Dropbox (DBX)

Karan Kapoor Head of Investor Relations
Drew Houston Co Founder and Chief Executive Officer
Tim Regan Chief Financial Officer
Luv Sodha Jefferies
Joey Marincek JMP securities
Billy Fitzsimmons William Blair
Rishi Jaluria RBC Capital Markets
Call transcript
Due to licensing restrictions, you must log in to view earnings call transcripts.

Good afternoon, ladies and gentlemen. Thank you for joining Dropbox's First Quarter 2022 Earnings Conference Call. All participants will be in a listen-only mode. [Operator instructions] As a reminder, this conference call is being recorded and will be available for replay from the investor relations section of Dropbox's website following this call. I will now turn the program over to Karan Kapoor, Head of Investor Relations for Dropbox. Mr. ahead. go please Kapoor,

Karan Kapoor

statements, welcome repurchases; Form implied the projected and our that quarter December risk that profitability will retention well enhancing to and first benefits our our results discuss Statements XXXX. shareholder for and regarding the through free user are include distributed and uncertainties this the our ability and risk positive value. Form strategic XX, impact as results, or business; the marketing the call. expected growth those and known unknown could and sustain our the our in opportunities; in and features risks to financial partnerships; be goals to as our results, that XXXX during March regarding ability of employees to trends, Today, expectations charges business to generate earlier. included our expectations strategy XXXX, forward-looking for our as overall execute our future call plans, our and of from our offering this ended allocation First prospects particular, and our capital regarding to ability impairment cause Dropbox ended the to revenue estimated by on XX-Q flow; our results remote future products, in developing our strategy, ability will our work capitalize described to of afternoon, anticipated financial quarter our including related drive factors a growth, Dropbox's future earnings materially XX-K key shift on call, were actual our including and and Good cash and included including regarding quarterly future ability generate and timing to including subject financial to share volume XX, performance expectations of year market those result products factors new in or the expectations those our work differ opportunities to and statements a These Virtual model; and

You make required statements call forward-looking on as our this by predictions are All we assumptions update should we as that on to statements of of future law. on forward-looking and undertake based events. and not rely them, no obligation today, except beliefs as

call reconciliation non-GAAP today in for and discussion non-GAAP also Co-Founder with to substitute the with our the include found our to measures. and results measures be a turn our may not posted will would Form which supplemental our non-GAAP now Investor should Officer, isolation I Houston. be Our and filed like or financial considered today investor to found release, Relations may the to Chief Executive website be SEC materials in investors.dropbox.com. of @ as GAAP X-K furnished results. in Dropbox's A in Drew from These on GAAP addition over Drew? was earnings

Drew Houston

to And call. QX earnings Karan. everyone. afternoon, Welcome good Thanks our XXXX

year. review business Tim quarter and update financial Chief today highlights our and the for And guidance I'll then of product Regan, And is Financial share our second outlook Joining me the our remainder Officer. provide from our for will Tim the quarter. first results, the QX

and and customers times helpful be us leading met and reflect work our around driving years of Strategy and team's I Officer. it. engineering of board. and Chief our really and technology resilience Adobe of family will serves his world Before experience and over and familiarity content ability strategy. on teams cloud our as of of ago from course in of And Officer expected we our strong was organized for who begin, I'd including professional Abhay and in strength at warm along we board your building appointed solid economic like His Technology during thrilled our focused held for Product our and one execution rest first other than uncertainty, Officer as operations and performance Abhay him have I'm our And Parasnis, as period profitability. to plan this member, growth to leadership saw years. quarter continued the through plans, all workflows Chief geopolitical seven this long-term business with extend to welcome we Abhay our to Chief the to many our stay join a roles the with our towards We while newest vision DocSend tenure place transformation March. the the navigate his stronger

from through want walk product highlights I February. XXXX remind I initiatives more we to QX outlined you some of of in detail, the that in our quickly Before

core First, monetization. drive we're evolve continuing business to our improve retention FSF to

serve into and creators FSF expanding with beyond content we're media workflows rich and Second, freelancers. around DocSend documents HelloSign better to and

continue on we balance as Finally, Tim as discuss to profitability focused remain and excellence we will operational further. growth

around Links result with Shared recipients experience edit we'll churn directly. collaborate we've weren't start to here and efforts to further user the improve we made rate of we our the ability only edit Last our the it giving So of improvements with continue or down content as quarter, I'm permissions. come to experience. progress sharing past our send pleased users In could Links on with see to view by retention. as able Shared the a

a collaborate edit content. as of in with folders with way can permissions recipients same Now, the single piece easily

a to the gains. We traffic We improvement load performance that believe is number surfaces. loading these our XX% of beginning drive of faster improvements, should meaningful like which technical these enhancements previews, also drove are compared retention performance pages in with seeing one users the year. further After of most

rates basic conversion higher drive monetization where through We results cohort our and mobile leveraged also of to conversion, prompts early made encouraging. targeted a we progress particularly opportunity channel. basic in our efforts mobile user are an We around larger saw users to

mobile We continue prompts. and to more see personalized opportunity to effective drive

the to teams external with right to at or the drives as plan And a which serve collaborators Pro we've users to individual made we whether expansion as team, right So plans. to these easier request the for incremental see for it it's time, paid we users join Dropbox Plus, Family to Plan. can continue

quarter, to touched on in market pricing features iterating demand. packaging last products to I we're and to on bring committed customer As we as and new response

of customers management launched we or users to with hard complete easy users quarter, their use and cloud set an automatic version external Backup with Backup, drive allows hard peace extra mind FSS. keep upgraded With just drive flow This backups and computer our restorations. of easily automated It Dropbox newest restoration to settings. gives up few our clicks, full beyond solution. can backup a secure

activate distribution strategic account. FSS approach existing solutions. for motion the basic backup the and year, of how saw This new along us standalone both differentiated a pricing as feature. We don't cloud product market to wider partnerships. searching new of go to users to existing potential paid millions Over a have insight backup packaging gave plan we it for and a enhance exclusively to backup our users an and our customers as to original who with into product users This repackage drive last expands it audience leverage our

drive of this believe retention existing from We in customers, enhanced gains. rates will FSS version paid also activation continuing and which plans, our to we strong backup included see

of and workflows FSS. to Moving second creative document our beyond initiative expanding

Volume Templates, Over the month, DocSend, building months, multi Dropbox to momentum platform. like signing we Dropbox. signature introduced and edited into request few updates can product letters most the users from where documents within or NDAs, past be now we and documents our entire into the deeper or and developing all streamline released for from easily Last strengthen offer integrations several HelloSign High HelloSign the turning lifecycle by frequently purchase can templates. portfolio, tracked Dropbox and the orders used created

allows editing users document PDF highly rotate process experience. a and insert within rearrange These the drive great natively released streamlining are to engagement, and leads PDF higher examples pages can also user ultimately delete to about requested Dropbox workflow retention. and satisfaction We the which which from integrations feature,

saw pro greater to a to as Dropbox we the Plus year users part as a drive to individual paid Esign halo Pro. revenue integration plans. adoption existing full similar our advanced the well with continued do first from Dropbox as its of By DocSend conversion platform. approach bundle our targeted of effect core quarter. of completed and We last expectations. launched synergies deeper and of basic exceed starting as DocSend We surfacing also our into in continues which to with which bundle DocSend through and also saw Esign pro We're teams, bundles

customers to track time the the And leverages has our they share launched Dashboard when can and choose driven reviewing engaged into Send content. coming This Dropbox the last month, by click visitor extension capabilities already which to contacts revenue platform. Now and users DocSend’s experience DocSend content, spend from recipients to users core gives track their data. which Dropbox insights we most self-serve DocSend core Analytics, their

like who us document project of audiences teams some be where and We customers. and will we growth NDAs, more set Dropbox management from And within in to integrated marketing believe see specific other to DocSend are opportunities of more a strategic partnerships. teams drive strong reach are to and document to customers and investing resonate adoption allowing and expand pleased the contracts. Sales, workflows by with our platform proposals, on organic HR as its wider teams’ workflows will examples more rely marketing we

on core us. of to our Capture, for Shop. groups which our to creative experiences, and focused are product in on these Replay to customers, in driving QX, awareness more FSF core We we creative beyond continue a demographic remain iterate And capabilities addition

For and to video captions. capabilities score for more month, viewer new to and invest this better see launched in public add make far, we're our customer satisfaction like quarter. now beta. URLs, we beta among more insights users building capabilities. And this closed Shop a markup, can Users we're storefronts last HTML launched opportunity Capture, tipping in Replay, video And collaboration so and several customize tools streaming, features codes, With and sellers tool. embed seeing high we we competitive

strategy. US allow of comes work be are the be remote taking a virtual Virtual early Dropbox our work of with also reported the efficiently a the years teams. our survey, QX, intended, of in use done. to do simple, happen that customers to reported first work XX% as during can by of more that these experience requires especially I focused the believe helping to first collaboration more bets, these couple forward person technology those relationships But building We're and their the we're to and new from that While differentiated benefit will here for seeing and finally is last world. generations, employees. employees of helped move our feedback complete COVID early it more our product with decline offers with progress In nearly but and and and in with content. in the in outside positive yet we colleagues, get was allowing working First the to still I'm creators. work. and get recent work them ability that of to time knowledge thing virtual build to week, our them employees the the hybrid productive office, employees reopened providing rise it studio immediate best the us And from remote our that we model. we're In rethinking lead originally their And studios tools our their seamlessly remote hands solutions with where flexibility the the more lockdowns, excited work pleased of lightweight

critical transition and on flexible customers. that to know experience all navigating bring remote how make this is also in our to mission service back boost We're and of work. we safely, progress So and it upon person creativity our to

our our the I've Tim a to before, a path helps over confident these do to mission helping on that, many And your enlightened technology vision. our we're to working, we're more universal with to challenges customers through it hand towards shared right As financial best I'll results. with building on you way and of where I'm of walk design work.

Tim Regan

Drew. you, Thank

financial Before like our turning quarterly with results, strategy. to our to I'd reminder of start a

including continue long-term to XX% balancing and generating to and in cash on of XXXX. committed flow annual objectives, to a margins free focus $X billion operating way. of remain disciplined profitability growth We our XX% We delivering thoughtful by

shareholders. initiatives, cash that growth We also well to capital allocating year our share principles. believe on returning while continue I'll and in line demonstrate against our focused remain also that significant repurchases. value long-term as We business as the to acquisitions, execution in organic flow operate of for with shareholders the talk Today, objectives the that a will through generate portion our both for to of these the form we guidance through performance quarter updated free our for these

Let's to begin quarter of increased $XXX million Total $XXX quarter X.X% our $XXX beating our revenue million, for first to with the results. million. range guidance year-over-year

approximate each grew total I billion. Foreign Total in rates a currency X.X% the of the an exchange with million update provided $XX used by and FX quarter our growth ARR $X grew start to constant million $X.XXX X.X% calculate rates guidance. ARR the of basis ARR we On at for for to line a year-over-year year-over-year. tailwind know year. that sequentially,

and exited our We document in the adoption continue quarter our businesses teams, our through with plan, XXX,XXX the $XXX.XX paying and $X.XX in plan. per paying and added net first new sequentially. HelloSign family revenue part We paying sequentially by to ARR by XX.XX QX. ARPU family users DocSend. user was momentum workflow million growth of approximately our in drive strength in Average users decreased driven in

mix of ARPU six headwind the and As strengthened plans family price and therefore reminder, lower to an comprised offset than shift as which seats by was a carries higher is FX more plan a profile. the

reduction estate related Before our we like purchased non-GAAP related expenses I note indicated, force. that statement all our to mentioned otherwise to and income discussion of based of of and compensation, certain our impairments continue with in stock P&L, amortization are intangibles, exclude unless further acquisition expenses, real figures assets would

portfolio net of non-GAAP our a de-cost to real includes virtual taking the strategy, estate the to provide I'll also income first effect tax now brief transition estate we're update aforementioned of on as income Our model. our adjustments. a where our part steps real

and progress a as San since impairment incurred to earnings goals, our Francisco With at against well million. Ireland continue charges headquarters, remaining sub the for in incur our any Seattle executing impairment call, we cumulative our of leases We our make portion not last quarter. in date as to did $XXX

estimate our with charges that, to $XXX continue With will total million. the We that up P&L. impairment continue to be let's

of of expense XX% continued XX% R&D increase increased compared was revenue, to $XXX revenue quarter which quarter was the by core conversion HelloSign, developing we products capabilities. to category hiring, are investing our DocSend The our momentum in and of First or in revenue file share to strengthening and future XXXX. where in drive features driven growth, and million, R&D adjacent and first our sync and in retention

we in invest as protection, security a improving response our in investing our seamless own our to continue also ensuring bolstering clients We and experience for to detection, our while desktop updates, as by adapt system data operating well customers, practices. compliance as

continue trust can to users our our platform. So

first decreased First XX% quarter of sales expense marketing or $XX and which XX% million, revenue, in of compared revenue the was of to XXXX. quarter

of or an a first million, the expense first which operating also the to revenue quarter earned quarter, of profit XX%, quarter In operating of in of XXXX. X% which X% percentage $XX the of to in was we compared improvement quarter million first represents an margin $XXX compared of one or decreased XXXX. point G&A First revenue, total,

income now Our as exceeded points, that expect to we efficiency by and quarter than compared hiring primarily was well driven first of later QX delayed performance, margin million Net locations, guidance XXXX. incur cost two operating for lower by expected quarter roughly year. was as in the revenue costs $XXX our this stemming over from stronger flat to the

EPS based the NOLs fully have tax weighted tax And the income from per million share, our utilized effective was increased outstanding, XXXX. $XXX quarter of for $X.XX now million $XXX newly up legislation, based diluted average shares non-GAAP for per impact expense shares tax purposes, weighted that share, $X.XX of given on through first on diluted average As R&D our diluted we in outstanding significantly XXXX.

million, term $XXX resulted cash were our quarter. center billion. the investments Moving in leases quarter million expenditures million XXXX. flow to million and operations quarter. In and cash data on $XXX with $XX in $XX quarter, the $X.X Capital Cash QX cash short we was flow finance $XXX first to balance million during equipment. first to our free the of flow, the added compared in we ended This of from of approximately cash for

we repurchase billion authorization. XX share Let's In turn to remaining our million approximately QXm share $X million. repurchased activity. of spending approximately previous QX, $XXX on shares, we the our million end had repurchase At $XX

a exhaust approved our authorization. this on $X.X guidance full guidance. our second I'd last provide the our some share will reminder, year quarter, expect to behind we XXXX now commence I provide context billion once a authorization As previous for quarter quarter guidance. to like which this update and the Board new the to thinking an we also

XXXX, quarter of we in expect the second of to be range the revenue $XXX For to million $XXX million.

headwind We currency in approximately a quarter. of second $X are assuming million the

non-GAAP approximately expect operating to We XX.X%. margin be

Finally, in XXX we million our diluted XX to price. based million of weighted share the trailing XXX range shares shares to average outstanding be expect average on day

full the maintaining headwinds. range range revenue $X.XXX of two to $X.XXX our are billion. billion is year For we inclusive of XXXX, guidance This

a single an is which first currency $XX I impact and our a minute. Russia, second discuss service headwind million will the million is from sanctions The in digit high to changes $X and more approximately in

We continue be gross to expect to approximately margin XX%.

up be raising to are XX% of from to prior We the XX%. margin approximately XX.X%, guidance between non-GAAP operating

$XX acquisition outflows to to XXXX holdbacks. range consideration $XXX be million in of We This the are of million. the installments maintaining includes deal cash million guidance related for free cash $XXX flow in

newly the impact from our $XX guidance in of headwind of R&D is flow cash inclusive free estimated legislation tax XXXX. resulting effective million Additionally, an

$XX be range expect expenditures capital to of to $XX XXXX in the million We million. continue to for

revenue be of to XXXX. X% lease lines additions finance to expect to continue approximately in our We

diluted shares, we be to million Finally, expect outstanding in the XXX shares. million XXX range range guidance XXX of to down XXX from XXXX shares million of reduction to in previous our our program. million to an commitment share context impact guidance. we our reflects count guidance, revenue are on maintaining some additional share of full repurchase To share our anticipated our year this This

in we impact dollars this that guidance. us this, As the we first single the to quarter, maintaining outperformance millions in are Russia our business financial revenue impact revenue sanctions the mentioned, still in the we discontinuing sales high from our be initial within trends of year. Despite digit new absorb to Russia the seeing confidence expect and can while and give of the

Additionally, a to packaging and changes and security. to release a that subset capabilities we pricing forward continue I in we've reminder, updates our to soon approach pricing to been our as will particular value incorporate developing have changes. our on this sharing plans, for expect related will customer we base. to quarter been adding these more of the that packaging and and These look

As XXXX margins while well as reopening margin pandemic related restrictions expect in from and office soften. incremental to continue operating expenses event as headwinds we FX teeny to as

our outside raising Seattle. are XXXX our we guidance traditional of and are ability as such San to as talent seeing tech hire in Francisco, top New operating We York success hubs margin high cost

related As are flow, cash our guidance. to free we maintaining flow cash free

revenue single operating margins. impact year and a larger absorbed from offsetting digit are we recognition more impact our million Thus model. a cash benefits we will our a expecting of impact be revenue billings, ratable of Russia, increased given expect the this larger of While immediate high dollar

and and on committed solid achieved annual our $X continuing start XX% turn to disciplined of remain a long-term cash flow. in strong and targets, operating which a and to include goals XX% margins growth operator be as a thoughtful, be In it now of expected maintaining billion to delivering way. I'll XXXX in to are we our delivering profitability year and free are had the balancing to reminder by the Q&A. that, to we With focused over results, conclusion, for Lastly,


from the of from first Jefferies. Brent Thill [Operator Instructions] Our line comes question

Luv Sodha

macro the taking Luv demand overall you of you that And this seeing out about your in again, environment for Maybe you're United from Drew, war the the maybe is base? is higher and rates Thill. customer questions. my Brent interest you, talk in concerns, for there both one first on Thank the that light Sodha impact having for the Thank could here what States? on

Drew Houston


churn been And see like we by have pretty I'd So digit in high we the kind stable. and single are I and think of to business. of improve, is we fundamental lot revenue after. or overall, before Dropbox million things impacted a I and in the all share Ukraine. we have and that say around this, pandemic dollar rates hit, during kind most people our find pretty and we opportunity more situation I the that things needed Russia that And it's mean, product but a environments, stable. as like, mean, saw of need people in companies continue Dropbox the been pandemic, broadly,

was there. stability there lot So

Luv Sodha

we Got maybe And higher And it. conversion the you on then are few there? to Could the conversion you. that maybe conversion. improve that the could one to sided you've the seen, initiatives talk paid Thank next quarters? over you've front expect question about

Tim Regan

do course, can new beat impact we Russia, net XXX,XXX continue to job you the we can despite added new in range Sure, of that's single then see a range. of users maintaining where in flowing quarter, that you paying guidance And with guidance millions. being our see full we're through again digit we absorbing the QX users, high year the that net conversion, paying great to our

are areas And such contributing We're Pro across bit so also growth in that as that we're expansion a seeing HelloSign. And, course, Drew SKU different DocSend growth. initiatives we team on. and Family we're such retention. success, see to success talked many as Plan working of about seeing


Joey comes Securities. from line JMP Our the question from Marincek next

Joey Marincek

questions. so for the you Thank much

First one.

for ahead to get penetrated of you? thoughts you I'm So is? think do How curious do how business. that your available on that opportunity and just lies Drew there, opportunity you runway just on think the about growth the to sort core the

Drew Houston


a Dropbox And we headroom the number business, in at and or on in mentioned and of packaging and ways. about you the pricing adopting Backup look into subs iterating base. and improving SKU still improving conversion seeing of it. now FSS the millions of our subscribers core Tim areas a plans our the that size retention. And started price out user business, feature like lower are And paid last it's things or our point Dropbox. lot which We're or is separate entry year in important So free as that a in with were a given of

people stones into So giving stepping paid plans.

So different much call different with ways struggle many in and it I from think you tools. there's And but continued for around XXX stuff headroom anybody as evolving we of track of the big these at in tabs and see our probably there cloud era. browser, of on business have and then problems cloud were And syncing and And the our a keeping is finding this of watch In drives customers, the your organizing was workflow scale. the information lot era us across file investing files all harder in adjacencies we your to the information, all don't content. than think certainly open then the your other funnel, all or opportunity FSS we these us in in products. organizing all and addressing as, I cloud

And acquisition year into that E your last what think universal integrated company. about made They're think So Command like part we E, like content. we Dropbox. an look is acquisitions a important number of can Universal when that. search fully cloud Search organize you better that you Command of ways other is And solving

the constraints think I opportunity FSS. that's dramatically classic big of a So expands we market think kind that of beyond the

Joey Marincek

M&A color pullback there. this how you maybe front, at pipeline you Thank M&A for then helpful. point? about M&A you and can be share valuation, And any the on the are thinking super would helpful? on That's given the the color And

Drew Houston

I or broader in Obviously, mean, massively yes. strengths. moderate environment, as but that challenging a to our plays the market. as Sure, valuations no wants one unbalanced correct things

door had do or M&A. efficient. And on a We've think continue make becomes disciplined, there. bigger success lot to affordable So we'll some M&A to but bets the to more I then be good opens

the So lookout. we're certainly on

Joey Marincek

feel do if get the feel I And how what one like you your And you cash get you progress on billion $X you free then Awesome. done do there? target? still to more so quarter. about for Tim, towards guys. flow work much, just the need may, Congrats Thank to

Tim Regan

towards so We are obviously target, in guidance strong a billion headwind marching navigate. new Sure, the cash we $X maintaining that and making $X we're this despite with legislation. that tax target. year free we toward of also our at for tax the progress XXX. we maintaining this But of to that Maintaining do flow our XXX there's will have maintaining factors marching bit a play few year that to are billion, a continue and

portion this done and of will a We Ireland. execute are sub facility, Francisco our quarter Seattle executing continuing for a We've San nice job strategy. leases to against our subleasing virtual first it

continuing another certainly virtual factor that's hire first then and cost a locations, lower strategy. part of again, to our So in

in And two again, are factors. those $X target. billion to land confident So that our very we feel ability


William Blair. comes of from Ader question the next line Jason Our from

Billy Fitzsimmons

is Billy on Ader. Jason this everyone, for Hey, Fitzsimmons

features and Drew, to And, couple you the organically, about of quarter. introduced talked past years, of Dropbox shop One new some over a inorganically. in capture lot replay the

If across gravitating or are expectations, over ones over that you features customers ones outperforming and years, internal are past couple maybe introduced the these towards looking more others? broadly any the are

Drew Houston

multiple really much Well, a of with couple ago. compared broader portfolio Sure. a state years happy think the portfolio really products to I'm scaling, the to I with compared there's,

been DocSend are outperform that's replay So mean, showing good there's planned. well. a think of -- say we lot expectations I like and at great in continue think but single example, positive I'd early the something and they're example signs. a there. doing capture, super And shop the I things mean, the portfolio. as I an they're of And to continue a to to beginning I addition they be had is

Billy Fitzsimmons

off SKUs then and it. And years few of increase know major a a you've did made I the mistaken, not sense? added to question, new And could we're Got cards especially you I'm that your that ago. like or of possible some base environment, a guys if in kind inflationary the price right an be make is in it going ton price features a changes increase now in first broad

Drew Houston

see of SaaS we've the Short other with And the in lot generally, we answer is and on people same or success, past. And other saying a lot pricing environment, had same iterating yes. factors. companies packaging, of a

add is flywheel value, pricing each as we think so we value. a value of lever a to where more of And add capture it our more to as of And we kind plans.

Tim Regan

packaging And maybe this both complicated as building I'll approach. guidance given quickly our demand actually to to are revenue where year, our does capabilities our based Billy, more quarter and model, this our reminder, this customers. Where environment some ratable of XXXX is that, the to revenue that. address XXXX have features, recognition to in such on include And impact pricing customer the where this to add updates Tim, we'll security on increasingly new as we specifically will just cycles billing share and a flow just on XXXX


Rishi Our next question comes Jaluria RBC. from the line from of

Rishi Jaluria

I the and you do Tim. forward. got in be question. that question we about monetization guys. number how talking much up for up of sustainability to give follow Can taking one, a an two paid to that about on follow guess maybe been wanted success some you're Thanks initiatives my thinking via to an or illustrative of drive seeing able that Thanks, I've And I Wonderful. and the so you've earlier users. conversion maybe that example then should to going for

Drew Houston


by front, the is funnel and do on have top found say a been all sharing of new of the And in plans like of And how and Or to take to to driving how us, funnel, they example sharing loop onboard top really in paid of or that how high convert lots signups virality, that experience, level, the that the think, way opportunity in we Backup. the experience mobile at in we've particular the to on mobile they we so out And onboarding I the of virality. from of mobile then then the users, loop and top that. lots and SKUs and signups things across on and found conversion packaging, I'd just the and the so, iterating to look for that's and funnel, at funnel as simplifying improvements helps making the another key we've viral effective then simplify like experiences, possible. introducing friction seen experience a we

our to free of we separate base paid year, by products multiple of price a now ways to tested points, our or having And offering better part multiple offer that's able Backup example to So last or in addition the our customers. user and just entry just being more us points, plans monetize SKU. as it's in cheaper

we and say the to I'd So of parts engine opportunity a kind we have all used than lot to of them. more do, and

triage And so and opportunity we that. highest by continue where's of like area the

performance, that improving come So have for expect fact, yes, a the lever, - from in churn such there most huge improving reductions continue. to a I'd that say, the experience. arguably and business lever That's one biggest like important was that’s churn

Rishi Jaluria

$XX just And I That's so about you it. about, talked the question you helpful. really got Tim, to may be that housekeeping full year. the wanted talked headwind then a million on for Yes, FX

that headwinds that about that you on Just or million total of million importing $XX talked when the $XX XXXX in top million to you're clarify, additional revenue, people? is is $XX FX

Tim Regan

I the it is million million add when we the good Yes, $XX is It's it the question. two but $XX full gave is now. view an for full relatively update together, or year for million $XX it year, updated previously,

Rishi Jaluria

to that, seeing software remind companies exposures? talking can guess days might ago, headwinds? how companies companies why follow I'm are ago, case, are, that's that Thank understand the maybe they struggling most your million days that on currency to case us XX I kind software of of, relative other $X help initially up us when about understand and XX you. be guided are you're whereas seeing you stronger a And then that to of you can kind headwinds most tailwind top Okay, just FX when just the relative

Tim Regan

year, a see those fair the given rates improvement of billings currencies, maybe for did really from varying be how compare an the of Yes, of in just perspective, but into can QX, others, comments time. denominated on moments out end methodology Sure. question. that we just to in in versus Hard start from walking to me our walking to the

the example, the rates So April, for January our to up lead versus billing currency. into into lead up improved, according


Thank you. to the This program Houston does to conclude the question-and-answer remarks. Drew for any session of hand today's program. back I'd further like

Drew Houston

your right, today. us again next again you continued forward And We everyone. appreciate to quarter. joining all for support. look Thank speaking Well, Great.


your and ladies participation for conclude This conference. today's the gentlemen, does you, in program. Thank

day. now disconnect. may Good You