Simon Belanger

That's kind of an SEO-based platform where they help websites kind of increase their Google reach, probably their chat GPT, all that geo type stuff.

ARR shrinks to around 10% if you exclude that acquisition, which you realistically should.

So bear case right now is slowing growth.

So acquisition impacts really shouldn't be factored in until they're fully integrated.

AI first ARR looks to be just over 500 million is tripling on a year over year basis.

So there's definitely a ton of momentum there.

But when you look to the company's total ARR, like it's kind of a drop in the bucket.

Will it continue if it continues to grow at this pace?

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.