JMT on How to use external users in SharePoint Online (with a cost-free Azure Active Directory)

Did I understand correctly ? 1- create user in AAD with his Professional email address Smith@company-work.com 2 - send confirmation link to that address, so that Smith could validate his account 3 - invite Smith to join SPO site using his Professional email address Smith@company-work.com; of course you previously have managed all options in your tenant and site collection regarding external users & invitations. Unfortunately, I am afraid having missed something, eg using an Outlook.com in the process