00:00I'm interested in what you told the investors, the analyst community in New York yesterday and for the next few
00:05days.
00:06How do you get to that sort of volume? Where are the growth factors?
00:10The exciting thing is that literally everything we have been working towards is coming together and working incredibly well.
00:17We held a similar event three years ago and promised investors we'll get to $50 billion of gross merchandise volume,
00:24our merchant sales that we power, and we will do so while maintaining our profit margins between 3% and
00:314%.
00:32We'll grow at 20% per year or so. That was the story we told them three years ago.
00:36We've now come back. We're now basically at that $50 billion mark.
00:39You would expect us to slow down, but instead we told our investor base yesterday we expect to grow 25
00:45% compounding,
00:46so five points extra, and we intend to up the floor of our profitability from 3% to 3.75%.
00:52So not only are we growing faster, not only are we reaching more consumers, more merchants,
00:57we intend to do this more profitably, and we feel it's just getting better and better for us.
01:01So that's the headline. And I had a lot of conversations yesterday that seemed to indicate that our investors are
01:08quite enjoying the news.
01:10Max, just very simply, why is a $100 billion volume target the right target, the right metric?
01:16When people try and understand a firm, like you come on the show often and we talk about the different
01:21offerings
01:22and some of the newer products that you're doing, this kind of North Star or achievable goal probably to your
01:27mind,
01:28it's really interesting that you've set that as it.
01:31You know, it is just a waypoint. We have absolutely no intention of slowing down or stopping at $100.
01:35It's just another nice round number that we can set our sights to.
01:38But we do see an incredible market pull. Consumers are ready. They are coming to us.
01:45We are now seeing inbounds from consumers that didn't discover us at the point of sale,
01:49which is the usual way, just signing up for a firm, asking us to send them a card so they
01:53can transact everywhere.
01:55That's been a huge pull. That's contributed to our growth tremendously.
01:58Merchants come to us saying, I've seen your logo on my competitor's sites.
02:01I know you're driving 10%, 20% more sales for them.
02:03You should do the same for us. Let us sign up. You should promote our sales events.
02:09Tell us, merchants, in your app because we're now reaching 15 million monthly consumers and so on.
02:14So just the tremendous amount of we're finally a real scalable thing that every constituent cares about a lot
02:20is what gives us the confidence to go towards this new milestone.
02:24Analysts liked it, like RBC talking about the pending industrial bank charter.
02:28That could be another strength area, the fact that you've got competitive advantage.
02:31But take us to the future and the agentic commerce future because we talk about it a lot on the
02:36show
02:36and you are already doing deals with Google.
02:39What does that look like in terms of how I'm going to be having a relationship with a firm going
02:44forward?
02:45I think it's going to be incredible.
02:46I cannot be more excited about this new AI-powered future in many different facets.
02:52As an engineer, as a coder, I love what we have today.
02:55A, as a consumer, as a buyer of complicated things, I love the help that AI provides me
03:01when I research the finer points of whatever it is that I'm after now.
03:05A firm is a great tool of buying things that are meaningful.
03:09When it matters, that's when consumers come to us.
03:11They want anything from a bicycle to a couch to an espresso machine.
03:14During those moments, you want to know that the financing choice you're making has your back,
03:19that you're not going to get hit with some unexpected fees.
03:21You know exactly when you're going to start and stop with your payments.
03:24That's what we've built.
03:26And agents just make it that much easier to bring to the end consumer.
03:31And the brand we've built allows people to trust us.
03:33The fact that we're able to partner with LLM providers allows us to be right there
03:37when consumers are searching and doing their research.
03:39So it's just an incredible incremental growth engine that we found.
03:44Max, you're again emphasizing the word built.
03:46You do that often.
03:47But how does, quickly, Max Leffichin think about M&A in a firm's future?
03:53You know, we've looked for years.
03:54We haven't found anything in the last few.
03:56So never say never.
03:57But we have so much to do just with the team that we have.
04:01It's, you know, when opportunities come up, we'll, of course, look at them.
04:04But we're very focused on building.
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