So really getting the cost structure in a much better place here to carve a path to profitability, sustain free cash flow and sustainable rates of SBC and dilution. So hopefully, that helps. And look, I know it’s a long answer to a short question but the last thing I’d add is just on managing the SBC, it’s been a real focus to get the share count right. We bought back nearly $1.2 billion of our shares over the last 18 months at prices below $10. That’s really helped us here to get through this period of transition with the business. With a level of share count growth, it’s more sustainable. Since IPO, we’ve kept that number at around 3.6% [ph] CAGR. So hopefully, you can see the discipline in the cost structure with the changes we’ve made and you’ll see us level out at a cost structure that scales well to produce profitability and free cash flow.
So thanks for the question and bearing with the long answer.
Operator: Our next question today comes from Stephen Ju with UBS.
Stephen Ju: Aside from what sounds like benefit to engagement, I think you’ve previously talked about how My AI has been helping you gather more intent data. So we’re wondering if you can help draw the line from that as a concept to revenue benefit as you continue to underwrite the incremental cost to serve?
Evan Spiegel: Yes. Thanks for the question. We certainly do think that, that signal can be another input into our models to help deliver more relevant and engaging advertising. We made a lot of progress on the cost-to-serve side in terms of My AI and we’ve been testing routing queries to different models and whatnot to help reduce cost, depending on the complexity of the query. I’d say, overall, our generative AI efforts have been much more focused on image and video models and helping people edit their Snaps or generate Snaps in new and entertaining ways and really using that as an on-ramp to Snapchat+. We’re really excited that we reached more than 7 million Snapchat+ subscribers in Q4. And I do think that Snapchat+ will be a way to monetize some of these more intensive image and video offerings that we’re rolling out.
Operator: Our last question comes from Mark Mahaney with Evercore.
Mark Mahaney: Evan, you talked about unifying the content experience across Stories and Spotlight. Could you talk about the degree of difficulty in doing that? Do you find use cases are such that people just pick one — users pick 1 or 2 — one of those and silo off there and it’s going to be hard to unify that experience? And if it is hard, how do you plan to do that? Just any more color on how you unify the content experience.
Evan Spiegel: Yes. I’d say, overall, anytime you’re asking people to change their behavior, that can be difficult. That’s why we’re really trying to be thoughtful about it. I think one of the most frustrating things from a user experience perspective is that the UI and navigation for Spotlight is different than the UI and navigation for Stories. So the initial steps here are really trying to unify the UI and then unify the navigation and make sure there aren’t any negative secondary impacts to various parts of our business. But I think overall, as we look at the way that Spotlight has been able to drive some really significant engagement growth and really the opportunity to broaden out our inventory pool and do our ranking models in a holistic way, I think those benefits will outweigh whatever disruptions we have to navigate as we unify that user interface in navigation.
Operator: This concludes our Q&A session, as well as Snap Incorporated Fourth Quarter 2023 Earnings Conference Call. Thank you all for attending today’s session. You may now disconnect.
