Bruce Buchanan

SaaS revenue is just gross in there.

Product revenue, we book at our margin, which is typically about 3%, which goes into that gross 170 number.

But advertising, we book the whole number.

And then our margin on that, if you look at our contribution numbers, less than that.

That's the difference between the 170 and 90.

It's basically the way you treat the advertising revenue.

It depends on what we're doing, but our gross contribution margin on advertising is about 50%.

That's the amount that we pass on to our e-commerce partners, effectively the delta between those two numbers.

So if you look at gross profit, so if we're selling product, they keep obviously...

around 97% of all of the revenue.

And so we don't book the gross product sales, but when we're talking about advertising, we book the gross revenue and we clear the transaction.

So Disney's trying to,

acquire customers on our platform, they might spend X million dollars.

We clear that with, you know, a thousand different e-commerce partners or whatever that out of players.

And then, you know, the core part of our business is we made, unlike a typical advertising value ecosystem where, and this is slightly different from product and marketing, which is the other two sides of our business, but on the advertising side,

We are a closed-world garden, similar to like a Google.

And so we clear everything and we deal directly with the advertiser, directly with the e-commerce company, primarily because we're dealing with sensitive data.

And in the last few years, that's only become even more important that we keep that very secure for our clients.

Yeah, they're all JVs.

I mean, the way the economics work on the advertising is their contracts like JVs where we pass 50% of the transparent relationship.