That’s been true for many, many years. And then through this fairly subtle world of seasonality where the fourth quarter can be 10% and 15% higher than the third quarter, that type of outcome. What you €“ what we did is we drove a truck through it like three different ways. COVID, work from home, issues around a recession. And so it’s been very hard to read the underlying signal. Again, which is why we’re emphasizing right now, what we’re seeing is really strong consumer engagement in games, really strong pipeline outside of games and Create, stabilization in the ads business based on strong consumer engagement and slightly weaker eCPMs, which is typical of a recessionary period around which you some €“ we recover at some point. So we’ve been trying to keep you as much of that understanding as we can.
We see a lot of data. We’ve modeled the heck out of it and we understand it, we think pretty darn well, but it is definitely a challenging time to sort of be an econometric type person in this space.
Mario Lu: Great. That’s very helpful. And maybe just a quick follow-up. In terms of the commentary of the game as market being approximately down 10% this year, year-on-year. That’s some other companies are saying it’s stabilizing to improving. But is your point, just the first half is just a very tough comp.
John Riccitiello: So precisely, you’ve got that right. So we’ve added more color than others. Yes, it’s stabilized for the middle of last year. The beginning of last year was exceptionally strong. And so the market in the first quarter of last year was up in the mid-20s in terms of growth, in terms of sort of served advertising business in the first quarter across the industry. So when we’re looking at stabilization from the middle of last year, what it is in the first half of 2023 was we’re lapping a stronger period. Even though it’s stable, we’re lapping a stronger period. In the second half of this year, we’re not forecasting recovery, we’re now going to be comparing to the second half of 2022, which was flatter. It wasn’t as strong.
And so we’re going to get €“ if you want to think about it, the first half of the year, call it, down and the second half of the year, call it flat. So that’s where we get to minus 10% in aggregate if you’re modeling the whole year. We’re saying exactly the same thing. The market is stabilized. We’re adding the added color that the year-over-year indexes for total served ads will be down in the first and second quarter. It’s year-over-year versus a quarter-over-quarter view, Mario.
Mario Lu: That’s very helpful. Thank you guys.
Richard Davis: Great. Parker Lane.
Unidentified Analyst: Great. Thanks for taking the question guys. Luis, circling back to net expansion rates for a moment. I was wondering if you can give us a qualitative sense of how Grow is compared to Create recently? And then if I look at the non-gaming segment in particular, what impact and future impact do you expect from the introduction of new pricing initiatives and perhaps consumption models on the non-gaming side? How much of a tailwind can that be to expansion going forward?
Luis Visoso: Yes. So if I look at the Create side, the net expansion rate has been fairly stable and very healthy, right? So the reductions that you’ve seen over the last two quarters have come mainly from the Grow side. And we talked that before in the last quarter, and what we’re seeing in this quarter is fairly consistent with that. The pricing that we’ve taken €“ so to your second question, the pricing that we’re taken is mostly on the game side, right? The non-gaming side of the business has really different business models, different monetization models and we keep on improving how we monetize each of our customers. But it’s €“ the pricing plans that we’ve talked in the last call have mainly focused on the gaming side.
