Bill Zerella: Yes. I mean, I’m not sure if I would look at it as one-time. And that we’re going to be spending money for the integration through the end of this year. It’ll certainly dip into next year. That said, as we scale the business, we’re going to continue to get OpEx leverage as we approach our mid-term targets across the P&L, right, as we get more scale. So as we drive towards those targets, you are going to see leverage throughout the P&L right, from kind of revenue margin down through OpEx. So we’re essentially going to get that leverage, but that doesn’t necessarily mean we’re going to incur kind of one-time costs that are just going to go away, since most of this is labor, right, because it’s product development by the engineering teams.
So it’s – I’m not sure I would look at it as per se one-time. But we’ll certainly get the leverage and continue to get the leverage like we’ve demonstrated in the past, and we’ll continue to get that going forward as we scale.
Rajat Gupta : Understood. Thanks for all the color and taking the questions.
George Chamoun: Thank you.
Operator: The next question we have is from Nick Jones of Citizens GMP. Please go ahead.
Nick Jones : Great. Thanks for taking my questions guys. As you look to land more rooftops and you are having those conversations with those dealers, how much of a factor is kind of the lower wholesale volume potentially in their reluctance to get on, just because maybe they don’t feel the need or the pressure to diversify? To the extent that that is part of the conversation, things do start to improve in the back half and into next year. How well-positioned is ACV to kind of accelerate landing rooftops while also kind of winning share in existing rooftops?
George Chamoun: Yeah Nick, that’s a really good question and maybe one I wasn’t prepared, but I’ll do it on the fly. I think you are really pointing out an interesting topic, and that’s that dealers have less to wholesale. So it’s really not the top of mind, right. They are really, they are trying to source more and trying to buy more from consumers. So your question, which I’ll put back in the statement, is interesting. We could see a tailwind. As wholesale starts to come back, we start to see a conversion. I guess my initial gut reaction is probably favorable. Yeah, I think you are onto something there, but I wouldn’t say I put a lot of thought going into that coming to this call. But I think your guide is probably right, that we could see as you – it’s almost like anything in life, the more of it comes to you, the more of a problem there is to address. There could be something there.
Nick Jones: Great. So then I guess my follow-up would be, to the extent that there’s potentially a tailwind and you guys are approaching your midterm targets, I mean how much of a North Star is the midterm target if there’s an opportunity to kind of maybe either more aggressively invest in technology or landing those rooftops? You know, because technology investment has always been kind of part of the ACV story. So I guess how nimble is the roadmap to the extent that maybe a tailwind manifests?
George Chamoun: So I feel really good about the roadmap. I mean, when you look at, consumer sourcing will help these dealers get the right inventory. When you look at the pricing strategies, helping them price vehicles correctly. When you look at the way we’re merchandising assets inside the platform. We’ve got our commercial customers. I mean, you’ll start to see commercial volume start to become more material over the next year. You know each of these areas are all going to add up, and that’s why I still feel great about our midterm targets. We really have quite the sizeable product and tech investment going on here across several different areas, and as those areas mature, we’re already doing great, but there could be an accelerate.
There could certainly be an accelerate. But I would say for now, instead of creating yet a new expectation, I think the expectation I’ll manage right now is I feel great about the midterm targets. And I would say as we get closer to it, then we’ll create new expectations. But for now, I’ll just leave it there. I think our product and tech investments and our overall position we’re in, we’re in a really good spot.
Nick Jones: All right. Thanks, George.
George Chamoun: Thank you, Nick.
Operator: The next question we have is from Gary Prestopino of Barrington Research. Please go ahead.
Gary Prestopino : Hey. Good afternoon, George, Bill and Kim. Hey, a couple of questions on ClearCar. And I know it’s early in the game here, but how much has this really proliferated through your dealer customer base at this point?
George Chamoun: You know, we didn’t really come in with a number today, but I think we’ve got – we don’t want to broadcast a number every earnings call, so I won’t answer every call. But I think we’re close to 700 rooftops or something like that. So we’re still early, but Gary, I mean that’s fantastic for a brand new product as you know. It might be one of the fastest growing auto tech companies, and we can look at it as like one product niche. Probably one of the fastest growth ones out there. So we’re – but to your point, still early. I mean there’s 16,500 franchise rooftops. There’s tens of thousands of independent rooftops, but the signs are positive. The end results are positive. We are not broadcasting necessarily everywhere either.
Like, we focused on the ACV MAX joint customers. We focused on our good wholesale customers, and maybe towards the back half of this year, early next year, we’ll start to step on the gas a little bit more from a sales perspective. But we kind of had our own pacing, and I will say we’re a little – we’re definitely ahead of our pacing, which you just need to be set up to do so. I mean, behind the scenes you are trying to turn on 30, 40, 50 customers a month. It’s a lot to do. We feel great about it. We’re ecstatic about our progress so far.
Gary Prestopino: No, that is good. And that just gives us an idea of the potential growth trajectory. And then I have two other questions regarding ClearCar. Of the dealers that are sourcing cars through ClearCar, are you finding that the majority of them will sell something through your platform, because they are sourcing the car through your ClearCar product?
George Chamoun: Yeah, so they have two options. They can either pay us the subscription, like look at this like a bundle, like what we’re doing with ACV MAX, and so either they are paying us a healthy subscription, or they are actually giving us wholesale cars. So we’re getting one of the two. Most of the customers we’ve turned on have agreed to the wholesale volume commitment, and some of the customers that have come on, have gone down the subscription bundle then with ACV MAX. So we’re happy with both. So we’re not like pushing every dealer down a path. They have two options. Go down path A or path B, and both are positive for ACV.
