00:00The most sensible place to start is to ask why Canva is offering creative operating system.
00:07You know, what does it signal as a shift of what the platform Canva is offering?
00:13The biggest signal that I think it shifts is that we're moving between two totally different eras.
00:20So we've been in the information age now for a couple of decades.
00:23It started with personal computers, the internet came in, we had mobile computing,
00:28all of those things were about bringing information to more people.
00:34And I think as a society, we've done that really well.
00:37Information is accessible to so many more people, and it has enabled new businesses and new opportunity for folks.
00:44But in the last couple of years, we've seen a real shift in technology as AI has come to the fore.
00:50And it's offering a more fundamental shift in what we need to do as people.
00:55And we believe we're now entering what we call the imagination era.
00:59It's moving beyond just providing answers through information.
01:03And it's about vision.
01:06It's about goals.
01:07It's about what we can create with our imagination and how technologies like AI can enable that.
01:13And the creative operating system that we're launching this week here at Canva is really designed to meet people in this imagination era and give them the tools they need to bring their imagination to life, hit crazy big goals, and have a greater impact than they ever could with other tools.
01:33Cameron, the underpinning of that is design foundation model.
01:38You know, my assumption is that it's something done in-house.
01:43You have trained this model on a data set highly relevant to the operating system.
01:48Was that the clear choice as opposed to looking to a third-party model or a collection of models to underpin the OS?
01:56Yeah, the Canva design model is really critical to the creative operating system, and it enables us to provide a creative experience that's unavailable anywhere else.
02:08We did try for a couple of years to work with technology and partners that were available elsewhere.
02:15But fundamentally, there was one problem with it, and it was that those systems produce flat, static images.
02:23And when you want to tweak those images, when you want to edit them, when you want to include more stuff, it's really difficult because most of them function on one prompt box that you type into to get an image out of.
02:35And when you want to change something in that, it's really hard because you need to reprompt, it doesn't get exactly what you want, they're terrible with text, so you end up with all this garbled mess on screen.
02:46And it didn't fundamentally meet the needs of people wanting to design and create true visual content.
02:54So we kind of went back to the drawing board.
02:55We have an amazing research and development team here who have developed this model in-house, and it meets the exact needs of what people need to design with.
03:05The complexity of that from template layout through to text boxes, the fonts that you use, images that you want to incorporate, the brand that you bring that you want to express, all of that is understood by the Canva design model and can produce not only great designs, but ones that you can edit.
03:23You can take them straight into Canva, you can edit the text, you can change the colors, you can drag in your own image, and it's just like collaborating with an AI rather than prompting this mysterious system.
03:35And what about the domain of video?
03:37You know, one of the core offerings through the operating system is Video 2.0.
03:43What you just explained to me about the benefit of an in-house model, is that true also of Video 2.0?
03:50Yeah, so Video 2.0 is a real upgrade.
03:53We've already had 2 billion videos created on Canva to date, but we've consistently gotten lots of feature requests from users.
04:03They want both more simplicity but also more detail in their video editing, and Video 2.0 is tackling that from a user-first perspective as well as an AI-first perspective.
04:15So we have Magic Video now, which on your mobile phone, you can point it at any content that you have, whether that's images or video.
04:24You can put in two images, you can put in 20 images.
04:28It will figure out how to best represent that as the most awesome video content that you can produce.
04:34And it does so with a couple of clicks and a few seconds.
04:38So that's the simple end of the spectrum, is quickly enabling people to get their content into a video.
04:43And then at the more detailed end of the spectrum, we've got an entire editing suite that you can now put your videos through.
04:51And it gives you all the animations, effects, transitions, layering, text, video images that you want to do when you want to get deep into a video.
05:01Both of these two things work together.
05:03So when you produce a Magic Video AI generated, you can edit it in a detailed product.
05:09And vice versa, if you start in a detailed product, you can use AI to help you generate other aspects of it.
05:15You and honestly, your peers, right?
05:20Like I think Canva would be quick to say this is a world first and sort of unparalleled offering.
05:26But if you accept that, for example, Adobe is offering similar tools, the major concern right now in the realm of AI generated content is the copyright consideration.
05:36Do you kind of feel like having the model trained in-house and offering it through the OS in this way is a sort of copyright benefit or a protection against that risk?
05:49It's definitely an advantage.
05:50And we think deeply about the data that we use and how we go about training our models.
05:56We're all about transparency.
05:58So every interaction you have with AI can be controlled in Canva.
06:03We give you all the switches and levers you need to say this data can be used, this data can't be used.
06:08And in terms of copyright, we actually offer indemnity for that for our enterprise users.
06:14So as they're using Canva, they get the benefit of what we call Canva Shield, which means that any content that they generate through any of our AI systems, we indemnify them for any copyright that might arise from that.
06:29Although we've never had any problems and we don't foresee any.
06:35I think it's really important to sort of acknowledge there is a big body of the technology industry that are like more relaxed now about the copyright issue.
06:44Copyright concerns are kind of fading.
06:46Brings us back to the idea that in the future, there are alternative models out there, third party models.
06:51Is Canva flexible to kind of update its stack on the run?
06:56You know, if a model becomes available that can improve the operating system, you would be able and nimble to integrate it into what you're doing.
07:05Yeah, entirely.
07:06We've always taken a three-pronged approach.
07:08So we love partnering with the world's best.
07:12We're some of the first people that OpenAI, Anthropic, Google call on when they want to innovate with the models that they're producing and kind of collaborate with us to create an amazing experience.
07:25On top of that, we're also building amazing research and development in-house.
07:29The Canva design model is a great example of that.
07:33And we're constantly developing those models inside Canva.
07:36I think we now have over 100 different models inside Canva that are deployed through the product.
07:42And then the third pillar is creating a great ecosystem.
07:45We know a tremendous number of developers also want to build on Canva.
07:49They want to bring their technology into Canva because we now have 260 million people that use the product.
07:55So it's an amazing channel for them.
07:57So we've also built out an amazing ecosystem of apps and data integrations that also power Canva from third parties.
08:06How are you going to charge for this?
08:09What's the pricing structure for a creative operating system?
08:14So we always believe in continuing to add more value to what people are already doing.
08:22So most of this is already available through people's Canva Pro subscriptions.
08:27So if they're already subscribed to Canva, they get pretty much all of this straight out of the box.
08:33We're introducing also a new Canva business tier, which brings a lot more AI power to people's work, as well as stuff like Canva Grow, which we're also launching this week, which is an entire marketing engine inside Canva.
08:49And that's one of my most exciting features personally that we're launching this week.
08:55And then we also have our Canada enterprise tier.
08:57So for those folks who have already deployed or are thinking of deploying Canva organization wide, they also get access to everything that's in Canva Pro, as well as what they need to operate the creative operating system at scale across their organization, between their brand team, their sales team, their marketing team, their internal communications team.
09:20Everyone gets the benefits of collaboration and a brand that is entirely on message, using the same tone of voice and scaled quality in everything they produce.
09:34Cameron, you are a co-founder of this company.
09:38The eagle eyed out there will notice that earlier this month, the finance team started posting roles like socks manager and business risk managers.
09:48Those are the kind of internal audit jobs a company starts hiring for before they file to go public.
09:53Any update?
09:56Finance team are always thinking about IPO readiness.
10:00We want to be a company that has great governance and great fundamentals.
10:06But I would not take that as a signal that IPO is happening tomorrow.
10:10It's sometime on the horizon, but it's not a priority for us right now.
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