Simon Belanger

It definitely won't be in a few years, but it looks like they're creative enough.

freemium situation is picking up a lot more monthly active users across pretty much every area of the business.

Many will look to the AI segment being the fastest growing as a bull case, which again, if it can continue, it certainly is.

But the contrarian look is to probably say, hey, it's like, what, 2% of their total ARR right now.

Talk to me when it hits double digits.

Then you have a real growth vector for them.

Creative and marketing subscriptions grew around 11%.

which is where the deceleration is kind of occurring.

However, by the looks of it, it is partly strategic.

The company is deferring pricing increases, pouring a lot of effort into that freemium model.

They're looking to defer a bit of growth now for long-term gain.

And the bet here is substantial user growth, convert them to paid members.

And I will say if they can execute this, the company is trading at like 8x forward earnings.

It is cheap.

There is absolutely no question that it's cheap.

But if you go to this freemium model, you never really convert a lot of these users.

The bear case is ultimately right.

Because I used to run a freemium model on our platform.

I will tell you, it was terrible.

It was a complete disaster.