Aidan Viggiano: Yes, I think that’s like another way of asking for a revenue guide beyond the next quarter. So we’re not going to provide an outlook to DB&E. What I would say is, we guided to 5% to 6% on Q1 revenue. We are obviously working on a number of initiatives, as Khozema just mentioned, to grow these businesses faster. The dynamics that we saw in the quarter, I’m happy to talk about those. Really on the Communication side with regards to DB&E, it has kind of leveled off. As you mentioned, we are seeing low churn in that business. But relative to historical levels kind of pre-2023, just higher contraction and more muted expansion. And then on the Segment side, again has leveled off with up 200 points versus last quarter, still below 100% and that’s really just driven by the higher churn and contraction that we talked about in previous periods.
Ryan MacWilliams: Thanks. And then for Khozema, I know RCS Messaging for a long time has been something that could be a thing, but has never really showed up. But with RCS Messaging coming to the iPhone in 2024, do you think this could change things at all for the Communications business going forward, or are customers even asking about it, or is this still kind of wait-and-see?
Khozema Shipchandler: Yes, good question. I think it’s an opportunity. I think in the short term, we don’t really see a significant impact from the adoption of RCS on the business. I think we see peer-to-peer messaging as having the greatest impact in terms of improving the messaging experience between iOS and Android, probably less so in the near term on A2P. I think we do support RCS and A2P business messaging and we do think it can ultimately help customers deliver richer, more engaging messages. I don’t think it’s necessarily a near-term dynamic, but I think over the medium to long-term, it is an opportunity for the business.
Ryan MacWilliams: Appreciate the color. Thank you.
Khozema Shipchandler: Thanks.
Operator: Your next question comes from the line of Alex Zukin with Wolfe Research. Your line is open.
Ethan Bruck: Hey guys, this is Ethan Bruck on for Alex Zukin. As we think through 2024. I just wonder if you could just decompose how we should think about what the main growth drivers are and kind of get back to that. What you allude to is kind of the year-over-year growth through the back half — the remainder of the year after 1Q. And then also just kind of touching again on how we should think about the capital allocation strategy going forward. And just similar to the comment you made around the FY 2024 operating margin or the operating income to be better than 2023. I mean, is it also fair to think that this would apply to your free cash flow as well?
Aidan Viggiano: Why don’t I start on the last question and Khozema can talk about some of the growth drivers in the businesses. So I would say, just generally on free cash flow, we would expect — we’re not going to provide like a specific guide on it. I will say there will be variability quarter-to-quarter. We’re really pleased with the performance that we’ve delivered in 2023. In general, I would expect as OP income becomes better that free cash flow would follow.
Khozema Shipchandler: Yes. And then in terms of the growth drivers, let me just kind of split it between Communications and Segment. So in Communications, what we’re really focused on is use case-based selling, streamlining our customer self-serve process and CustomerAI. And we’re obviously not providing guidance for 2024, but we do have a number of initiatives across the business. And I think where we’ve really been focused is in partnering in those areas that I just alluded to a moment ago. I think AI in particular allows us an opportunity to deliver really innovative solutions. We’re already starting to see that in Verify, for example, for omnichannel authentication. We see it in Unify for more personalized customer engagement on the front lines, and then also Voice Intelligence for richer, very actionable insights from customer conversations.
And then as well, we’re leaning into our ISV partnerships where we are seeing strong growth as we help them scale their businesses and we think there’s an opportunity to partner better there. And then finally, we’re continuing to improve on our self-serve capacity, streamlining, onboarding, billing, compliance, stuff like that. In terms of Segment, our first priority is really just in mitigating churn and contraction. In customer conversations what we’re leading with is core use cases around personalization, ad spend optimization, and driving cross-sell. And we do think we have an opportunity to help our customers kind of streamline their implementations and enable faster time to value.
Ethan Bruck: And then just probably just touching in on how should we think about just capital allocation broadly going forward? And, thank you.
Khozema Shipchandler: Yes, I can maybe just follow up again. I think Aidan alluded to it earlier that we certainly do have some optionality, given our balance sheet, as well as the cash flow characteristics of the company. We’re not providing any guidance as it relates to capital allocation. We’re going to do some work as a part of our kind of ongoing operational review, and in March we’ll provide any updates around capital allocation as well as the other elements of our financial framework.
Ethan Bruck: Awesome. Thank you, guys.
Operator: Your next question comes from the line of Michael Funk with Bank of America. Your line is open.
Michael Funk: Yes, thank you for taking the question. So the first one for the Comms business, aside from creating the best possible product there, what should we expect? What do you expect to drive better revenue growth? Is it the Olympics later on the year? The election? Is it macro? What are your expectations for revenue growth drivers?
