Evan Spiegel: Yes. Thanks for the question. As we look at North America, in the fourth quarter, that decline was mostly an artifact of rounding. We’re not expecting a further decline in North America in Q1. I do think overall, though, there is an opportunity for us to invest more in growth in North America and Europe. Over the past 5 to 7 years, we’ve really focused on our Android product and growth in emerging markets. That’s really about attracting a large volume of new users. I think in places like North America and Europe, we can do a better job on iOS and really on resurrecting people who tried Snapchat or who aren’t coming into the service as often or when they come back to receive a message from their friends, helping them onboard to our other different features.
So that’s going to be an increasing focus for us and we’ll be investing more there over the coming years. We’re kind of currently just really sizing that opportunity and really understanding it. We obviously reach a very large number, I think, more than 75%, of 13 to 34-year olds in over 20 countries. But I do think there is some headroom to continue to grow our business in Europe and North America in terms of users.
Operator: Our next question comes from Rich Greenfield with LightShed Partners.
Rich Greenfield: Evan, I guess, this all kind of comes down to the investor questions are tied to scale. And the Snap’s smaller scale relative to Meta, is that just sort of a fundamental long-term issue? Because I think people are looking at Meta growing 30% at a tremendous underlying scale and certainly spending very, very aggressively on AI and ML. And is that the limiting factor on your growth? I mean 10 to 15, as you noted, is obviously a pretty nice acceleration from where you were this quarter at 5. But backing out subscription years probably, you could, at the bottom end, still grow below 10% ad only. So just as we think about sort of 2024, is Q1 the low point? Meaning, is there a dramatic acceleration that you see possible throughout the whole year, as you lean into DR and the ML investments pay off?
Or are you just sort of fundamentally disadvantaged? I think that’s what investors, who are obviously seeing what’s happened to the stock overnight, are trying to struggle with and understand.
Evan Spiegel: Yes. Thanks, Rich. I think, as a platform that serves over 800 million people around the world, we’re certainly one of the largest Internet services. We aren’t as large as some players but I think there’s enormous opportunity for us to continue to grow business. I think, as you look at sort of the overall revenue resilience, one of the things we’ve really focused on in the last couple of years is pivoting to lower funnel objectives for advertising partners and especially small- and medium-sized businesses. We historically had more of a brand-focused advertising business. And it’s taken quite a lot of work and investment. We’re certainly trying to play catch-up here on the Direct Response side but we are seeing evidence that, that’s working.
So I think as we look at our 7-0 product, for example, in the way that that’s really driving purchases for advertisers, that tells me that as we apply those learnings to other categories like apps, for example, that we’ll be able to see more momentum and progress there. So it certainly has been a difficult transition from a more brand-oriented business to Direct Response but we are making a lot of progress. And when I look at the work we’ve done just on the modeling side and the scale of our models now and our ability to utilize pressure more real-time signals in a privacy-safe way across our platform, I do think we’re making significant progress. And we’re optimistic that we can continue to accelerate.
Operator: Our next question comes from James Heaney with Jefferies.
James Heaney: Derek, can you just give a little bit more detail about what you’re seeing so far in Q1, whether that’s January or early February? The guide implies a pretty decent acceleration in revenue growth. So just curious, what’s specifically giving you that confidence to get back into the mid-teens at the high point?
Derek Andersen: Hey, it’s Derek. Thanks for the question. I think at a very high level, we’re off to a good start. It’s early in the quarter, we’re only about a month in but we’re off to a good start. And as Evan said, we’ve made a lot of progress with the ad platform in the trailing year. And I think what we’re really looking for here is sort of four high-level things: One is significant improvement to the ad platform fundamentally, then improvements to our go-to-market, then delivering better rollout to advertisers and then that translating into budgets, moving over and advertisers growing. And then, we made a lot of fundamental improvements to the ad platform and our go-to-market last year. Evan touched on a lot of that and how that started showing up in improved ROAS [ph] in Q4, whether that was the more than 90% growth in purchase-related conversions in Q4 and also early input signs in advertiser growth, with the more than 20% growth in small- and medium-sized customers in Q4.
So you’re seeing that those fundamental improvements to the platform and our go-to-market efforts starting to translate into results for advertisers and then us seeing that in some of our outputs with a good start here and then reflected in the guide that we’ve provided. So we’re definitely seeing progress there and pleased with the start that we’re off to. And that’s reflected in the guide. And as you noted at the high end of the guide, we’d be looking at a 10 percentage point acceleration in the year-over-year growth rate which would certainly be good progress in a single quarter and we look to build from there. So with the potential question, hopefully, you’re seeing the progress that we are.
