John Riccitiello: Look, first off, if you want to know what drives me as the CEO to with prioritization. It’s at this company, it’s a very rich conversation between Luis and me and the principal C-level officers looking at the opportunity in front of us. Now one of the things that have been frustrating is we’ve shifted from a go-go market to a tough recessionary environment and the market correction in the second place, is there were programs that we liked in a different economic environment that are no longer funded. An example of that is, what we’re doing with sports and live entertainment. It’s a beautiful technology that customers want. But we deprioritized that in a different economic environment, and there were several other things that we did that were like that.
Now we didn’t de-prioritize Weta, because there’s already a meaningful revenue stream there, and there’s a meaningful and a very great opportunity for that run professional artistry to grow a bigger and better business. And remember, most creators in the world are not coders, they’re artists. They want those artist tools. So that made the cut for us. But in general, I would tell you that if you look at our two businesses, create and grow. Grow is a business where the engineering cycles for product development are typically inside a couple of quarters and certainly inside of a year. Many times, on the create side, the creation cycle for meaningful new technology can be multiple years, certainly multiple quarters. So for example, when we created the digital twin platform that will allow us to generate ratable revenue, cloud-based revenue for Digital Twins, that was 18 months in process.
And so we have to look at them through a different lens in terms of ROI timeframe. Now the reason we invested in the cloud platform for Digital Twins and the very similar thing around UGS for games is because we believe in the fullness of time. The best way to drive revenue for Unity on create is through the addition of ratable revenue streams based on usage. We’re already paid by the seat for people creating things. We were looking for a second revenue stream and in solving a major problem for our customers. And so when we look at our businesses today, things like LevelPlay and our ad networks are profitable, our core games businesses, a lot of things are very profitable for us. Some remain in that investment. And we prioritize them based on what we believe to be strong ROI thresholds.
Now personally, I’m from the gaming industry. I’ve spent decades in the gaming industry. I am intellectually in love with Digital Twins. I’m emotionally connected to games. But our resource allocation isn’t based on emotion. It’s based on math. And we look hard at it in this environment to make sure we’re making the right investments for the right ROI, which is how and why we’re reporting even with modest revenue growth, really strong profit growth year-over-year. We think that’s important. We prioritize that, and we’re going to deliver that.
Richard Davis: Great. All right. Well, thank you so much. We got done a little bit late, but that was pretty quick and efficient. So thank you all, and we’ll hope to see you on the road or at various conferences. Thanks a lot.
John Riccitiello: Thanks all.
Operator: Good Bye.
