Ladies and gentlemen, thank you for standing by, and welcome to the Sprout Social's Third Quarter 2020 Earnings Conference Call. [Operator Instructions]. I would now like to hand the conference over to your first speaker today, to Mr. Jason Rechel, Head of Investor Relations. Thank you. Please go ahead, sir.

Thank you, Operator. And welcome to Sprout Social's Third Quarter 2020 Earnings Conference Call. We will be discussing the results announced in our press release issued after the market closed today. With me are Sprout Social's CEO, Justyn Howard; CFO, Joe Del Preto; and Senior Vice President of Global Sales, Ryan Barretto. Today's call will contain forward-looking statements which are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements include statements concerning financial and business trends, our expected future business and financial performance and financial condition, our guidance for the fourth quarter of 2020 and the full year 2020, and can be identified by words such as expect, anticipate, intend, plan, believe, seek or will. These statements reflect our views as of today only, should not be relied upon as representing our views at any subsequent date, and we do not undertake any duty to update these statements. Forward-looking statements address matters that are subject to risks and uncertainties that could cause actual results to differ materially. For a discussion of the risks and other important factors that could affect our actual results, including potential disruption from COVID-19, please refer to our annual report on Form 10-K filed with the Securities and Exchange Commission, our quarterly report 10-Q to be filed with the SEC and our other periodic filings with the SEC. During the call, we will also discuss certain non-GAAP financial measures which are not prepared in accordance with generally accepted accounting principles. A reconciliation of each of these non-GAAP financial measures to the most directly comparable GAAP financial measures is included in our earnings press release, which has been furnished to the SEC and is also available on our website at investors.sproutsocial.com. And with that, let me turn the call over to Justyn.

Thank you, Jason, and good afternoon, everyone. Thank you for joining us. As difficult as things have been this year, I hope you've all been able to stay healthy and productive. On our side, Sprout Social again delivered a strong quarter across the board, setting multiple new quarterly records. We're grateful to our team for executing remarkably well, and we're excited to share that our plan for 2020 is now well ahead of our prior guidance. Our mission is straightforward. We believe social sits firmly at the center of the brand customer relationship and is rapidly becoming the most powerful channel to win, serve and connect with audiences. Our software platform is powerful, elegant and easy to deploy across businesses of all sizes. We give small businesses the ability to punch well above their weight and large enterprises the power, agility and efficiency to delight their customers at scale. We have made it increasingly easy to standardize on Sprout as the centralized system of record for social and to help our customers maximize the value of this mission-critical channel across the entirety of their organization. Digital transformation has become the top priority for brands across the globe. Social communication is fundamentally more important than at any time in our company's history. And it sits at the center of this new digital technology stack that includes social publishing, engagement, customer service, care, commerce and business intelligence. We are perfectly positioned to help our customers thrive in this new reality. This quarter, more customers than ever invested in Sprout, and we're not slowing down. I want to spend a moment upfront today on culture, which has been fundamental to our success. With all of the curves 2020 has thrown at us and the rapid pace of evolution our customers are facing, our…

Thanks, Justyn, and thanks again to everyone for joining us today. I was blown away by the performance of our team this quarter. We set new records in several key areas, and emerging trends like social listening, social care and social commerce have us well positioned to continue delivering in the period ahead. Our opportunity is large and getting larger, and our team is executing incredibly well. Customers continue to turn to Sprout with acute needs and a heightened sense of urgency to transform their organizations. In Q3, we set records across the sales, success, support and services teams. Our success and support teams, in particular, delivered new records for quarterly CSAT, and that was done with larger volumes and larger projects. The customer review site, TrustRadius, recognized us with a Tech Cares award for our outstanding support of marketing teams during this pandemic. As you know, our unique focus on customer success is a point of pride for our company and a compelling differentiator. With in-person events on hold, we shifted marketing efforts to digital, and our Sprout Summit in September was a huge success with over 9,000 registered. If you attended the event, you heard speakers emphasize the importance of brand authenticity to remain compelling; about the importance of listening to the voice of your customers; and the structural changes that occurred as marketing, customer care and commerce all went digital. During the summit, I had the pleasure of interviewing Dara Treseder, the amazing Head of Marketing at Peloton. Dara encouraged our marketing peers to really embrace the power of social media and social data as she saw these insights is critical in building product road maps and business strategy. Now turning to the sales performance. All segments of our business were very strong this quarter, but I…

Thanks, Ryan. I'll now walk you through our third quarter results in detail before moving on to guidance for the fourth quarter and full year 2020. Total revenue for the third quarter was $33.7 million, representing 27% year-over-year growth. Excluding the impact from legacy Simply Measured, organic revenue was up 34% year-over-year. Total ARR exiting Q3 was $141.9 million, up 30% year-over-year. Organic ARR was $140.6 million, up 35% year-over-year. We achieved record net new ARR with health in both new business and retention. We added 1,200 net new customers in Q3 to finish the quarter with 25,556 customers, up 11% year-over-year. This quarterly net adds record is a reflection of strength across all market segments. Further, we saw an improved mix of both total customers and total ARR, landing with us on annual or multiyear subscriptions, which has notably positive implications on our long-term economics and speaks to the quality of this impressive new customer cohort. I do want to reiterate that as you have seen so far this year, net adds historically can be lumpy on a quarterly basis, and we remain focused on long-term double-digit customer growth, focus on high-quality unit economics. The number of customers contributing more than $10,000 in ARR reached 2,790, up 42% from a year ago and up from 2,544 in Q2 2020. Listening and premium analytics ARR continue to grow over 100% year-over-year. We are pleased in our greater than $10,000 customers who are now a record 11% of our total customer base. But even more importantly, these larger customers are growing even larger. This was evidenced by consistent 17% annual ACV growth as we onboarded a record number of new customers. In discussing the remainder of the income statement, please note that unless otherwise stated, all references to our expenses, operating…

[Operator Instructions]. I show our first question comes from the line of Rob Oliver from Baird.

Great. Just first one on the really strong rebound in net customer adds this quarter. Just curious what you guys saw in there. Obviously, post COVID, there was -- were some people who had put some projects on hold. Were these customers that had kind of been in the trial motion for a while with you guys? Or was this just sort of a continuation of the trends you guys called out last quarter where things were getting progressively better each month? And then I had a quick follow-up.

Yes. Thanks, Rob. This is Justyn. You cut out for a moment when you're addressing the question, so I wasn't sure if you'd address that to me or to Joe. But I'll tell you, it's really consistent with what we had called out last quarter, which was after that period at the end of March and into April, where we saw some compression on the net new adds, we've really started to see it rebound pretty quickly. And it looked healthy really from the tail end of that quarter all the way through the third quarter. And so it doesn't seem to be as much of a factor, if at all, of kind of pent-up demand that's spilled over, more of just a consistent trend line from what we saw in the second half of Q2 through Q3.

All right. That's really helpful. And then, Joe, just a very quick follow-up for you on the increase in the ACV growth. Obviously, really good to see important metric. What -- aside from the fact that you guys highlighted you're moving upmarket nicely with these Fortune company wins, what are some of the components within that? Is it just larger lands? Or are you guys seeing some of the newer products such as premium analytics and listening start to kick in?

Yes. Great question, Rob. I think what you're seeing is a combination of those. As we are landing these new customers at higher ACVs, especially when we're upmarket, they're definitely landing with 1 or 2 of these premium modules. So it's a great combination of not only getting more upmarket but adding these additional modules. And then on top of that, we saw not just on the higher end, but we saw just overall kind of strong ACV improvement across our net adds and then overall customer base. We're just seeing a lot of overall momentum in the business right now.

I show our next question comes from the line of Stan Zlotsky from Morgan Stanley.

Perfect. Maybe the first one from us. Obviously, when the pandemic first started, we heard a lot of stories of people -- companies having to furlough their people or straight up fire their people. Are you -- what are you seeing within your customers? How are they doing as far as returning their own spend with you back to their pre-COVID levels? And I have a quick follow-up.

Yes. Sure. Thanks, Dan. This is Justyn. I think what we've seen has been interesting. And I think this started kind of immediately, is the impacts of COVID started to take hold, which was that social hasn't really been on the chopping block in terms of the conversations that we've had with our customers. It's felt like an area that was going to be one of the last ones to really take that hit as businesses really needed to maintain that channel to be engaging with their customers and to be positioning themselves for the recovery. And so we didn't see a lot of that happen in our space. I think, certainly, as things have settled down and people have gotten into kind of the way of doing things, we've seen more engagement around longer-term thinking and larger deals and things like that. But from a resource perspective, it hasn't really felt concerning for us.

Got it. Got it. That's very helpful. And then as far as just -- and I apologize if this is already asked. I'm jumping between conference calls here. But can you give us an update on how your add-on products are doing and especially some of the newer ones like analytics and listening? I'd appreciate that.

Stan, it's Ryan Barretto. Thanks for the question. The add-on products continue to be a really strong part of our sales motion today, both from a new perspective as well as ACV growth perspective from our current customers. On the new business side, the lands especially with the sophisticated customers, which tend to be in the mid-market and enterprise but not limited as we see this in SMB and agency as well, they're coming in with needs around data. They want to understand their own data and which campaigns are working and how they're responding to customers. But they're also trying to tap into the voice of the customer and the customer that they don't have through a social listening data. So continue to see strength in both of those products. And then the reputation product has been really great for us as well. You heard it during our presentation at the beginning, the add of Glassdoor. We're seeing more and more that customers want to do all these things together, not just what you think of as traditional social, but things like review sites and brand and employer review sites as well. So all of those contributing really well to our growing ACVs.

Our next question comes from the line of Matt VanVliet from BTIG.

I wanted to dig in maybe just a little bit more on what you're seeing, especially from expansion deals. It seemed like coming out of summit that social is becoming much more of a key component of the overall marketing strategy and no longer just kind of its own entity. But curious how you're doing, especially kind of expanding seats along with upselling, but just kind of what that trend has looked like. As more and more commerce has moved on to digital platforms and you're losing that sort of in-person engagement, how companies are approaching that.

Thanks, Matt. This is Ryan. Yes. I mean we've seen a lot of strength within this area, and it certainly evolved over time as the market has matured. When I started at Sprout four years ago, you'd typically be selling to the social media manager. And today, that's evolved into a team of social media managers. It's evolved into not just social media but across the entire marketing department, where you see people from PR and comms and brand and content. And with the addition of our premium analytics and listening, we are getting exposure to other parts of the business, which might range from social customer care to our analysts that are looking for data to make business decisions on. So the expansion has moved beyond just the typical user. And more and more, our customers are realizing that this data that exists through social has a ton of potential for them in making business decisions, right, understanding which markets they could be going into, getting a better handle on how their products are being perceived within the marketplace, identifying what their competitors are doing and helping them differentiate in their go-to-market motion. So all those things have really contributed to the success with the expansion. And for us, if we think about our go-to-market strategy, we really added on to the product suite over the last 24 months with listening and analytics and reputation. So really good progress on all of those fronts and continuing to see really good strength from our growth teams.

And a follow-up, Joe, you mentioned that you're a little behind in terms of hiring in the quarter. Just wanted to get a little clarification. Did you exit the quarter pretty much on plan and we should expect a relatively full run rate in the fourth quarter? Or did you -- did some of those hirings spill over into October and even the last couple of weeks?

Yes. Once we saw the momentum coming out of Q2 and in early Q3, we really wanted to increase the investment in the sales and marketing hiring side. And so we didn't get all those hirings in Q3. We had a pretty aggressive plan. So some of that will spill into Q4, and we're definitely going to continue to invest in that area, especially heading into 2021. And so given the momentum in that business, you can expect us to keep investing in that area, Matt.

Our next question comes from the line of Chris Merwin from Goldman Sachs.

Okay. You talked about strength in the enterprise segment this quarter, and you called out, I think, your largest one ever. And I was wondering if you could talk a bit more about that deal. What did it include in terms of modules? Did it include users outside of the marketing department? Just trying to think through how this large deal could foreshadow some future large wins in the enterprise segment.

Thanks for the question, Chris. This is Ryan. Yes, that large deal included a few things. So it included users from a variety of different departments. Similar to the question before with Matt, it's not just the marketing department that we're touching today. We're touching places like social customer care. Oftentimes, it's getting into other departments that are leveraging the data, both from an analytics and social listening perspective. So in this circumstance, we're talking about dozens of users, premium add-ons, including analytics and listening as well.

Okay. Great. And just a follow-up about the integrations. You called out a number of new ones this quarter, Dynamics, Zendesk, HubSpot. How should we think about the impact of these integrations to the platform? Does this help with data sharing with these other systems? And maybe that contributes to the analytics product? Or does it help with larger customers who maybe have some of these systems and require them to become a customer? Just want to -- just curious how we should think about the integration as being a tailwind, I guess, to new logo growth or retention?

Yes. This is Justyn. So really, what we're seeing here is similar to some of the conversations we've already had. Social is really expanding quickly across the organization, expanding well beyond the marketing department. And where we find ourselves and where our customers find themselves is that it is critical that they've got a centralized system of record for social media management. There are a lot of existing processes that simply can't be replicated in other systems of record. And so this primarily allows us to both bring data in and expose data out into some of those other platforms where some of those workflows are taking place. And from a tailwinds perspective, this gives us the opportunity to start to think about some of those additional use cases, start to get into some more of those sophisticated use cases outside of the marketing organization and really just help our customers solve more of their problems than we've been able to do in the past. And that's been a recipe for success for us thus far, and we think it's going to be even more so. And not only that, but certainly, the more that we're able to help them kind of evolve a lot of their processes at social is upending most of the business. That's an opportunity for us to create a pretty sticky and expanding relationship with those customers.

I show our next question comes from the line of Raimo Lenschow from Barclays.

Thanks for fitting me in. You talked about the strength in kind of more of the larger customers. Can you just -- and Chris just asked about the largest deal in the quarter. Can you talk a little bit about what's driving it? Historically, you've -- there are other players that were kind of more playing up in the upper part of the market with more handholding, et cetera. Is the -- I'm just trying to understand what's driving the strength now. Is -- do you think the customer base is kind of understanding your automated offering better? Is it the strength of the add-on modules that are driving it? Just talk to that a little bit, and then I had a follow-up.

Yes. Raimo, this is Ryan. There's definitely a few things in play here. One, the additional products that we've added to the platform over the last 24 months in listening and analytics and reputation are perfectly suited for these sophisticated customers. They want to do all of these things in one space with one vendor, and we fit the bill for them. So that's definitely a big driver for us. And the value of that is not just that you check the box, but that it's easy to use, it's powerful, and it's scalable. And that's certainly what we're hearing from our customer base. There's an element, too, of educating the marketplace. And our brand is certainly doing very well within enterprise. Related to this, and we've mentioned this on a few other calls, but the power of the trial is just a huge differentiator for us, and it's very disruptive for the upmarket competitors. We believe in try before you buy. We believe that's the modern way of evaluating and buying software. And we're getting these enterprise customers to leverage the product before they sign a contract. And conversely, when they go back to the other competitors that they're looking at, most of them are only set up to do demos. And in this remote environment that we're living in today, and I think we're all feeling like we'll at least be in a hybrid state in the future, that means that we have a big competitive advantage in getting customers to get into the product, experience Sprout, experience not just the technology but our people. And that's just been highly disruptive for the competitive set.

Okay. Perfect. And then I had a follow-up for Joe. As you kind of now -- we're kind of in the planning stages for next year, and I don't want guidance from you, but like how do we think about like this new world that we are living in with kind of less travel, which kind of saves you money, but on the other hand, kind of in theory, it frees up for more kind of lead generation -- different types of lead generation activities, et cetera. Like how -- where are you guys coming out between like showing kind of leverage faster versus kind of using the opportunity to kind of maybe kind of use different channels to kind of speed up the momentum that you have?

Yes. Thanks, Raimo. I think without obviously giving guidance for next year, I think what you'll see from us, as you've seen historically, is when we see things working and our sales and marketing investments are returning the kind of unit economics that they have, we're going to continue to invest in those areas. But at the same token, you've seen for several years now year-over-year improvement in our operating margins. And so I think you can expect a similar trend. You'll continue to see us invest in this business, especially for growth. But at the same token, you can also assume that we will be driving margins down going forward, and we'll be constantly making that decision and balancing those 2 things going forward.

I show our next question comes from the line of David Hynes from Canaccord.

Congrats on the strong results. Obviously, really high quality wins, right? I think we talked a lot about the large deals. I want to ask a question on the quantity, right? 1,200 net adds is really impressive. So I'm curious, is it being driven by material improvement in conversion rates on the trial activity? Or are you just seeing explosion in kind of top of the funnel trial activity?

Yes. Thanks for the question. This is Justyn. I think it's a handful of things. And I think it's a handful of things that have been true coming into this year and certainly in the early part of this year, saw some headwinds in March and April. But the net adds were not that much of an anomaly for us. Absent COVID, you would have seen, I think, the contrast between Q2 and Q3 net adds would not have been as dramatic as it is. But it's a function of the top of the funnel. It's a function of the sales team just doing a fantastic job converting. And it's a function of the logo retention and the improvements that we've seen there and really having a compelling value statement, as Ryan mentioned before, in every part of the market, SMB up through enterprise. And it's just consistency across the organization that we've seen in the last 3, 4 months with all of those things operating as we hoped that they would be and expected them to be coming into the year.

Yes. Yes. Makes sense. And then maybe one for Ryan on kind of the new products and the cross-sell/upsell opportunity. I guess I'm curious, if you kind of had to rank the 3, right, listening, reputation and analytics kind of against your internal expectations, which has done the best and which has maybe taken a little bit longer than you would have expected?

Yes. I would say listening continues to be the one that we are seeing just over-delivery from. And I think it's a couple of things there. One, from an enterprise perspective, so many of those customers that are showing up have that expectation. But traditionally, those solutions have been incredibly hard to use. And the marketers that actually want the data can't usually get it. They're usually reliant on a consultant from the vendor that they bought from or somebody who's highly technical inside the organization. And so the fact that we can actually help them get into the data for them to be able to run their own listening reports is incredibly powerful. And the fact that listening sits alongside publishing, it means that the insights that they find, they can immediately use within the product. So that's certainly one piece. I think on the other side, I would say probably reputation, and reputation only because it's one of those areas that we're continuing to add to. So we've got some really great stuff in there today with TripAdvisor and Google My Business, and we've added Glassdoor. I think for us, we'll continue to contribute to that. And as we continue to contribute to that product, I think it's going to be very dangerous. But overall, I would just say, we're pretty excited about all of those things, and our growth teams are doing really well selling all those products to our current customers as well as landing new customers with more than 1 product.

Yes. Yes. Makes sense. It's a bit of an unfair question. It's like asking to choose your favorite child, right? So I appreciate the color.

I'd never say that one out loud.

Our next question comes from the line of Arjun Bhatia from William Blair.

You talked about some of the sales investments you're making. I would just love to maybe dig in on some of the granularity on where you're making those investments on the sales and marketing side. Is it expansion? Is it new customers, SMB, mid-market? Would just love to hear some of those details.

Yes. Arjun, it's Ryan. Thanks for the question. There's a few different areas. Maybe from the marketing side, I'll start. We continue to invest a lot in content. If you do any searches out there about social, you're likely going to run into some amazing Sprout content, whether it be the Sprout Social Index or detail that we've been providing around insights that have happened during COVID. Whatever it may be, we've built content that's fantastic for the practitioner or the executive, and that content is working, right? We've got this really impressive inbound engine that's driving a tremendous amount of trials and leads, and we want people on the product. So that inbound engine continues to be something that we are investing in through content. And we've really increased the throughput on the amount of content that we're delivering. From a sales perspective, the area that I'd highlight -- there's a bunch of different areas, but the one that stands out is just within our enterprise team. We mentioned, I think it was coming out of the first quarter, we saw a huge opportunity in enterprise. We shifted some of our resources both from a marketing perspective and an outbound prospecting perspective to focusing on enterprise. We got out of the gates really fast with hiring our enterprise reps. And we are just continuing to see the dividends pay off there. There's lots of opportunity in the marketplace. The reps within that team are executing incredibly well. And we feel good about all the segments. And all of our teams did really well this quarter, but those would be the 2 that I'd highlight.

Perfect. That's very helpful color. And then maybe one for Joe. I just wanted to touch on gross margins a little bit. I know there was a few moving pieces. It seems like Simply Measured has rolled off. At the same time, I think you said you've added maybe 8 new integrations. Is there any impact from those on gross margin that we should factor in? And then from the Simply Measured piece, are we at a more kind of steady gross margin rate now when we think about future years?

Yes. Good question, Arjun. I think what you can assume with the integrations and then with the Simply Measured impact is you'll continue to see, over the next couple of quarters, a modest improvement on margin. So I don't think that we're at a steady state. I definitely think you'll see improvement, but I don't think it's going to be anything significant from those 2 things.

Our next question comes from the line of Tom Roderick from Stifel.

Great to hear from you. Let me throw the first one here to both Ryan and Justyn, and you guys can tackle it collectively, I guess. But I think, Ryan, you had some comments on the call just regarding -- feeling that there's a heightened sense of market urgency out there. And we've seen some tremendous monetization efforts on social platforms that are sort of nontraditional platforms, if I think about Snapchat and Pinterest more recently, Twitter on the monetization side still doing very well. So a little bit of an odd point in time where the advertising efforts are coming in very strong. But as that happens, I'm wondering if that sort of drives a little extra demand for social media management platform, for the need for something like a spread to manage multiple platforms. And just broadly, I'd love to hear you talk a little bit more about what it is you're seeing in the market that's driving that heightened sense of urgency.

Yes. So this is Justyn. I'll start. I think -- and this has been true dating back to when we got started, every year, there's more and more places that our customers need to be present and engaged and be keeping an eye on and be keeping -- and communicating with our customers. And to that extent, the fact that there are some breakout successes around the edges of kind of the big players in social definitely compounds in a pretty exponential way the need for centralized management. I think that's something -- when you look at our ACV growth historically and how consistent that's been a driving force there, there's more networks to manage. There's some multiple number of additional profiles. There's more people involved, and we're starting to see more departments and more use cases involved. And so that is a pretty powerful ingredient. I think that the demand is -- and I think we've all felt this over a couple of quarters now, but there is just this big shift. And there were a lot of folks who felt like this might be coming further into the future or that they have more time to think about how to evolve and what their organizations and their marketing and customer engagement efforts needed to look like 5, 10 years from now. And the reality is that it's upon us. They've got to get it figured out. And I think we're far enough into -- we've been working on this problem for 10 years. And it's sometimes easy to lose sight, but there's a lot of organizations that are just kind of getting started or just tackling the basics where they're hitting that next level of investment, that next level of prioritization for social, which is going to look very different. And I think that's another big driver for us.

Yes. That's really, really helpful commentary. That's great. And Joe, follow-on just on the financial side. Appreciate that the metrics are really accelerating in the right direction. So I look at ARR accelerating; your total revenue growth -- organic revenue growth accelerating. Can you just unpack the metrics underneath that, just a little bit more with respect to what you saw on customer or dollar churn, net dollar retention, understanding you don't necessarily want to give those out every single quarter? But directionally, particularly on the churn side, it was really important to hear that last quarter, that, that was coming back. Where are you at -- what do you see on that front now?

Yes. Great question, Tom. What -- obviously, we don't give that data out on a quarterly basis, but we'll give it out at the end of the year. But I think what we're seeing -- and it kind of is a reflection of what Ryan said earlier about our net add maybe with Justyn. Net adds is a combination of not only the record number we saw, not only strength at the top of the funnel in new business but also overall strength in our existing customer base and able to retain those existing customers. And so we're seeing a lot of momentum on that front. The customers that are coming in are coming at much larger dollar values. And those customers historically have been our biggest growers, our highest retention. On top of that, in my remarks, I talked about how we had the annual contracts and longer-term contracts are becoming over 50% of our new deals coming in. And so as we look forward into the coming years, we just think we're building an overall kind of stronger customer base. And because of that, we just feel like we have upside going forward on overall retention of this business.

I show our next question comes from the line of Scott Berg from Needham & Company.

Sorry about that. This is Alex on for Scott. On the platform usage side, what are you seeing in terms of usage or engagement stats now there were a few quarters into COVID compared to what you're seeing pre COVID?

Yes. This is Justyn. I'll take a stab at that. I think we've seen sort of consumer behavior and usage patterns similar with what the networks themselves reported. I think one of the things that's been interesting is kind of a secondary story line. In addition to the increased volume, it's just the types of things that consumers are doing on the networks and what that engagement amounts to. And what I mean by that is it is -- and this has also been consistent for several years. It is much more likely today than it was 9 months ago or 3 years ago, that those users are engaging with brands, engaging with brand content, reaching out, sharing opinions on products, et cetera. So it's not just the volume, and I think the networks have done a good job kind of sharing what that dynamic has looked like. But it's the types of conversations and the amount of engagement happening for the brands that's really different. And it's something that we think, particularly as -- we faced an environment where for the last probably year or 2, a lot of the discourse on the networks has changed and has -- there's been a lot of focus on political commentary, et cetera. If that starts to subside, I think you're going to see even more of that organic communication. And that's going to be something that's very powerful kind of dynamic shift, not only for the brands but potentially for advertisers as well.

I show our last question comes from the line of Brett Knoblauch from Berenberg Capital Markets.

I was just curious if you could try to update on what you're seeing internationally and how those dynamics are similar or progressing relative to maybe the domestic markets?

Brett, this is Ryan. We feel really good about the international markets. As you may remember, we opened up our first international office in EMEA, specifically in Dublin in 2019. We've seen that team execute incredibly well there. It certainly helps having a team on the ground, building relationships locally, doing some local marketing. So progress has been really good there. We see the same thing across APAC, ANZ and the Latin America market as well. So our top of funnel has been really healthy there, and we feel really good about the conversion rates and the customer adds within those markets. We know many of those markets, especially in EMEA, they have started to shut down again. But so far, we feel really good about just the progress that we've seen from that team and continue to see that as we ended the quarter.

This concludes the Q&A session. At this time, I'd like to turn the call back over to Mr. Justyn Howard, CEO and Co-Founder, for closing remarks.

Yes. Great. Thank you so much. And thanks again, everyone, for your time. We enjoy spending some time with you this afternoon. We'll be doing a bit more of that in the coming months, attending a handful of events and just always appreciate the engagement and the questions. I want to close just with a thanks again to our employees and our customers and our partners. The work that's been done in this organization over the last couple of quarters in the face of a lot of curveballs has just been remarkable to watch, and we're so grateful. And we look forward to catching up with all of you again soon. Thanks.

Ladies and gentlemen, this concludes today's conference call. Thank you for participating. You may now disconnect.