Netflix (NFLX) 23 Jan 242023 Q4 Earnings call transcript

Hello, and welcome to the Netflix Q4 2023 Earnings Interview. I'm Spencer Wang, VP of Finance, IR and Corporate Development.

Joining me today are Co-CEOs, Ted Sarandos and Greg Peters; and CFO, Spence Neumann. We do have a few changes to our interview format this quarter.

First, we are live streaming this over YouTube.

So hopefully, it's working. out find we'll guess shortly enough. I

collected be reading we've the questions the from I'll and interview. community, analyst those -- the interviewer Second, questions moderating and

may forward-looking reminder, and be a making As actual we'll results vary. statements,

With that, first questions, this WWE is which morning. with into our partnership we set new of about that dive let's first the announced

WWE is acquire Salmon. expand on please for Ted, first WWE rights? And expand For Raw you can the that of question or on Can comes deal, audience, Is today? Netflix the the decision please? underpenetrated the from to X the Dan you the cost economics

Thanks, lean world. my But WWE I'm our Dan. members one sweet But entertainment, RAW would this into eyebrow the that single which sports feeds going to of programming. camera around our best the wink. say programming Think single weeks sport. drama could are as this If fans do expand bring raise is which every instead it. thrilled in XX with of to a and Live I at a we to time, the WWE programming love year. to live I of our is the is our every importantly, It of live event the spot sports most week, right desire business, eyebrow

WWE We North a base that multigenerational of decades, grow. this we is believe been that distributed For believe could this global we and WWE fan has And can the serve we historically America. grown deal. outside has under

should ad very our And some that they not us new should also to world. add fandom excited deal. the help and add can So this them build and help this We're growing that we to about business. -- I fuel around can

on or comment economics And cost deal? the to the the of you want Ted, did

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so while, programming event about at fits this this live look billion we've is we used programming a our quite of has for into expanding the as inside in Well, and now. talked to works, something been spend $XX

storytelling fan think lot So U.S. U.S. building And on Formula -- and you passionate should is a and -- the very inverse grow is of of terms big of like and of as room to Formula about it, this WWE. which One, build we like in One have a And great the outside One, could almost are Swing, of base the like Full events like as Drive programming, Survive, sports Breakpoint, Tour like like that like and with now through storytelling we shoulder other Quarterbacks, the France. our de To itself with the this Formula

to excited about to proven very super excited We're The us entertainment, So we're term. for our This long is is jump into. is sports formula this that deal close it. a core.

to Ben a question from it since a spread of lot sports, broader question Swinburn, around Michael the first. And Great. WWE approach he in but Nathanson's I'll read including questions got our partnership has

WWE the than why it news today, the to more now is NBA UFC, sports those safe interested attractive will presume given that of the be is global you Ted, like in types So similar rights or rights?

WWE those opportunities, entertainment. to is sports unique other So

get of close it's as can to core our So as sports you really storytelling. that

deal the with it with of seek globally. So the itself, that happy deals in economics licensing options and and super that in and our we're has terms we general protections --

at look signal other sports not a would I our this of any as So strategy. any change change to or

move questions forecast. along you, regarding now a this and Ted. series the results of to our Great. I'll Thank

this create from percentage Spence. Mark of a coming How forward? going And outlook? ARM that benchmark? or the think reasonable First, Mahaney upside downside factors are about Evercore we Is is that and for growth mid-single-digit growth to should increase what could either

Mark. sure. Thanks, Sure,

for essentially quarter in first, pricing and 'XX. back, member-driven reminder, price then, impact. almost XXXX, increases growth just partial late had And even all pretty because rolling focus us. it stepping out well, year a paid plans in in was So a a was We as sharing. was was no until on unusual our It year 'XX the

we As including noted revenue in XXXX, healthy we the we FX-neutral for as in letter double-digit growth ARM. to look expect 'XX, FX-neutral growth,

no including expect slate, grade growth So change pricing we our into continued full carrying net adds by member the and of a our powered to XX impact philosophy. XXXX year

business. pricing And of already in some in we action driver said, saw to ads and past should extra that we as scale 'XX. won't the ads from primary help But a some our get quarter. starting You members be

and If So ads general, business. beyond we'll have or of to we're we members in more we do can 'XX look beyond, over big you build that focused on into improving kind price engagement years, continually and when lots our more a that occasionally multiple of and value service. well, profitable

growth, and to So going I'll growth. of not the that's component want probably of we healthy that because specific volume because disappoint a growth mixture we output. guide revenue I'm overall on really ARM provide be And a to ARM a ARM, with revenue but managed

on lag monetizing strategy could based and our just that like pricing scaling FX, in year place a up which or at some generally, terms given and happen Just we're in more like down the broadly that our year. of reach reach things planned could any ads and it move in given that

Spence. Thanks,

share and Greg. best additional are once question continue for do biggest and healthy provide you to subscriber drive What Wells Cahall begin incremental member from XXXX. benefits growth? and Fargo think diminish opportunities or is subscriber additional in paid sustain what Our the is The to the a ROI question revenue next from benefits types from growth, Steve to revenue help content to of ARM

point that Well, at we're product the pay sharing we've excited to operationalized work. where be

it's of integrated in would everything iterating So we just we we're product improving on do. it part And experience. other like significant and any our

value on it of, as top think works of, and our that a think on we organic growth. But creating of for engine it's effective this understand for more healthy built So entertainment members we're that, the into essentially I very top translating revenue. to engine that critical working we see having

the events in our that programming more to games ads essentially, our see better-than-expected And all value continue better improve through those, of addressable paid it right? translate delivering and growth. quality market from to add many engine grow impact can things creates perspective and into we increased core work the continue the the sharing changes did. that churn, live If model, we're conversion even You more value, recent then a to support and to members' that value work forecasted will in revenue to effective than come. series more offering, means diversity our years our entertainment and adding like now we we films from our And that's more and see price our

specific or this to net particular point from is The plus million out across in to Anmuth Doug from adds X JPMorgan. all The anything I'll strong Greg. And next Spence. localized Thanks, seemed Is QX overall content there ad $XX regions, tier upside. but drive specific perhaps? question perhaps was the EMEA direct there, or and pricing pay to

thanks. of actually, Greg a perfect Yes, sort little was a EMEA what talking of just Well, about. of is example bit

Coast performance. had EMEA great frankly. a from in XXXX more, really Act. in it much great We had a -- and Lupon Class Berlin, Crown and and in the content France, first, Spain U.K., So The and strong across We performance, had Elite with we to Poland, and Nowhere finale starts slate slate Blood

that which And more if our drives last by of solutions starts better sharing through So engine. even channel, strong value growth then our that with slate. engine, monetization Greg's will, it and you translation answer paid kind

that helped as well. So

I'll EMEA past this quarter. revenue just We our quarter. in revenue not on came growth. growth all together neutral EMEA And it's importantly, really is very it as ads. XX% focus strong primary very again, So growth in in had It's say, net that this a FX past of result QX.

quarters? full become way there add is the what extra borrower subscribers? household for quantify And will or million sharing percentage the Thanks, How in paid to Ben. Doug around sharing, benefits? terms are sharing follow-up Do you question paid which also a believe several to you subscribers paying paid direct has of population of have far either more will $XXX I members along any still Greg.

Yes.

do As engine. is the say But we things sharing, a do, many I to product we paid that sharing mentioned, that to we've other gotten where important at this that value paid point see materially I translation opportunity continue to we also, to prices like point. improve the real also think it's something

it these cohorts continue finding in delivered as sort after new way to who about XXXX. the going new quarter. at certain to new our interventions those been cohorts the historical or the call of we're deliver definitely just And service, we that to right right convert engine. as continue effective to are using like think going are will to to have borrowers the So last folks about but that years the the to in more improve That don't pools, to to XXXX. But not growth for We're service I the most ahead, continue nudge folks just And to well. going action, right might time. improve increasingly,

around a transition Great. series to I'll us advertising. questions of now

For most of country XXXX? are New households, of or what to His launches or Salmon tech level and you new business seeking in for Research. measurement have Do ad are some a ads your question for member Greg, perhaps sorts milestones is, target from what Street you important of plan? your any the advertising ad MAUs improvements Dan

Yes.

I us Our XX% before you've That's it before think last top for is that. before, quarter hear and the the then XXX% say quarter-over-quarter scale. quarter XX% heard again, after you'll We quarter-on-quarter a growth us ads priority, quarter. say saw

a good grow in see that's the to ahead. So we that MAUs, We're XX on. trajectory now continuing be and million at quarters to

but on space. ads we're markets that I magic that different. channels. to streams, in number, it's As that we higher about downloads. means the attractive. We've operate what's market we added all still think resolution, grow fair not to room can It do of that the say to your the a additional focused got the in That making we've target, more means point plenty is work in. And MAU every There's engaging partner plan

and that. other more us of do in our where appropriate. You we Shifting see it's places plans pricing think structure

know we in that do do to We it us. that go of all can tremendous the So we're going works next ahead over space, and amounts quarters.

Second these priority, growing go-to-market for relevance. is ad our and And which brands. got want We've targeting, do we now. It's on capability to to like advertising you more increasingly the features are binge mentioned improved technical serve be tons improved to really good needs. got good this, products. That's members. with ad We've for features ads build growing and the sponsorships launch advertisers to better measurement. We have their partners And capabilities.

to this sales they and just capability they ad need is need meet how us. us So and operations brands better where teams, more

billion potential engaged on $XX opportunity, alone audience. billion $XXX got We it. a know long-term of most Connected revenue dollars engagement. here. ad TV. we're huge optimistic focused follow It's the We're on spend and the We've ex-China very about Russia, ad So

we positioned ad that of well linear shifts spend So some streaming. to we're capture from to believe that

countries XX to launching in question Great. thoughts around today? in And in addition the countries Dan's other ads an to any Greg, we're plan

one. operating the work I to global in noting Thanks and me getting spend. of to say, I never business ad it's in the maturity on we but the are ton on us reminding we're a operating XX% beyond that represent say that we expanding today. say about worth level currently on would got the countries from for that, never that ahead of that of would just of impact countries

take working impact already opportunity. the to of our of the we're We'll in I'd to but material ads see where we've business. got fullness general So years business us it's time, the work majority a say of point in to ahead spaces there's where the the of

directly be versus with think Do From you Greg. from of advertisers? relationship Fargo. to sense more about to transact invest Steve third-party ad you, and sales infrastructure? a Thank own of your efficacy continuing a would ad to tech do the you Cahall kind use investment How have required opportunity Wells what ad for of the sales in

Yes. And experience. just to partnership technology our in ads Microsoft with that of are already clarify, we supports part developing the

just a activities. contribute growing teams and features got large things, areas ad can we're we've the where And that on that mentioned, the out then go-to-market those to. some and working building of the a we portion on So similarly of but I of but the cover team on got sales working team, smaller, operations a they've differentially own sales our side

think asked the size grow to of you of investment, have we to So I what's in continue those terms teams. plans

high. So think that both on the margins we growth we that pretty see, But levels investment. those business a investment with ad expect and And that we modeled are even out at clip to strong very growing we've the the need. expect where we growing what those we remain and

assume ad-supported And to roughly how will double benefit advertising. convert ad-free U.S. tier? your upgrade On Rich a Greenfield Is question that tier called subscriber it Netflix's you fill this A base an will Great. to quickly it to Netflix assuming of unless ad subscriber result is, T-Mobile's reasonable Later that subscribers this inventory? will be week, as able Us, to change? from on

that price additional Yes. where previously. applying particular important a we many, that subscriber everyone scaling because for effective, hard for forecast of of the say make years, specifics offerings approaches useful is a I our lower-priced love consumer-facing deal got provide an just ads to partner lower part tool. won't same a that membership. but leveraging I'll growth the of very particular for the or into partner And into was having room channels set us plan and We're means we done for bundle now economics the It's strategy. deal, this many as ads work very techniques a our to to we've get just it

than opportunities. up higher to It's opens lower streams, downloads. at new better of the they get amazing real And get through is for with resolution the these whole access bundle. well as great basic, a They who a it leveraging So price plan bundles. new effective are range stories members those course, of a more benefit all

So going think -- you're to of supply. I how this fill bundles -- and continue mean leverage as Rich going we're I fast as the win-win-win think And really how about asked we when growing building a to we forward. that. we think challenges we're these could where growing than right be now, then to monetization it racing I'd in you that then it and fill behind creates and a But might much rather we're the our expect lot behind fill to improve of reverse. position growing that inventory as

happy I'm challenge. that to have So

now I'll of us series content. along related move to questions Super. a to

we operating if content Oppenheimer. this your from should Jason Ted, second-run shifting mix impacting of so, how spend you Helfstein more to of Are So content? And the think licensed Netflix's about mix margins?

some the that we content So from members. for be mix. meaningful always It licensing mix more in on appetite any can And our contemplates year. change a programming incredible original but amount #X -- an licensed to differentiation of last our that and Remember, value, XX original we we our also original made series. excitement spend watched the with weeks most series believe healthy titles. licensed healthy a between might others and see margin don't current that XX originals deliver up titles, I our we've had the for we're number outlook with deliver

away really from those So plans investments. have we to don't any move

Ted, Great. content. And on another from question for you, Rich

license having that While in movies -- impact those hours, doesn't film away have. willingness clearly of sort new of management licensed and original new of post the movies the terms movies signaling Studios theatrical the movie shows it same that licensing cultural Hollywood Netflix in to Netflix, towards departures or shift data original meaningful series outperformed strategy are on the viewers our new recent TV viewed Do appear titles production? from

QX. this Spain those No, year, some great the creepy look, behind world it world the out some came all was in was the all leave now over is the from attracting of nominated movie accounts, movies our even back most they Look year. the crazy at names the the the watched original deers in are Lopez or at world. X the morning for when in Yes. movie were about audiences place Oscars of biggest movie, Society a right By or last last at Jennifer the look look Snow mother. Look

to So about it they great a that or that care giving They and about something I want movie a just want windows. talk really or think a much They to over them make movie fans don't about cry dinner. budgets make love. laugh

and do us As distinguish outperform films, films license competition. do those you point original our uniquely the they from out,

morning, different got XX films films. this XX original our across Oscar Just nominations

we that first to So mix. our change strategy entertain blend catalog. world. It's best and kind be or the do formula to of not to of second always window window, that the plan deep going think works We

recently, series titles them services? follow-up that versus well We've abandoned to Ted, you example, their Six to Netflix. content your Great. And think HBOs, as licensing, as question should Under for your their begin have on competitors in TV and Netflix. opposition catalog licensing competitors exclusively seen, a own new their Disney around more streaming licensing Feet a NBC original keeping series Suits, of to Do you largely

history members. our show reach, moment a joy Suits generate it our again culture Walking hits helping Creek. biggest Dead the of Yes. billions I'd also Schitt's I we a of more and of break we've and got of you our even rich to and Because call or mean turn Breaking hours TV's into for I of guess some just recommendation but back pop like that a and recently big with can history like Bad say resurrect

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So I to am thrilled are for open thrilled to that we and are the open that again, I'm tell business. them studios more licensing

data. animated color Ted any question film a animated this well It's viewing Netflix's Netflix Rich LEO, has on feature animation most animated And successful repeat is, Is our resonated other on top to on date. as and Greenfield watched versus And film? for provide films? the why heavily XX based animated there been Great. from you film can features feature

I for think it. over resonated last watch reason joy It they year. to lot lot brings again, the but same Leo did great. of them drives that drives and engagement, a People really has which attachment. yes, lot also of families. a of And It's love over a do

in I Nielsen think the features. is flywheel and proof that animated we that of been has LEO and XX watched since most that have streaming to space, appetite create tracking IP are for animated feature. are top original there so much X animated movies points the

super Leo the really art it. the kicking The beautiful. and X a film animation comedy of families around that funny right so now is and animation So thrilled many levels. The I'm the Leo. We're with on just -- works is love

forward to look lot more. we So a

coming all year. cylinders. team on We're We firing have is that Spell now next animation thrilled just really with our up -- the Bound

Bryan the paid increasing have question is X and member? has decreasing? trends from how direct Bank, it I'll Moving engagement engagement domestically? engagement. per What like Has Deutsche Kraft globally impacted steady, And been and been to sharing Ted. This or to of along this

Yes.

The trends now moving globally. the we're viewing a a Netflix is leading also professional constant to and story It's of our and way and television thrilled continues. and engagement So from really it linear has story film been about domestically This story about really streaming. with kind games. with television

it Our a using like by engagement sharing. about account. bit the households is impacted our same Think paid fewer

to them own and our continue programming, grow. We're with and pleased spin over folks really we win accounts their our that normalize those as So engagement. with will off and get

a on see are released. in shown engagement of great. And have seen our enormous attracting that We engagement I basis X detail like you is engagement daily we just with even hours what about that in And graphic think that near hits audiences. our our you've looks title-by-title hits this members, some and you of in report which report

do that's all multiple the have that them, keep languages and countries So we're showing engagement. in that's to and in we we pleasing -- world. and in multiple up And have it's over excited to about, that

Great.

A gaming. to gaming. on couple on move questions of Let's

First And gauge changed Trilogy. added Greg. KeyBanc in How from Grand Auto how Justin are for Patterson like year? area over titles mainstream investment monetize? last about are The when portfolio you're Theft significantly sizing you the past has more thinking expanded even gaming it's the year and at engagement evaluating to the signals time to this what

Yes. exceeded performance Well, but we're high those had We the by hopes, even GTA. of it hopes. stoked high

a it's be. to -- a great that's place So

for So downloads biggest the only the big weeks, game that download it beyond not numbers mobile we've we've the seen game title, so engagement and top gaming last shows tripled general. big engagement mobile in over were but We which for for specific And any in far. year. was us, numbers several

tremendous playing in space have also a the to that category and set your had about and trajectory components, the we build to ex-China this but and tremendous a games as other growing, learn we of enough recognizing enough to learning amount institutional win, of that we we're opportunity, activity we investment significantly to on initiative we've to allocate that But that So question translate to actually ourselves believe subscribers. proving to deliver value. to we to for entertainment to investment, weren't can we that And capabilities before as we size effectively that value in that's develop. And billion into thought investment that sure consumer we growth got solid member spend, wanted we're strong our ensure content and can make to us. Games, it's Russia. growing $XXX a a huge that

are things So well. going

we've scale benefits which growth to I'll said overall words to a expect, the of early to leads all very use. of noting see that level worth that, content days, to been use would Having that far, appropriately. games that evidence, what we We investment that and love be small as so business And is it's continue budget we to seeing fraction right retention, engagement able like investment see our that, engagement it's we continue still, increased we'll then of our this is now.

Great. of from on Greg, a games Auto Michael asked, emulate Fortnite question Asking the on Grand Packer given Netflix outperformance reconsider well? Candy Grand Theft on success service? will Theft on second Auto Wedbush. the you offering service, to your of focus He Netflix gaming Trilogy the Crush on by seek exclusively will the as games you or of like available

cases, those well-known on Yes. of X popular or titles going that and series, some that the existing in with be own a best franchises are that's part of to we've us our been of the the games many and things learned recognizable are Licensing from to IP working with it's often now. that based or We've so. right continue either game games, strategy, IP, key are that's games, existing and seen, that's that films games game for clearly our ones exclusivity, form is

and find more look So to so our to kind those which opportunities for titles we titles Papel, Football La de XXXX, exclusive performed bring going licensing Heist for great right or things like great. do We're going Money Casa the licensing, to other like do can very Manager but to we're of you've continue to some more was quarter which also what seen us. last GTA, well members. with us

like work. see on, see this us You'll quarter definitely titles that Virgin so of and you'll do River, we're more the it with that that's strategy

Great.

of sharing rest We pricing France? U.K. and the now Greg, in to price to about of U.S., in password majority you question and Hunlock adjustments the of of light but The the the UBS. free should changes how think are a from implementation recent through I'll have is, Spence, also the well. world we that in you the in feel one, join point can This John as question

Yes.

form rolling while As we about increases we had we as we sharing increase. hold largely out put paid a talked previously, were price that because work price substitute the saw on of

that, we're resume towards approach standard to we're increases. able through price that sort Now our of

acquisition in better at enough went when U.S., additional and try do seen other we Those entertainment value, engagement then delivered U.K. And than monitor You've France. look us continue well, and to assess and we'll can as go a that that we the we've positive that to there. changes forecasted. countries to those is series going. And ask retention keep can to pay bit we members. and great members more in so film and signal back for we games a more invest them flywheel

statement So there? know the summary to wanted Spence, you anything to I don't And might if be back business usual. as add

I you're on think a you nailed it, roll.

it's So good.

now along move of us a competition I'll landscape. Great. to on couple competitive questions and the

and it to considered its talk you could So The option about the end you, to advertisers? some prime at turn also to are first members, of question making is of the relative tier for Greg. comes you Prime what coming month, ads Amazon from Could over this Netflix you're you puts given Maria about positioning Ripps of comment when With takes Netflix Canaccord video with competition how similar were Genuity. Amazon? and that I'll X decision? the option default making the speaking the if And ad to the that on default

be ads. not history making force of was into We a But adds, for on Yes. and more wanted it give them But thought access price did that ads resolution the them based attract lower to it the to able all streams, the plan these to the benefits, higher downloads for them than rather long our we given incredible default better ones members our better change the having option. and it consider to course, stories. of

we growth I were previously we seeing rate and So growth are the on. mentioned numbers the of

ad big think members, right? talked is as any spend for working big, over positive as well probably terms that and alone. is in CTV then seen We is So result, $XX well. And important start which the approach thing competitive I of billion with we backlash market's about generally haven't to most in our positioning, a the

most So there's And of got when think for engaged to who room that and for watching something That how about our spend, play really most are incredibly important from competitors. be, players, series we the audience some films, think the an multiple compete brands us ad we that for We've culture-defining strengths. need it's audience, clearly. differentiates is our I we place engaged to live an to and events.

So we're that's play space in. going the that to

Super.

landscape the Another content spend? absolute content impact content the Goldman moat possible This or Spence from it best from comes trajectory widen company could own for on beyond? Sachs. of question probably It Netflix's take. competition. competitive Is Ted XXXX spending Sheridan the and that Eric or on current How of same the its competitive X in amount lower and to does

I always the a programming. been for competitive top think it's place

that it And market when competitive. come really what think going that's will big for packages I top everyone's remain pretty whether is when out to you're what the talking I about think continue. is be to duking the come and titles to them

that we the very We retention, subscriber see see engagement. in and we We see rate. growth. are healthy think I that the at the that a in in reinvesting that

think to time to Spence, do I this differently, be try the don't test you So think And that. would but...

it well of and building -- to just the would time our I focus and benefits say of doing seen execution Yes. our that, over improvement, thrilling really business and great gradually reinforce we've mean, and members. just I continuous kind

$XX are to year. our we over increasing kind trying the billion reinvest then and We're last of few up back hope the margins growth, as revenue healthy you out strikes said years as which in the spend content this that our seeing as spend a also of in portion increasing spend. sustain revenue of cash grow growth, content it of 'XX. business, profit as like so time to we get profit And to coming good see and and our the And over which we're back that we've content we in means reaccelerate business, much

business that with while we still disciplined do overall do spend announcement but And very to plan room is in responsible that, We in staying point. do it smart, in to in do we So even judicious, today's obviously, our way. believe have want content a our WWE performance. a of case terms to we

Yes.

overserving thrilling the think served has I us members perception content to well. our of pretty

got to of Yes. grow, lots we've obviously. room And

want it just question, so yes. we in And do disciplined No a to way.

Sachs. picture from Goldman question. from A Eric question bigger Another Sheridan

audience of to media how Netflix, to I been about like widen that, consumption? you or, Given or is by referring Ted. built to exposure for think things of short-form the Eric maybe content the do formats that verticals potential scale has new think areas your

are we're something we're alluded core, markets, our to In television most in now I back that would consumer about getting getting movies, -- spending. XX% of our business areas Greg capturing the -- mature time. of kind the and call that business, of games, about that In of to TV earlier. we're X%

grow. have we enormous core our an very in So still room business, to

kind and of So different for doesn't when There's better it better I in look at in to much growth every day. of of make about getting programming we're our it me inorganic programming. this that for think kinds bit members that, searching hopefully more grow at so room

So there's certainly and that ways. some of not lot complementary are necessarily businesses adjacent competitive in are a

platforms of have turned Some content. be professional for user-generated talking marketing tools that the about those in you're our great maybe out to space

focused, think, professional rightfully we're think I So on of storytelling. core the I

capital move questions to I'm Great. to this a over going few around allocation.

BMO is your help you M&A activity the sorts can mobile XX the first Markets. is, would views question M&A for Capital of for from other gaming, aqua-hire next Basically, The us months? Is the there what possibility Brian in? interested be Spence over Pitz frame or Netflix of

billion to Brian. bias you to be try know, very is of allocation as our We of to philosophy. initiatives. thanks, not our Well, not a of holding currently We're M&A We kind hold and capital historical build debt. activity. gross But terms $XX responsible on new amount potential We $XX speculate We're buy. going modest business our of fully to fund in billion and debt.

selective of accelerators You in organic that the business. growth. into our into to growing into ads, see And look live, at that while still terms investment we'll games,

may interested We not the assets some may done have or of But that that. be big available. not we're in linear

We -- letter. noticed in noted that that the also

I after. so kind about out how to of think And that's go there think should you our

to cash Alan This know have coming X revenue. months another Loop is And on and and with the We optimal few buyback X your believe years? the thumb rule Capital. your equal activity the maximize Gould allocation. next of do capital is staying stock over is of begins factor How general price you from of Spence, your current to shareholder question you, some a debt the of maturing of to big ratio What leverage value?

Yes, sure.

allocation you then excess in We've in return cash of piece buyback. of time. missed form of months I cash the to over philosophy, hold is on form that our asked capital about revenue balance to last the the glad shareholders and the the sheet which to of because done X I'm So

at the little year, $X FX at for end flow billion a the rates what with of the in And on XXXX. over of sheet -- year. so $X you strong say, the the And is expectation kind billion we're as our kind with, projecting current balance of the of build roughly cash cash for

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