I think six or seven of them, we actually now have some initial results that look super positive. The others just take longer. And so we will be rolling those out more at scale through the rest of this quarter, and it will bleed into July as well, which is why we see the back half of the year, which we’ve projected kind of sequential improvement in the back half of the year there.
Luis Visoso: Totally. And maybe just to add, when we talk about more data, as we said last quarter, there are two components of more data. The first piece is just using more data that we already have. There is nothing we need to do. We just need to consume it. We need to train our models, and that’s what we’re doing. And the other piece is to get more data, which we think we can based on our total portfolio so that we can actually improve and create a competitive advantage. So those are two components of the data. And we’re, as Jim said, we’re working very hard to improve our models. There are very clear interventions that are coming in. We’re testing. Tests are looking encouraging, and therefore that gives us confidence that we’ll see the improvements in the back half.
Daniel Amir: Thank you. The next question, Jason Bazinet from Citi.
Jason Bazinet: I just had a question on the share count. Maybe I have my notes wrong, but did the share count guidance for the full year increase a bit? And if so, do you mind just unpacking the drivers of that? Thanks.
Luis Visoso: Yes. Jason, it did go up a few million. It’s just driven by all the changes, all the restructuring we’re doing. Nothing significant. I think it went up less than 1%, 0.5% or something like that. So that’s the increase you see there.
Jason Bazinet: So I thought, maybe my numbers are wrong. I thought it went up like 3%, 492 versus 476 or something. Maybe I have the wrong notes.
Luis Visoso: Yes. I’ll come back to you, Jason. I think it was a small increase driven by all the restructuring we’re doing on the year, but that’s really the change. Nothing else.
Daniel Amir: Great. Thank you, Jason. So the next question is Michael Funk.
Michael Funk: Jim, you mentioned interventions on the modernization side and not in the numbers yet, but can you give us more clarity, maybe some quantification on what you’re seeing initial testing and expectations for return on ad spend relative to the industry standard today? AppLovin commented last night, they believe they have a insurmountable advantage on the modernization side. And so, I would love to hear your thoughts of what you’re seeing with the initial testing and where you are or believe you are return the ad spend and where you believe that you can go and close that gap.
Jim Whitehurst: Well, I’ll give you two observations and then Luis, if you want to kind of add in here. So first off, some of these tests, as we’ve then kind of talked to partners, they have been extremely positive and we’ve actually had some people moving some more to level play with the results of some of the things we’re doing. And these are large max customers. And so that leads us to believe that the interventions actually close much of the gap versus AppLovin. These things are kind of relative share. So a lot of share moving back our way, are we equal to them or not in ROAS? It’s hard to exactly say on these, but the customer feedback has been actually extremely positive. And we are seeing share shift and we think when we roll these out, we will continue to see that.
The other thing I would say just broadly is, look, nothing against AppLovin. I think they’re doing an amazing job. They’re executing on all cylinders. I think one of the benefits as we look at ourselves right now, and we hear this over and over and over again, no one wants to have one partner, right? That scares people. You don’t want to be reliant on one partner, especially given the ability, if you have a lot of share, to just increase your margin, i.e. what you pay a publisher versus what you charge. And so people want competition there. And so we’ve had a number of customers just say, we’re being patient. We’re expecting you to catch up. We’re here for you. You got to deliver, but we’re here for you. So it’s not a situation where, a company can run away with this and everybody’s excited, but people are wanting us to close gaps and win.
So there’s a lot of patience there. And as we’re working through these, again, where we’ve worked with a couple of partners specifically on these things, we’ve seen really good results against those things. So, whether we close the gap to 100% or to 70% or 80%, it’s really hard to say just as we’re kind of running through, because you don’t actually see the ROAS numbers across, but what we’re seeing is very positive trajectory, which will impact spend with these various advertisers. So that much I can say, it’s hard to compare benchmark to benchmark.
Michael Funk: Thank you for that color, Jim. And by the way, very nice speaking with you last few quarters and good luck to you in the new role.
Daniel Amir: Thank you. So the next question, let’s open the mic for Clark Lampen at BTIG.
Clark Lampen: Hey, thanks for taking the questions. Jim, I wanted to start with the plus to sort of pro transition that’s underway. Anything that you could tell us around early signal with customers sort of moving up to more expensive pro plans? Have you seen that sort of happening the way that you expected? And then, Luis, a bit of a micro question on 2Q, but understanding that you guys don’t guide at the segment level, I was curious if you could give us some directional commentary around both sort of create and grow. Should we expect both segments to be up as one sort of up and one is flat? Just curious if there is any one bucket that’s going to be driving more of 2Q than the other. Thank you.
Jim Whitehurst: And on the plus to pro, Luis, if you want to add some commentary, I honestly couldn’t tell you versus our expectations of where that stands. I think we’re pleased with it, but I’m not sure how that plays out versus Luis, what you would.
Luis Visoso: Yes. No, we’re very happy with how customers are migrating. Particularly, we’re seeing some of our customers migrate all the way to enterprise, which is obviously better for us, better for our customers. So we’re seeing a good migration of customers up and that comes on top of the price increase we took about 18 months ago. So we’re seeing all of that come flow through the bottom-line. I think to your second question, I really want to be careful and not to guide in between the two businesses. I do expect Create to do better than Grow on the quarter and also on the year. So Create should be growing faster as you would expect, but Grow will be sequentially improving, particularly in the second half as we fix some of these gaps that we have.
