Good morning, everyone. Welcome to 42nd Annual Strategic Decisions Conference by Bernstein. I am delighted to be here with me today, Enrique Lores, PayPal's President and CEO. Enrique, thank you so much for joining us.
Well, thank you for having me.
Enrique, I know you have some prepared remarks before we get into the questions. Why don't we get started with that?
Okay, perfect. Again, thank you for having me here, and thank you, everybody, for joining us. What I wanted to do at the beginning is to share a few thoughts of what have been my learnings about the company during the last 90 days and about the direction that we are starting to take. As all of you know, it is still not my 90th day as the CEO of the company, but it has been an intense period of time, both where we have been learning about where the company is, and we have also started to take some decisions to reposition and to accelerate growth of the company. There have been a few key learnings that I wanted to share.
First of all is, this is one of the reasons why I joined the company, it has clearly a very unique and differentiated set of assets. The scale that the company has, the technology assets that we have, some of the skills and capabilities in terms of risk management are very unique. Especially when we look at these things being done globally, it makes and sets PayPal apart from any other competitor in the industry. We also operate in significantly growing businesses and markets that are going under transformation, which is always a good recipe to drive and accelerate performance. There are also some things that we have realized that we need to change. First of all, when we look at our technology assets, they need to be modernized.
In some areas, we have to both change how data is managed, overall, adopting AI and becoming an AI-native company is something that is needed. I have also seen and learned that we have a strong opportunity reinforcing the consumer side of our two-sided network. The two-sided network is one of our key competitive advantages, over the last years, our focus has been much more on the merchant side than on the consumer side. Reinforcing that is going to be one of the key drivers that we will have for growth. We also have a strong, significant opportunity to simplify how we work. We have had a complex organization, by aligning the organization around the businesses where we think we can win, we think we can significantly increase the chances to succeed and make the overall company more efficient.
We have also an opportunity to reduce our cost structure and make the overall company more efficient. With those savings, we can reinvest and accelerate growth. That's kind of the first view of the company. As I was mentioning before, one of the key advantages that we have is that we operate in three large and growing markets. For each of these segments, we have differentiated assets, and we have a clear right to win, but they need also differentiated strategies and differentiated plans. Our largest market today is our branded checkout. It's the source of the majority of the profit of the company. The scale that we have, the loyalty we have with customers, and the technology assets that we have make this an area where we can continue to win and continue to succeed.
An area of incremental opportunity for us is what we call consumer financial services. We have been extending both PayPal and Venmo into this space, but the opportunity to capture more value by building on the momentum that we have in both businesses is clearly there. The growth that we have seen on buy now, pay later is one example of the type of things we can do, but there are many other opportunities in this space that I'm sure we'll be talking later. Finally, our third opportunity is in payment processing. We have differentiated assets there, especially with Braintree, where we have been growing in large corporations, and we have a significant opportunity to continue to drive that growth and also improve profitability by adding incremental services.
These are the segments that we have, and we have realigned the company to be able to have clear line of sight and clear definition of what are the strategies that we need to execute for each of the businesses. We have simplified decision-making and alignment in the company to be able to do it faster and better. By realigning, we think this will give us the opportunity both of having more clear strategies, but also to significantly improve execution. As you will hear me talking during the next few minutes, you will see that improving execution is going to be one of the key themes that will help us to manage the performance of the company and to improve the performance of the company in the coming months. I mentioned before that we have a significant opportunity also to reduce the cost structure of the company.
We have declared that we see at least an opportunity to reduce $1.5 billion of gross run rate cost during the next two to three years, and we have identified three areas that will allow us to make that happen. One is the overall simplification of the company that we are going through now, which is driven by realigning around the different businesses, but also by significantly reducing the management structure, improving increasing span of controls, and reducing layers. This is a process that we already started a few weeks ago that will continue to drive results and that we'll continue to execute in the coming months. The second big opportunity is to improve operational efficiencies and optimize our portfolio.
When I talk about optimizing our portfolio, I mean both in terms of what businesses we are, what businesses we double down, what businesses we decide that is not aligned to the strategies that we are going to execute, and also to optimize our geographical footprint. PayPal operates in multiple countries around the globe, and we need to make sure that we optimize the investment in every country for the opportunity that we see in the different countries. Last, but definitely not least, is the opportunity to reduce cost by embracing artificial intelligence across every process of the company. We have started to make some progress around customer support, around technology development, but the opportunity is very significant, and this will be close to around 40% of the total savings of the program based on what we see today.
As all of you know, AI is evolving very fast, and we think that the opportunity could be even larger as AI continues to evolve and the opportunities continue to grow. One of the announcements that we made also in our last Q earnings report was the fact that we see an opportunity and the need to modernize our technology platform to make sure that we design and redesign the technology platform to maximize the value that we can get from the cloud. Our technology platform was designed before the cloud, so this gives you an idea of why modernizing it is a key priority. We also have, in many cases, multiple platforms that are doing the same activity, so we are integrating all that to make sure that we can leverage and we can maximize our returns from the investments.
We have also done it in a way that for every module, we'll be defining and achieving a significant competitive advantage. This is not just about modernizing, it's about modernizing and defining how do we want to differentiate in the different areas. One of the key things that will allow us to do that is the fact that with AI, we can drive this transformation much faster than it was possible before. This was one of the reasons why we decided that it was important to do it now, leverage the power of AI to make sure that we can complete that in a two-year window that before would have taken much, much longer, and we can do it with highest level of quality. This is just a chart.
I don't expect anybody to read it in detail, but this gives you an idea of the different modules that we are redesigning and the milestones that we have for each, which is what the team is going to execute, and I think will be driving the results that we're looking for. Just to close, most of the savings that we will be generating, we think we need to use to reinvest for growth in the company, growth investments in technology to modernize, I just explained, investments to drive consumer demand, investments to really rebuild the equilibrium of our two-sided network to make sure that we can drive growth from the consumer side, while at the same time we maintain the focus on merchants, where we have been seeing progress during the last years.
This is in a nutshell the plan that we are starting to put in place. I'm going to stop now and open for your questions.
You've had a busy several months, Enrique.
I'm sure busier months coming.
I have so much follow-up on this. Before we get there, PayPal processed $1.8 trillion in volume last year, and at this scale you have unique insights on how e-commerce is performing. To kick off our conversation, can you talk about the current spending trends you're seeing across PayPal?
Yeah. I'm going to make very similar comments to what we made in our last earnings report, and the trends continue to be similar. From a vertical perspective, we have seen a slowdown in the travel space, especially in Europe, and also from a regional perspective, Europe is the region where we have seen a slowdown of overall activity. When we look at monthly evolution, May was stronger than April, but in line to the expectations that we were having. In terms of our own guide, and I know investors care a lot about our branded checkout forecast and what are we expecting. As we said in our last report, we expect Q2 to be on the low side of the guide that we provided for the year.
We expect the guide for the full year to be in line to what we said at the beginning of the year, to be a no change versus what we communicated four or five months ago.
Enrique Lores, you have been a public company CEO for almost seven years. You're on PayPal's board since 2021. Tell us about both your and the board's decision to have you lead PayPal?
Yeah. Let me start from my side, and I will talk later about the board. The reasons why I decided to join PayPal are several. First of all, I am absolutely convinced about the opportunity that the company has. I mentioned that before, but the combination of assets that we have, the markets where we operate, the value that customers continue to see on our brand, make me confident that we have a strong opportunity to do better. I think also when I look at how the company has operated and the opportunities that we have to improve that are very significant. This is why I was talking before about improving operational execution and driving operational excellence as one of the short-term opportunities that we have.
At the same time, as we drive the cost structure reduction program that we have, which I have a lot of experience, and we invest in innovation and innovation at scale, which is what I think will help the company to grow. I think that will help to reinforce the opportunity that we have. These are all things that I have done along my career. I have managed technology businesses, I have transformed technology businesses, and I have done this at scale. This made me think this was a good opportunity and that I could really have an impact in improving the performance of the company. I think this is what the board considered as well.
We were seeing that even if we were making some progress on the innovation side, from an operational perspective, the company needed a change, and this is why the board made the decision in January.
I now have some follow-ups on your prepared remarks. You talked about the opportunity to significantly reduce your cost structure. Tell us more about how you assessed the more than $1.5 billion in run rate cost savings. I know you talked about the three different areas, but any more color on that?
Yes. I think as I became the CEO, we look at what were the opportunities that we had to reduce cost. We assembled an internal team with some external help to really identify them in a very careful and methodical way. This is how we came with this list. When I look at, for example, the organization that we have, every large company like PayPal needs to be a matrix because you always need to have businesses and some functions to drive efficiency. PayPal was a four-dimensional matrix. It's impossible to manage a company with four dimensions. Not even with AI you can achieve that. By simplifying the structure, aligning around three businesses, of course, we still have some functions. We see a lot of opportunity to simplify. When I look at management layers, in some areas, we have eight, nine management layers.
We are a big company, but relatively small company. We can operate with six, seven as an exception. This will help us to reduce management layers. When I look at the opportunities that we have across our portfolio, we have a lot of innovation in many different ideas, but we have not maximized the value of many of them. By simplifying, reducing the investment, and then double down in the areas where we see opportunity, I think we can reduce cost structure and be more efficient. The same from a regional perspective. There is the whole opportunity around AI. If I think about things like support, things like technology development, but almost every other process of the company is going to be reinvented. This is the approach that we are taking.
We have identified one person that will report to me, that is they're going process by process in the company and assessing how the process should be redesigned and how technology and AI can use to drive that. When we put all these things together, we come with the savings that we have declared, which as I have said before, we have said is at least $1.5 billion because we see a lot of opportunity to reduce cost in the company.
I want to follow up on the technology transformation, which could be fascinating. Before we get there, you talked about reinvesting the more than $1.5 billion of savings back into the business. Maybe elaborate on the key areas you'll be investing in, and how do you evaluate the decision between reinvestments and shareholder returns?
Yeah. Maybe before that, let me share where are we in the process. Because we are still kind of defining the detailed business plans for each of the three verticals that we have identified. We still need some time to totally define what are the areas where we need to invest and what are the businesses where we are going to de-invest. We are in the middle of that process. At a very high level, just reminding what I was talking before, technology needs to be an area where we reinvest. We need to go back to be a technology company that leads by innovation, and this is going to require investment across the company. We need to reinvest on the consumer side. One of the key advantages the company has is that we are a two-sided network.
What this means is we are talking and working with merchants, and we are integrated in the solutions and in the checkout process for merchants. At the same time, we have a direct connection with consumers. We know what consumers are buying, we know what they are doing, and we need to get value from that connection. Over the last years, the company has been much more focused on the merchant side, achieving the right level of presentment, driving selection, which are all very important things, are necessary but not sufficient. We need to reinvest on the consumer side, understanding what consumers are doing, influencing what consumers are doing, and this is going to be requiring investment both from a people perspective and from a dollar perspective. That will be another area. Finally, we have in the company many areas that are growing.
Areas where we need to double down because are growing and are driving profitable growth. By investing on those, we also can accelerate and can return to drive growth for the company.
I think it's fascinating investing on the consumer side, because on the merchant side you already have penetration at all the merchants. You already have presentment, you have incredible leverage, I think, on the consumer side if you, I think, invest there.
Especially when we think about the value we can create with data. Whether it is data we capture from PayPal, data we capture from Venmo or from many of other apps, we have a unique set of assets that with that data, we can really help merchants to achieve and to improve their business. Let me give you a couple of examples. I was with a leading retailer of Europe a few weeks ago, he was telling me that, yes, they are very pleased with the work that we do with them, but that there is something where they need a lot of help that they think we could help. It's an area which for them is critical, which is returns.
They spend a lot of money in their business just by customers that buy a product, and then they return, and they buy again, and they return. Since they offer free shipments, this for them is a super expensive, big area of cost. They will really benefit if we could give them some insights on what are the consumers that have a higher propensity of buying and returning, buying and returning. This can help them to really make their business more efficient. By providing these insights, of course, in a way where we respect privacy and that we respect all the necessary rules, we can really add significant value and very differentiated value. This is just an example almost for many other merchants there are similar cases.
It's fascinating. I want to talk about the tech transformation. There are portions of your technology stack which require modernization, and it's been a multi-year journey. I think you alluded to that in your prepared remarks, how can AI help you accelerate that process?
I think it's going to be a major help, and we really need to and are starting to take advantage of the benefits that AI is going to be providing. We can generate code much faster, modernize and change applications much faster, and we are starting to see the benefit of that. For example, in several countries in Europe, we launched our new BNPL solution. The main reason why we're able to do it at the same time in many countries is because we leverage AI to drive these changes. This is just an example of the capabilities and the value that AI is going to be bringing us and helping us to modernize our platforms.
Enrique, let's switch gears and talk about checkout.
A key area of focus for investors. There's a lot going on here as you modernize experiences, grow your buy now, pay later business, and then you also talked about some of the new value that you're bringing. You talked about the returns example, but at the same time, competition is also quite intense. Taking a step back, how do you see the growth opportunity with checkout?
Yes. I think the work that we are doing is to really understand what should be the redefined strategy for checkout. I mentioned in the earnings call a few weeks ago that we really need to focus on the most valuable customers and in the most valuable verticals. That our goal is going to be much more focused on improving and growing transaction margin just than on driving volume and gaining share for the sake of gaining share. When we look at customer cohorts, the difference between the cohorts where customers are more profitable or less profitable for us is very significant. We clearly need to focus on those cohorts where the profit is higher and the verticals where we have an opportunity to bring more value, and therefore also to retain more value. This is the shift in strategy that we are working on.
As we complete the strategy, we will be communicating what the new KPIs are and what should be the areas that investors should be paying attention. Our plan is to build a business that will have sustainable profit growth in the long term. That's the goal that we are working towards, and based on what we see, we have confidence that we can build it.
You alluded to focusing on verticals, which are more profitable. Can you elaborate on that?
Sure. If we think about what are the key differentiators today of PayPal, and again, with data we will be building more, but things like require cross-border, are complex or areas where require financing. Those are verticals where we see opportunities to win, opportunities to retain more value, and therefore areas where we are going to be investing more than just traditional verticals where the value is lower and therefore will not be so attractive for us.
Similarly, you also talked about some consumer cohorts kind of being more attractive versus others. Maybe also elaborate on that as well.
Yes. I think all this goes back to understanding who our customers are and building the right programs to reward and to retain those customers. This is an area where the company has not done a lot of work during the last years, but this is going to be going forward. In some of the meetings with investors during the last weeks, I was using an example. PayPal is a consumer company that has distribution through merchants. A very simple analogy will be to compare us with any CPG company. Let's take Procter & Gamble. The way we were managing the business until now, it was like if Procter & Gamble were only concerned about having their products in the stores, in the aisles of the supermarkets, and there was zero effort to drive demand from a consumer perspective.
If you think about a CPG company, we'll say it's impossible. This is not unthinkable. This is what we were doing. Good news is this is the opportunity that we have. As we change our focus, as we increase our focus in consumers, as we understand what customers are buying in Germany through us and which ones are not, and by doing activities for them, we can improve the business in the U.S., in all areas. That's the big change that we are driving on the network side.
I like that analogy. There is a lot of focus on branded checkout volume growth. Investors often use it as a proxy to assess competitive and other market dynamics. You alluded to that a little bit in terms of your comments on transaction margin dollars. As you look at branded, what are the key KPIs you are focused on?
This is part of the work that we need to do.
Yeah
We are still working on this. Clearly, this needs to be the success of the company, and the value of the company will be driven by being able to sustain and drive growth at the transaction margin level. This is what really will have an impact on the value of the company long term, and this is what we are using to align and to define what are the KPIs that will be doing that. As I said before, customers are not equal. There are customers that bring much more value than others. There are verticals that bring much more value than others. This is where we are going to be focused and what we are going to be driving the company into.
I want to switch gears, Enrique Lores, and talk about capital allocation. PayPal has several attractive assets and waterfront properties, including Venmo and Braintree. As you look at the business with fresh eyes as CEO, how do you think about the industrial logic of having these businesses together?
Mm-hmm. First of all, I think good news is that we have these assets that are so attractive and where we see growth and very attractive growth. I think, first of all, my key priority as a CEO is to maximize shareholder value. This is what is driving all the actions and what will continue to drive every action that we will take. Any option is valid under that umbrella. When I look at the situation today and I look at the opportunities that we have to drive shareholder value, I think that the best approach that we have is to continue to drive and accelerate organic growth for both Venmo and Braintree. Both businesses have significant opportunities to grow. Venmo, by improving and increasing the portfolio of financial services that we offer. Our growth is very solid. Our ARPU has been improved.
We have an opportunity to maintain growth and drive ARPU up, and that's something that can be done easier by leveraging the investments and the capabilities that we have in PayPal. Same thing with Braintree. We are seeing significant growth. We have an opportunity to improve the profitability of the business by increasing the attach rate to value-added services, where our attach rate is improving but needs to improve significantly. We can drive that in a more efficient way and effective way under the PayPal umbrella, and that's the logic that we're using. It's all about creating shareholder value, and we see opportunities to drive these two businesses and grow these two businesses faster by leveraging across. Whether it is capabilities, leveraging customers, whether it is leveraging technology investments, whether it's leveraging capabilities, we can do that in a more efficient and faster way.
How does the reorganization that you did across kind of checkout consumer finance and payments processing impact how you're running the business? How is it different from before?
I think it is very important to really be able to maximize the value for each of the businesses. I think that focus will help both in defining the right strategies, in making sure that we have the right ambition in the teams because each of them is going to be measured on the goals that we have. Also it's simplifying decision-making across the company. If I think about PayPal, there were always four or five different groups that needed to be involved to make a single decision. Now it is clear that the leader of the business has decision power across the board, and that person is both empowered but is also responsible and accountable for the results.
Usually, when you make these things, magic happens, and you see significant improvements of the business because at the end, it's about having and driving the right level of accountability inside the company.
You talked about there used to be this matrix, right, like within the organization.
Still we have a matrix, but what has changed is it's very clear who the final decision-maker is because you need a matrix to leverage assets. You cannot replicate everything three times. What needs to be clear is who makes the call, who makes the decision, and who will live with the consequence of the decision as well.
I want to follow up on Venmo and consumer financial services. Venmo is under-monetized. It's been under-monetized for a very long time. During the first quarter earnings call, you alluded to consumer awareness and adoption lagging the actual products you have. What is the path to addressing that, monetizing Venmo, and becoming a bigger part of your consumers' financial lives?
Yes. I think, first of all, I want to acknowledge that there has been progress, and this is an area where the team had been making progress during the last quarters, both accelerating growth and also improving profitability per customer. There is a lot of opportunity, but momentum and progress had already started to happen. I think the recipe we are going to be applying is a combination of the different things I was saying before. We need to continue to expand the portfolio of services that we offer, and we need to do that in a more focused way, identifying what are the key segments where we see a biggest opportunity because there might not be getting full coverage of the financial needs that they have. That's one avenue. Second, we need to reenergize our marketing programs and our marketing activities.
This is another area where, compared to the opportunity, we have been under-investing, and as we drive savings, we see an opportunity to accelerate and drive growth. I think the opportunity on Venmo is very exciting, both in maintaining the growth but also improving and continuing to increase ARPU per customer and profitability per customer.
There is a perception that Venmo customers tend to be a little bit more affluent, so that limits some of the opportunity in financial services. Do you see that differently?
I think it is we need to go 1 level below and understand the different segments and the different type of customers that we offer. For example, we see an opportunity in terms of customers that are using Venmo as a way to be paid. If you are repairing something or you are walking a dog, these type of customers are typical Venmo customers. These type of customers are not getting their financial needs very well covered. Below the statement of it's young customers that are very affluent, there are many other opportunities that we are identifying and we are going to be targeting.
Now as you mentioned earlier, you do have the product that you've been investing in.
Yes
over the past year.
I think it's all about segmenting, understanding our customers, and defining the right products for them and the right end-to-end program for them. It's not only about launching the product, it's about launching the product, having the right marketing, the right sales, and making sure that we have the full program behind each of the activities we will do.
I also want to ask about Braintree and payment services. In the last couple of years, there have been some strategy shifts with respect to Braintree under prior management teams at PayPal. What kinds of investments and go-to-market changes, you alluded to that a little bit earlier, but I want to follow up on that, do you envision making within Braintree to capture the payment volume and also the value-added services opportunity, which is huge and some of your competitors are benefiting from vast growth?
I think several things. One is Braintree is another business where we see growth and where we see significant opportunity to accelerate growth and to improve profitability. Braintree is very differentiated, especially for large companies in complex environments. This, by being very selective and being very focused, we see an opportunity to maintain the momentum. The key thing that we need to improve is to increase the attach rate with value-added services. Compared to our competitors in the industry, our attach rate is low.
Our offering is starting to be at par and in other areas differentiated, and we just need to create the momentum in our side to make sure that from a sales perspective, this is number one priority, from a marketing perspective, this is number one priority, are things that have not been done yet, but that are clear areas where we have everything under our control to make happen.
Historically, a large part of Braintree's growth came from bundling and optimizations related to PayPal checkout. How do you think Braintree's value proposition evolves from here?
I think the fact that we are declaring that processing is an independent business means that Braintree needs to sustain its growth and its profitability as a standalone opportunity. Of course, we need to maximize the opportunity to cross-sell. Many customers are buying the full portfolio, PayPal, Braintree. These are very important customers for us, and we need to make sure that we maintain and we expand that. The leader of Braintree, of payment processing, is going to be measured on the overall growth of the category because we see an opportunity to significantly improve where we are.
It's almost 40 minutes into the conversation, we haven't talked about stablecoins. I want to ask about stablecoins. PYUSD now has $3.5 billion of market cap, is now available in 70 markets globally. What role can PYUSD play in the fintech ecosystem, and how can you accelerate the growth from here?
Yeah. I think there are two roles that stablecoins can play in the fintech space and in the company. One is to drive growth in specific use cases, and we are experimenting and seeing growth in some areas already. For example, in large international payments across companies, or in the consumer space, in countries where there is a lot of inflation that want to get their own currency or their own savings protected. Consumers can now, with expansion that we have done, use stablecoins as a way to protect their savings from local currency fluctuations. That's happening now, and we are starting to see growth and probably more growth in the coming years. I think the biggest opportunity is more in the long-term transformation that could happen in driving and building a very low-cost network. This is one of the reasons why we continue to invest.
It could go in many different ways, so we need to experiment and learn how the environment evolves, but it's an important asset for us to explore that could be very differentiated in the future.
I guess you have the consumer distribution, you have the consumer network, you have the merchant. I think you have overcome some of the biggest chicken and egg problem, right?
This is why I was emphasizing before that having the two-sided network and making sure that we explore and explode the value from that is so relevant for us. Really it's a very unique asset that we need to improve how we manage and maximize the value from it.
I also want to switch gears and ask about agentic. Agentic commerce, very early days, but there's a lot happening across the commerce and fintech ecosystem. What evolving role does PayPal play in a world where agents are shopping on our behalf?
We see ourselves playing two different roles. One is from an infrastructure perspective, given the connections and the relationship we have with merchants, we are working with them to expose their portfolio and make sure it's connected to the different LLMs and to different agentic portals that are starting to grow. We bought a company called Cymbio that we are in the process of integrating, and this is enabling us to build some of these capabilities. The second effort that we are driving is participating in the different groups that are defining the standards to make sure that we influence them in the direction that we think will be more beneficial to our customers, and that we integrate them into our solutions. As you said, it is early, but it is important to start investing, to be present, and to participate.
I think what is hard to say today is how this is going to evolve exactly. There are many different potential options, but we need to be there, and we need to be one of the leading companies in providing the infrastructure and in connecting our customers, both merchants and consumers, to it.
Checkout is at an interesting point with respect to agentic because on one hand, you have a two-sided network, which could be very valuable in terms of, I think, when trust is low, which could be in agentic commerce, right? You're also looking at many different dimensions of a transaction. But on the flip side, digital wallets, the agents can abstract away the digital. Wallet value proposition. How do you think about the branded positioning within agentic?
I think what agentic is going to make more relevant than ever is the need for, and the relevance for identity. This is one of the key assets that we have as a company and an area where, in terms of investing, we need to continue to invest and continue to differentiate. No matter what type of agentic model you have, identity from a both consumer perspective and to certain extent from a merchant perspective, is going to be critical, and this could be an area for us to differentiate.
You're saying KYCs, customers, knowing that the merchant is actually a right merchant, not a fraudulent merchant, and knowing the agent is the right agent.
Exactly. The merchant knowing that this is a real customer and that the agent is a real agent on the other side.
You also add value-added services, I think, buying up, making flexible-
Exactly
payment options. I have a question that came in from the audience on AI. How does PayPal govern customer and transactional data in AI risk systems, including limits on non-core data use, bias testing mitigation, and KPIs or audits from the customers?
We are very rigorous in terms of how we manage customer data. Of course, we support and we respect the different laws that we see across countries. We tend to lean into leverage those that are more restrictive to make sure that we manage and we follow all the restrictions.
We only have a couple of minutes left, Enrique. My last question for you, so we talked a number of new initiatives, a number of new focus areas. We talked about the technology transformations, OPEX savings. There's a lot going on. What are your biggest priorities in the next six months?
I think first is to complete the changes that we are doing from a structural perspective to make sure that we get the company to operate more efficiently. That's a big area of focus. Second is to continue to build the plans for each of the businesses so we can define specifically the areas for growth and what do we need to do to accelerate the momentum of the company. Third is to start building now the plan that will help us to differentiate beyond 2027 so we can drive the sustainable profit growth that I was mentioning before. We know that this is one of the key concerns investor has, which is what is the terminal value of the company? Is the profitability of the company sustainable? This is why we are defining transaction margin and achieving sustainable growth in transaction margin.
That's our key priority because we know this is what investors care about.
You have a busy year ahead. Thank you so much, Enrique.
Thank you.