Aidan Viggiano: Yeah. Thanks, Pat. I’ll take the question, Khozema can chime in if you’d like. Yes, we recognize we’re sitting on a lot of cash. That, plus the combination of our emerging free cash flow profile kind of affords us a lot of flexibility. We’re focused right now on executing against the existing authorization, of which we have about $270 million remaining. And I’d just say that any updates to our capital allocation strategy or our financial framework will come upon the completion of our segment operational review in March.
Operator: Your next question comes from the line of Taylor McGinnis with UBS. Your line is open.
Taylor McGinnis: Yes. Hi. Thanks so much for taking my question. Maybe just to touch on what you saw in 4Q. So it looks like the sequential growth in the Communications business was slightly softer than last year. And the upside to total revenue growth compared to the guide was a bit softer as well. So can you just maybe talk about what drove that? Were there any areas that became more challenged in the quarter? And it’s tough, I guess, to disaggregate what you’re seeing with SMS and some of the core API businesses versus Flex and others, given the change. So maybe you can just talk about the difference between performance between those. Thanks.
Aidan Viggiano: Yes, I don’t think they’re — think the one thing I’d call out is we came in about, I don’t know, 4% ahead of the midpoint of the guidance range that we provided for Q4. It was really just driven by record volumes during Cyber Week. We really saw elevated holiday traffic throughout the quarter again. So I would say largely a seasonal lift relative to kind of the beat and kind of what drove that. Is that kind of your question? I just want to make sure I’m understanding what you’re asking, Taylor.
Taylor McGinnis: Yes, that and just when you look at, I guess, sequential growth, so quarter-over-quarter in the Communications business, it looks like last year might have been a little bit stronger at the same time. So I’m just wondering if there was anything that maybe deteriorated in the macro or anything that maybe came in a little bit softer just to be mindful of.
Aidan Viggiano: Well — I mean, I think it was largely in line. Last year, we were up 4.5% in Q4 relative to Q3, and this year we were up a little bit over 4%. So it’s roughly similar to what we saw last year.
Taylor McGinnis: Great. Thank you so much.
Operator: Your next question comes from the line of William Power with Baird. Your line is open.
William Power: Okay. Great. Yeah, thanks. Maybe first question or primary question for Khozema. I know you were obviously already running the Communications business, but I guess now that you’re wearing the CEO hat, so to speak, maybe you just update us on how you’re thinking about kind of key strategic priorities for the Communications business in 2024, kind of across revenue, margins, et cetera. And maybe just as kind of part of that, the Communications operating margins now approaching 25%. Any color on how to think about levers you can maybe still pull there?
Khozema Shipchandler: Yes, both good questions. So I’d say just kind of — just to maybe start with like at sort of the strategy and vision level, like, I wouldn’t really anticipate a material diversion there. I think at the end of the day we want to build out the world’s leading customer engagement platform. And I think that we pointed out a few opportunities in which we can improve our execution. But I think you’ve already seen like really, really strong progress on the Communication side and we certainly intend to continue that. I’d say, secondly, we’re very focused on profitable growth and as you said, I mean, we have made a lot of strides there. The margin rates have uplifted quite a lot. I think that we definitely do have an opportunity to improve our sales execution across the business and grow the company faster.
And I think we can do it from a structurally more profitable position. I think we have an opportunity, for example, with ISV relationships. We have an opportunity to improve in self-serve and we can continue to build off of some of our cross-sell opportunities as well in our product portfolio to deliver faster growth. As well, I mean, I think innovation has always kind of been at the heart of what we’ve tried to do at Twilio. And I think sticking just to Communications, I think that we have a number of AI-related products that we’ve been able to put into our roadmap, examples being Voice Intelligence, Fraud Guard, Flex. We’ve got a lot of other products and features still to come. I’d say there’s a kind of close cousin to that which is inside the company there’s a lot of automation of internal processes that I think are a big opportunity that will help us become more efficient, also allow us to serve our customers better.
That could be in the back office, that could be the resiliency of our platforms, could be increasing developer productivity, for example, with copilots and the like. And so, I do think that there’s opportunity for additional volume leverage in that business. And it’s really a combination of both focusing on increased profits while also lowering increased growth.
William Power: Thank you.
Operator: Your next question comes from the line of Ryan MacWilliams with Barclays. Your line is open.
Ryan MacWilliams: Thanks for taking the question. First one for me, pleased to see the stabilization, the Dollar-Based Net Expansion from both the Communication and Segment pieces. Do you feel like you have found a floor here from a net retention standpoint, assuming like stable macro and you have more visibility from both of those divisions?
