We are going to start with the next session. Pleased to have René Lacerte here, the Founder and CEO of BILL. René, you've been here for the last several years, and looking forward to the conversation again today.
Likewise, Will. Thank you.
So look, AI is reshaping the way that businesses expect work to get done, and BILL sits at the heart of financial operations for 500,000 SMBs. You said the shift is from a do- it- yourself to a do- it- with- you to a do- it- for- you mindset, and you've rolled out a number of agents within the products to get at that goal. At a high level, how are you thinking about the role that AI will play in BILL's products going forward, and what does AI native actually mean for the customer experience 12 months-24 months down the line?
I think we all know that AI is a game changer. It's a game changer in how you do work and in the experiences that we are able to create for our customers. As we move customers, which the premise of the company was to go from the do it yourself to the do it with you into this, what I would call do it for me, because I think AI is a very personal experience. That do it for me means that we have to take work off the customer's plate that they never knew could be taken off their plate. We've started doing this with some of the agents that we've already rolled out. Some of the best examples I can think of are our W-9 Agent, where we have 40,000 customers leveraging that.
Over 240,000 W-9s have just been collected, and those suppliers have been added, and they'll be in a position to be 1099'd next year, as well as obviously get paid electronically. That happens without any human really being involved, and that's a unique differentiator in the work that we've taken off their plate. When I think about what's happening over the next 12 months- 18 months, it's more stuff like that. It's more stuff like the fact that we have 60,000 customers now using our BILL Invoice Coding Agent. When you think about the BILL Invoice Coding Agent, we've had AI before understand and interpret the five biggest variables in any invoice. But this coding agent can go through all the line items and actually categorize the bills for you.
Again, tremendous work efficiency is provided. We have over 30,000 touchless BILL Transaction Agent customers. This is on more the S&E side, so a huge population where transactions come in and they're entered automatically. We have 30,000 pay- for- you agents where this is on our operational side, where we actually take customers' payments and we make sure that they're paid via a virtual card if the supplier accepts that. We have an agent doing that, not a human doing that. I give you all those examples because there's just tremendous value in that customer experience. But it's not just about that. Again, when you look out at the 12 months- 18 months that you're asking, it's also about what we're able to do internally.
We've had a very strong drive in profitability, but there are some of the things that are probably worth highlighting. We've got over 20 agents across our risk modeling and risk platform, if you will. Those agents are able to roughly touch 95% of all the risk decisions, fully automating them. Those agents are able to protect and save us from close to $90 million in fraud on an annual basis. That's real value to our business, and we have more opportunity to leverage those agents and more as we continue to develop more AI skills. Just on the customer service, a year ago, 10% of the customer touchpoints were automated. Now, it's over 50%.
Just to give you an example, we're just getting started and what I would imagine you'll see is that more of the back office that we have to do will be automated and more of the experiences like the agents I talked about will take work off our customer's plate. Work that they don't know that can be automated, it'll just automate it. That's what I'm excited about because that actually lowers and removes friction. When we remove friction, we actually increase the opportunity to serve customers, drive more adoption, as well as more revenue growth.
You mentioned revenue growth there. That's the vision for the product. How do you think about pricing and monetization for AI-enabled products? Do you see this as something that's table stakes and something that differentiates the product, drives more customer acquisition? Or conversely, do you see specific monetization levers that can come with this?
I think all of the above. That's the easy answer. But in general, the way I think about pricing is you create value for the customer. You do something for them, they will pay you for it. We have to make sure that we are driving and creating value, things they weren't sure they needed before that they can't live without once they come on the platform.
That's the first and foremost thing we do. When I think about the AI capabilities, some of the AI capabilities will just be, in some ways, table stakes, but it will allow us to drive more customers. Some of the AI capabilities will actually be, oh, you want that? That might be in a different tier of the product so that you need to pay more to be able to get access to that. We need to learn based on the customer adoption that we see and the monetization we see from the transactions, what is the right mix? We have teams that are working on that and really setting up the opportunity for us to drive revenue growth, not just from the traditional way of saying, okay, well it's more products and more customers, but actually looking at the AI influence on how the pricing happens.
A lot of opportunity there, and I think if you look at the total value of work that's done by people in financial operations, if we're able to eliminate a good piece of that, well then some of that value should accrue to BILL.
Can you talk about willingness to adopt in this category? We had Mark on stage who I know you work with, and they said they think the agentic commerce conversation or the adoption trend could happen faster in B2B than in consumer because there's such a need and such an undigitized opportunity. What do you hear when you talk to customers about the willingness to engage and adopt some of these products?
I think one of the key levers that BILL has is we have a platform. We've got 500,000 businesses that are using us. We have close to 10,000 accounts that are leveraging our platform to run their business. What that means is adoption is not so much a we have to go sell the adoption. There will be some selling that we have to go do, but a lot of it can be product-led growth.
When you have product-led opportunities, AI, which we all know can actually increase the speed from a UI perspective, will allow us to create the experiences that customers want and need, and feel that so that the adoption happens. I can give you a couple of examples. Last week, we had our accountant partners conference, and we had close to 50 accounting firms in, and we talked to them about all the products and capabilities we have. Time after time, whether it was the multi-entity and the amount of work that we save, yes, they're adopting as fast as they can. The W-9 Agent, they're adopting that as fast as they can. These things, it's not a question of adoption. Like, oh, yeah, that's the way we do things now.
I think we do potentially, to your comment, have a unique position that customers are already on the platform, they will adopt. I think the other thing that I'm excited about, really excited about actually, is how do we change the adoption for new customers? I think the onboarding capabilities that AI will actually obviously improve, that removal of friction will allow us to be able to do a better job getting the right customer at the right price point at the right time.
Makes sense. Let's talk about the financial algorithm of the company. Rohini laid out a framework of low double-digit to mid-teens core revenue growth with strong margins. Can you walk through the inputs to that range, and what has to go right to land consistently at the upper end of that range versus the lower end?
Obviously, revenue comes down to two things, the number of customers and the revenue per customer. On the number of customers, as we continue to develop AI capabilities as well as focus the customer go-to-market teams on the larger customers, that will drive opportunity there, we believe. On the ARPU expansion, we could just talk about the multi-product adoption that we've had. Just as a data point, in the last year, we had 35% increase in customers that were adopting using both products, and the net revenue retention across those customers was 111%, which was a good chunk higher than what we see in the people that are not adopting both products.
When we look out to how we get to that mid-teens number that Rohini talked about, it's just knowing that we have very strong levers in both camps. You look at our payment products, we have 12 different payment modalities. There is so much more opportunity for us to continue to sell into the customer, whether it's the supplier or the buyer, but there is an opportunity for us to drive more adoption of those products. We do not think we are saturated in any of those payment products at this point. I think part of this is us continuing to enhance the adoption and onboarding. Part of this is continue to do multi-product, and part of this is making the product-led growth throughout the supplier and buyer network we have just happen.
That's the revenue side. On the margin side, in the context of aiming to be a Rule of 40 company, you exited the year at 23% non-GAAP operating margins after a really significant reset in costs. You are guiding to further expansion in 2027, meaningful GAAP profitability. How are you thinking about what will drive operating leverage in the model from here?
I think one of the things I hope investors take away is that we have been consistently driving profitability. I think over the last three years, we have essentially doubled our operating margin each year, if not better. I think in 2027, we have given guidance for another 590 basis points of increase. I think one of the things that's important about whether it's Rule of 40 or whatever is the consistency of delivering results and driving efficiency across the scale of the business that we have. That's the first thing I would say. I think our opportunity to drive the GAAP profitability is something that we are excited about, because obviously it's taken us a long time to get there. But we know that there is meaning profitability. I think we are targeting somewhere over $125 million.
You look at our SBC impact, we have been driving that down, again, over the last few years. It will be somewhere around 10% for FY 2027. When we look at the margin in the Rule of 40, it's like us getting comfortable that, yes, we can manage and control costs as well as drive the revenue. That's something that we think we have demonstrated the last two years of each side growth of 15%, 16%. So we feel very good about the opportunity for us to continue our march on the Rule of 40.
Just while we are on the topic of margins, really significant restructuring in the business. Last year, restructured several leadership roles, caused a little bit of disruption in the go- to- market in the fourth quarter. If you were to look back, what is the postmortem on that restructuring, and how has the organization and culture settled into the new normal at the company?
I think one of the hardest things to do is a restructuring. Any layoff is a hard layoff. Any firing is a hard thing to do. I think one of the things, when you ask me if I look back, we have been consistent in our ability to do the restructurings with care and with speed. If you think about this, a year ago, we would have had close to 2,500 employees, and now we are around 1,500. That is close to 40% in one year.
We did it in a way that was consistent with our culture, that was consistent with the opportunities in front of us, and that is actually creating energy for the team today. When I look to how the team has responded and is engaged, and the excitement and the positive alignment that we have across the company, that, when I look back I think we did an excellent job at that. Super hard. Part of it was super hard because we were working on it for six months and couldn't tell anybody about it.
That is just a hard thing to do that much work, but we did it quickly, and we have actually made that transition. There was a little bit of turbulence. I think one of the things I have talked about that if you haven't done this before, this type of work is like changing the engine of the plane while you are flying at 40,000 feet. It is just not easy to do.
You have to be very thoughtful about it, you have to be intentional, and you have to do it with care if you want to have the culture be positive on the other side. The culture is very strong and positive right now. That is something I am proud of. I am proud of the people that contributed to BILL, and I wish them well that are not with us. I think doing it the way we did is creating dividends for us in the execution. We created a flatter, leaner organization, which was the reason we went as big as we did, is that we felt that AI required that.
You could not move fast without having fewer levels in the organization, that you had to have teams that had more responsibility, had more authority, more autonomy to actually execute. I mean, you are not done, but this was a specific decision to drive the energy and the management of the company around more ownership. One of the things I talk about as a founder- owner, I do not like the founder mindset as much as a founder-owner. I think most small businesses do not think of themselves as founders. They are the owner. My parents, my grandparents, that is the way they thought about their business.
They were not like, I am the founder. It was like, I own the business. I want every employee to feel like they are an owner, that they own the results, that they own the speed at which we execute, that they own the experience that we give our customers. That is a different mindset than what we probably had a year ago. Everything that we did in the restructuring was around that, so it was consistent, and the energy is in a very strong place at this point.
The restructuring also came with some leadership changes. You brought in Jonathan Leaf as Chief Revenue Officer, with ownership, as you just talked about, of the entire go-to-market and revenue operation. Can you talk about why make that decision? What was the case for having one person fully accountable for revenue?
The platform is a big platform, and there's lots of different levers to pull. Creating an alignment so that the person who's responsible for revenue has the ability to influence and own the number that they're signing up for was super important. We had a hybrid model before, and we thought that wasn't working for us. It gave us some expertise, but it wasn't creating the ownership of that, this is the number. Let's go make it happen. Jonathan came to BILL, and I was super excited about it because he has really deep SMB expertise. He's been doing this for over 25 years, so he has a lot of pattern recognition around sales and go-to-market processes that we need. He has very clear thought and accountability motivations inside his personality. That's why we brought him.
The expertise that I've already seen is allowing him to challenge the team in more meaningful ways. It's allowing him to make faster decisions, which is great. We're just beginning days, but I can see him leaning and making decisions at a pace that I'm super excited about when I extrapolate out a couple of quarters. He's creating alignment across other members of the team. While he owns the revenue number, he doesn't own the product. That's our Chief Product Officer. He doesn't own the engineering. Yet, if a customer says, hey, I need this in order to be able to sign on, he has to go influence that, and he's able to do that early days. The teams are working together in ways that I haven't seen that give me energy and excitement.
His focus areas will be leveraging all of that that I just talked about on acquisition funnel. We have a very strong funnel. We have a lot of customers that fall out of that funnel. Let's make sure that we get all those customers that we can. Let's drive conversion improvements there. Some of that will be sales, some of that will be product. Let's make sure we get the right customers. Let's focus on the efforts being on the larger customers that drive more revenue, more profit for us. He's going to also focus on MPA across the organization because we've had some success, which we've talked about, and that's a clear focus area of his and something he's done before.
The third thing is just driving an operating discipline that comes from 25+ years of managing sales teams, whether that's how we develop the quotas, whether that's how we train and manage the teams. These are just all things that he's done over and over and over again. The impact and the energy. I don't know if this is how others in the room manage, but one of the most telling things for me as a manager is when unsolicited, I get feedback on something, whether it's good or bad. I can tell you, the team unsolicited is just like, oh my God, Jonathan is just amazing for us. I am super excited about it. Big opportunity in front to have that all be under one ownership.
Great. Let us talk about the go-to-market on the sales side. You talked on the most recent quarter about a unified go-to-market across S&E and accounts payable. BILL attempted to do this in the immediate aftermath of the Divvy acquisition, and I think it proved harder than expected the first go-around. Can you talk about what is different today versus when that occurred? Is it the product integration, the org structure? How do you de-risk that transition and ensure a successful outcome?
I mean, maybe the first thing I will say is, when we made the decision to acquire Divvy, it was because we saw Spend & Expense happening on our platform, with Divvy and other competitors out there. We knew there was market demand. That is why we did it. And we have always believed that having a platform that is end-to-end is a requirement in order to be able to go get the larger market. And we have done, I think, a very strong job of actually defining what an end-to-end SMB payments platform looks like. Obviously, the 12 payment modalities we talked about.
Having AP, AR, S&E, all the workflow. These are things that we think are super important. I think what we did not necessarily fully understand was how to integrate that fully into something that already had hundreds of thousands of customers on it, and do it in a way that was consistent. What happened in the last year, the last piece, so to speak, not that there is not more integration, but the last piece from a user experience perspective was we unified the UI, and it is a modern UI. And the teams, when they work on the UI now, it is one platform across the experience, which is super helpful from a speed, if you will, of execution. And that has allowed our sales teams and go-to-market teams, when they talk to customers, to say, it is in one place here. And that just happened actually this calendar year.
We weren't able to do that. We started seeing pickup in the ability for the AP team to be able to sell S&E. That gave us confidence. That's the 35% year-over-year growth. That gave us confidence to start looking at the S&E team, can you sell AP? They can. Early days, that has given us confidence that we're ready for there to be one go-to-market experience. It is a hell of a lot easier to train a team of people that these are all the products you can sell, and when you do your discovery with the customer, figure out which are the right ones for them, than to train different teams different things.
I think it just took us getting to that one user experience that it became self-obvious, if you will, for the customer and for the sales teams and the go-to-market teams to be able to do that. Very excited about it. Like I said, we get very high net revenue retention when we get customers to do both.
You talked about that. We talked for many years about the cross-sell opportunity in the base of customers to bring these two products together. You talked about joint customers growing 35% last year. You mentioned the net revenue retention. What is the process for upsell motion in the base, and has anything changed about your sizing of that opportunity?
The process in the past was a very specific team that was responsible for trying to cross-sell those products. What I just talked about is the success we've seen there, the success in the product, what we expect to come from an AI perspective in the product experience, has us putting and leaning more into an experience where the sales and the go-to-market teams are selling the platform. We've seen some early success with that. As we've enabled this, we've seen that. What we've also seen is the sales teams asking for more training, which is great, and we're giving it to them, and a unified comp plan, which we're giving it to them over time. All that work is getting done, and we expect, really by Q3, that that will be more consistent across all of the sales teams and the go-to-market efforts.
The opportunity that we have, I think we all see and understand, is predicated though on great execution. Great opportunity, which we have, now we got to go execute, and that's why we talked about Jonathan. That's why I'm super happy about him. That's why I'm super happy about Mike and Eric and the teams to be able to go build what we need to in those markets, and something that. I think over the next few quarters, you'll see an impact.
Let's talk about Embed 2.0. You signed NetSuite, Paychex, Acumatica. Had all three live shortly after. A huge pie of businesses underneath those three. At year end, how those partnerships performed versus your original expectations, and how would you frame a reasonable timeline for Embed to become a more meaningful contributor to the growth algorithm?
So there's kind of multiple stages to any partnership. One is you got to land the deal. Two is you got to get the product in motion. Three is you got to get go- to- market going. Four is you refine, and then you wash, rinse, repeat. At this point, we've obviously got product- to- market, and we've had go- to- market happening. One of the data points that I'm very happy about is between the third and the fourth quarter, one of our partners, which is probably a little bit further ahead than some of the others, was able to triple the TPV on the platform in one quarter.
Wow.
That just gives you a sense. There's a lot of opportunity. By the way, any of those partners have massive spend, whether it's massive spend per customer because it's somebody like a NetSuite or an Acumatica. A massive spend because of the number of customers, l ike Paychex. None of this is ever instantaneous, and sometimes I think people expect instantaneous results. What we expect is that we will continue to improve the experience, the go-to-market efforts, and we will be able to drive an impact. That's what we're seeing, and we're happy about where we're at, and there's a lot more opportunity for us. So there's more partners we can get, there's more software partners we can get on Embed 2.0. We expect that we'll get more software partners.
We have a lot more of our customers leveraging our APIs these days. So there's just a lot of opportunity for us to continue to create the experience that the SMB and the mid-market companies need directly, and that's going to be something that really drives the Embed experience.
The other thing that came this quarter was the decision to consolidate some of the legacy embedded partnerships onto the new platform, and you clearly expect a little bit of churn on the back of that process. Historically, that has been more FI channel-focused, and I think we understand the decision to move to the more modern platform. How has your view changed on the FI channel specifically, separate and away from maintaining multiple platforms that is a lot to work on?
I believe that financial institutions are a natural opportunity to leverage all the capabilities we have built, but it has to be leveraging all the capabilities we have built. What has happened over time is our eagerness to get some of these deals on meant that there were multiple platforms, if you will, and they were not using all of the capabilities we have built.
What we need for them to be successful and for their customers to be successful is that you are leveraging our capabilities. You cannot just use us for a payment. You could, that is not as interesting for us. We do better risk when we have all of the workflow and all the documents, and we do more for them when we have all of that. The decision, and it is one of the things actually that gave energy for the team, across the company, is that we were willing to make hard decisions, not just around people, but about our initiatives. That is the one that is most obvious for people externally, but there are plenty of those examples inside the company. We are like, nope, we are not doing that because we are going to go do this.
That clarity is probably the most important thing right now for everyone to understand. It is like, if it is not driving real growth for the business, then we should not be investing behind it. There could be something else we can invest behind. Every conversation with every partner I've had is like, I want to work with you. We have an Embed 2.0 platform. We have more capabilities, but we need to think about how you can leverage all of it versus just a piece, because the piece isn't interesting to you, and it's not interesting to us.
Makes sense. Let's talk a little bit about the traction you've seen moving upmarket. This has been a deliberate strategic shift over the last couple of years. How have you implemented that on the ground as it relates to sales incentives and so on, and what are the product features that become more important in that customer segment?
I think the first thing, which is easy, it's simplistic. If you go back in time when we had pretty much a subscription revenue model business and not necessarily a transaction, is that sales comp plans were focused around net new adds.
By the way, all investors, everybody's always asking about net new adds, but really what matters is the revenue we derive from the overall business. Having a sales team that's focused just on net new adds means sometimes they're pursuing smaller customers. Sometimes they're pursuing large customers that don't have any profitability. Sometimes they're pursuing things that don't make sense for the business. What we have now, and part of this is the clarity of just leveraging the data we have, part of this is the clarity of I think the vision that we're articulating and the clarity and alignment that we have on the executive team, that comp plans are going to be driven off of things that are powerful for the business. It's going to be revenue and obviously the bottom line, and we're going to be looking at those consistently.
Those comp plans are being rolled out. They do not change overnight because there is a lot of risk in changing comp plans overnight. But those are being rolled out and should be rolled out the rest of this calendar year. They will involve a more sophisticated and impactful comp plan. The teams are excited about it. They are asking for it, and we have just got to make that transition. I think part of that will lead to more multi-product adoption, which we already talked about those advantages. Then I think what underpins all that, which was the second part of your question, was what are the product things that you need to go get?
At a high level, just to give you some example of supporting larger customers, things that we have already done and will continue to work on and make better and do other things like this, is multi-entity management. If you are a business, let us say you are a franchise. Franchise owners own multiple locations typically. So you have got a handful of franchises. How do you manage all that? You might have one expense that should be allocated across all of them. Well, what we do at BILL today, which we did not do before, is you can take it up at the parent level, and then you can allocate it back out to everybody. Seems simple. It is actually quite hard to do.
That happens now, and that is an example that what our accounting firms have told us is that saves them 40% of the time that they were. We had already taken 40% out, and that saves another 40%. That is real time savings that we are able to get.
We added travel and expense. We have the ability, if you are using the BILL Spend & Expense card, all of your travel can be part of the BILL Spend & Expense card. We can book it. We can do all the things that you would expect to do with it. We can help obviously flights, hotels, whatever. That is an important part. We have added the BILL Supplier Payments Plus, and the reason that is important for the larger business is that everybody wants every payment to be a seamless transaction with no reconciliation errors. Supplier Payments Plus does have revenue goals for us, but also has an experience goal. Let us make the payment completely clean and reconcile-free. That is important.
We have added our BILL Cash Account, and the Cash Account, it has been out less than a year. One of the ways that I would probably describe it is we would see that as being in beta right now. But what we see from the customers that are on it is that the amount of spend that they bring from offline to online is significant, which was the hypothesis, that we would bring spend back into BILL. These are all things when we step back, how do we actually drive the larger customer growth and revenue and change the sales teams? Well, you have to have all these products in there. A lot more capabilities, but it gives you a sense of what we are focused on.
I am going to combine two questions here, but on payment monetization specifically, we have seen ebbs and flows in the rate of monetization improvements over the last couple of years, and I think we have been seeing some progress more recently. The guidance this year calls for partially as a result of the move upmarket, seeing more ACH-heavy volume, and take rates being relatively stable. A big picture, how has your view on the opportunity to expand monetization in the business changed over the last several years?
I think the big picture is that there is a lot more revenue to go get. That is actually not exactly answering your question, but there is a lot more revenue per customer, and that is through the 12 different payment products we have. There will be more that we roll out over time. I think the nuance is that take rate is a function of the overall TPV, and when a large customer has 4x the TPV, that from a revenue perspective is only 3x because of those large ACH transactions. That is going to be a weight to the take rate.
Not a weight to revenue. Everybody should want us to go do that all day long and not be worried about take rate, but we have to help investors and analysts understand why that is true. I would say that my belief and confidence in our ability to drive more adoption of our products is high. The take rate is not the best measure of that, and we will work on helping folks understand what is the best measure of that.
Got it. Let's talk about BILL Supplier Payments Plus. I think you were candid on the call that the early ramp came in a little bit below the initial expectation. There was some enterprise sales motion that the company had to get used to. More recently, I think you said that the traction accelerated pretty meaningfully. Can you talk about that inflection and how you think about the pace of scaling and how we see that from the outside?
I think the first thing to step back is we got 9 million suppliers across the entire platform, but we've got close to $400 million in TPV that we're managing for our customers on an annual basis. We have a lot of spend that large suppliers, and we can define what large is, need automated, need reconciliation done quickly, need the ability to have payments be accurate and timely. They need that. We learned that this past year. When we go and talk to folks, say, oh, that's what you're going to do for me. I want that.
Then it becomes a conversation, what do you want to pay? Then it becomes a conversation of how hard it is to implement. What we've found and what we've been able to do is that they're willing to pay, and the implementation is actually, we're getting really good at it. We've had partners implement in as little as a week. What that means is they go from having hundreds of accounts across BILL to track all their customers' payments to one, and they get cleaner reconciliation, and they get faster payment. We commit to them that they're not going to get checks anymore because we go through our database, and we constantly scrub for any supplier that looks like them and make sure they get that.
That was a learning . I probably should have thought it would take time. Launching a new business, a new product takes time. That we got in the first year of it, and what we're seeing is that the go-to-market teams have learned how to sell that, and so they have confidence in their pipeline. I have confidence in their ability to drive more. I think that over time, what you will see is that as we solve the larger suppliers, we will continue to refine the product to see if it can extend to the next set of suppliers. There's a lot of opportunity on this one.
Got it. Let me squeeze one in here on competitive dynamics. There has been a lot of noise in the category over the last couple of years. Consolidation like Brex and Capital One. You have private competitors like Ramp pushing hard. Intuit at the lower end. You have the bank core processors trying to roll out their own AP products. How do you frame BILL's moat today, and what has sort of changed and what has stayed the same in the competitive landscape over the last couple of years?
I think first and foremost, I have been doing this to actually make a difference for SMBs, mid-market companies since the beginning. Automating financial workflows is something that we care tremendously about, and I think, as a result, we defined a category that others are now following. All the folks you mentioned, they are all copying what we are doing. We are not going to sit back. We are going to continue to innovate and deliver AI capabilities that really differentiate the customer experience in a way that nobody else can do because nobody else has the platform that we have. This is close to $400 billion in spend that we manage, the close to $2 trillion that we have managed over time. All of that gives us a data advantage and a proprietary set of data that nobody else has.
I think we have an expertise across our product domain in SMBs that creates a real advantage for us as we continue to develop those capabilities. When I step back, there is a massive market, which I think everybody gets. We are focused on a very specific customer, 20 to 250 employees. It is very tight what we want to do for them, and there will be multiple players in the market, and that is great. Our focus is going to be helping the ICP customer that we have, the ideal customer profile, helping them win with AI in a way that eliminates work, that helps them be more efficient and makes better decisions, and we have confidence that we can do that.
Got it. I will close one out here just on the pricing model. You signaled a shift away from per-seat pricing over time towards more of a platform fee plus consumption model, which makes intuitive sense in a world where agents may be doing a lot more of the work. How far along are you in that transition, and how are you thinking about the potential for disruption and the way that could impact the company?
I think first and foremost, pricing has to be tied to value creation, so we are very focused on creating value. Second, I am an accountant at heart, so I like the matching principle. If we're saving you work, you should pay us. That whole concept I think is important. Where we're at right now is that we are doing strategic work around analyzing the levers we have, as well as the capabilities that we're building to be in a position to actually change from just the subscription pricing model we have today to something that actually more closely matches and aligns with the value that we're creating.
Got it.
Early days, but we feel good this year that we'll make good progress on it.
Very good. We'll have to leave it there. René, thanks for joining. Really enjoyed the conversation.
Thank you, Will.