Cory Carpenter: Great, thank you Jennifer.
Jen Leyden: You’re welcome.
Operator: Thank you. Our next question comes from Mark Zgutowicz with The Benchmark Company. Please proceed with your question.
Mark Zgutowicz: Thank you. Good evening, Craig and Jen. Jen, a couple of quick questions for you if I could. I was just hoping to get some visibility and creative revenue retention expectations this year ex agency. And I was also hoping you can maybe comment on churn ex agency. And then the second question is just around the EBITDA guidance. Just curious, what are the expense assumptions there just giving us roughly $20 million delta relative to your top line guidance? Any color there would be helpful. Thanks.
Jen Leyden: Mark, would you mind repeating the second question? I didn’t quite hear that.
Mark Zgutowicz: Sorry. Second question is, if you could just talk about the expense assumptions within your ’24 adjusted EBITDA guidance just…
Jen Leyden: Yes, the agency I’d only mention, I heard that…
Mark Zgutowicz: Sorry, sorry, sorry, I was looking at — just looking for that to your comment on churn ex agency.
Jen Leyden: Right. Okay. And so I’ll start with EBITDA. So yes, I think what you’re seeing there in our EBITDA guidance, we’ve talked quite a bit about how we employ some proactive cost action pretty early on in 2023. So, as we enter into 2024, you’re seeing a little bit of a reset on our cost base. We’re certainly not pulling back on all of that cost management. There is certain element of the cost pullbacks that we made in 2023 that we’ve reset entering into 2024. And that’s really just to set ourselves up to get back to top line growth. There are elements of employee incentive based compensation that as you can imagine are tied to the Company’s financial performance. So as we reset into 2024 at the start of any year, we’d have within our cost base and expectation of that incentive based comp coming back because there’s an expectation of the Company hitting its financial performance.
So it’s really just a bit of a reset. Again, not a full relieving of all of those cost actions, but we did go into 2024 pretty deliberately making sure we’re investing in growth and setting ourselves up to get that growth. The question on revenue retention and churn, so we don’t we don’t really give a revenue retention figure or stat on creative versus editorial. I think the way that I would answer that question and I’m assuming you’re talking a little bit more about the subscriber base, but we continue to see. When we think about our large enterprise customers, we continue to see those retention rates pretty much at 100%, right. To the enterprise side of things, we continue to see that figure being really strong as we start to grow that subscriber base.
And we talked about a lot of that growth is coming from the smaller e-commerce and subscription side of things. Those obviously come at least at the start with a lighter revenue retention rate. So you’ll see that pull down a bit and you know from something like 100% on the enterprise side of it and those smaller e-commerce subscriptions, those all do fit on the creative side of the business. So, not sure of that that answers those questions but we don’t we don’t really give a creator versus editorial retention or churn elements stage gate reviews.
Mark Zgutowicz: Thank you.
Operator: Thank you. Our next question comes from the line of Tim Nollen with Macquarie Asset Management. Please proceed with your question.
Tim Nollen: Hi Tim from Macquarie Research, not Asset Management, but I’m just curious Craig if you could give a bit more color on the potential revenue from AI. You said earlier that you expect it to be some kind of a longer term ramp in revenues, but would we see this in a line like paid download growth? I mean would there be a high demand for AI — for images and for data behind that that people can used to generate their own images. And I didn’t say that very well. I think you know to me would that come from the paid download side which has basically been flat quarter over quarter? Or would that come in somewhere else?
