Jeff Lawson: Yes. Thank you, Pat for the question. So look, I’m really proud of what the communications business has driven as well. I think we’ve shown that a business at scale can drive profit. However, I do think that an even better business that we’re building over the long-term is a business that fuses communications and data together. Why? Because with an understanding of who those communications are going to we can drive better communications not just more communications, and that’s the strategy that we’re pursuing. And so if we are able to take the data assets in segment and bring them together with our communications assets, what we have the opportunity to do is add a lot more value to our customers, drive a lot more software value to the company, and really competitively differentiate in a market where this is what customers want, customers want more effective communications.
I love these stories about how, for example, I talked earlier in the prepared remarks about the customers using segment, using predictive traits were able to bring down the cost of customer acquisition by 85%, right? Like those are the types of stories and business results that I think we can drive when we bring together data, which allows companies to be a lot smarter, and communications, which is the vehicle to actually drive a lot of those outcomes in terms of how you talk to a customer. And so when I think about the opportunity ahead. Look, so far the conversation has been very much focused on the standalone nature of the segment business. And obviously we’ve been focused on making sure that we drive growth as a standalone. But what we’ve – the next step for us is to really start talking about what we can unlock together, and that’s the better not more story.
And I’m really looking forward to using, especially AI and all the things we talked about with customer AI as the vehicle to fuse communications and data together in a way that’s extremely differentiated and honestly is emerging. Like there’s no one in that market today. And so the gift of the renaissance of AI that’s going on right now is the idea that you can get out there with a new value proposition that is truly differentiated and that’s what we’re pursuing.
Pat Walravens: All right, that’s really helpful. Thank you.
Operator: Our next question comes from Ryan MacWilliams with Barclays. Please go ahead.
Ryan MacWilliams: Hey, thanks for the good question. Any early insight into how your customers are thinking about holiday season traffic this year similar to last year? And then we’ve seen a pickup in M&A recently from a number of software companies. Just checking to see if there’s been any incremental changes on your strategy there. Thanks.
Khozema Shipchandler: I can talk about maybe holiday seasonality and then Aidan can talk about capital allocation or Jeff, in terms of the holidays, I mean, there is some seasonality, obviously, we would certainly anticipate that as with any prior period, especially around the kind of Thanksgiving period, that we’ll see an uptick in certain traffic, certainly heading into the Christmas season. But I wouldn’t call out anything unusual relative to prior years. I think it’ll be kind of the normal seasonality that we see in the business and it’ll more or less line up with what Aidan provided in the guidance.
Jeff Lawson: This is Jeff. I’ll talk about M&A. As a matter of good corporate hygiene. We always are keeping an active game board of opportunities that are out there in the market. That said, I don’t think M&A is our top priority right now. Obviously we’re digesting a lot of change and we’re really proud of the results that we’ve shown in terms of turning the corner on non-GAAP operating profit and really growing the business in an organic way. And so that’s really where the management team’s focus is right now. But that said, we always do keep an active game board and obviously we’ve got a pretty good war chest.
Ryan MacWilliams: Appreciate the color. Thank you.
Operator: Our final question comes from Fred Havemeyer with Macquarie Capital. Please go ahead.
Fred Havemeyer: Hey, thank you very much. I think I fundamentally agree about data is one of the key differentiators in the generative AI application race. And I think just closing out the call, I guess with a question at a high level here, big picture, longer term OpenAI at the start of the week, I think hinted at a longer term trend that we might see more autonomous agents in the AI space where they carry out tasks without human intervention. And so just thinking about that, where perhaps more is done via AI automatically without human communication, how do you see Twilio over the next – I mean, I don’t know who can estimate when we might see this exactly, but over the next coming years, where Twilio would fit into that value chain? Thank you.
Jeff Lawson: Yes. Thank you, Fred. Look, this AI world is rapidly evolving, and I think what we’ve set out is our vision for our role in it, which is to help companies to use predictive and generative AI to really automate and improve all their customer interactions by taking a really good understanding of their customers. The story that’s told by the data that those customers give off their clicks, their scrolls, what do they sign up for? What do they not sign up for? Everything that they’ve done, turn that into an understanding of the customer. That’s the segment profile. Take that profile and now inject it into every touch point a company has using AI to improve every one of those touch points. I think you’re going to see a tremendous amount of automation in terms of customer service, in terms of presales, in terms of marketing.
