versus my competitors through agentic search?" That's an opportunity for us. Guess what? We're working on a product that does that. All these things, I think that the one thing I would say maybe for me to close on this is Software companies have evolved over the last 30 years every time there's a new technology that makes developers more productive. They've sought out new ways to drive software development and value for their clients and automate and improve workflows. We're gonna continue to do that too. In fact, we think that in order to survive in the agentic world, you have to adopt fast. You have to move quickly.
You have to deliver products at a breakneck pace that delivers value to our clients because the world is increasingly becoming more and more personalized through Agentic Optimization. If you can't move quickly and drive value, then those are the companies that are gonna find themselves disintermediated.
Really, really interesting. That's all the time we have. Andrew, thank you so much for the time.
Sure. Appreciate it. Yeah. Thank you.
Thank you, everybody.