Kurt Binder: Yes. Hey, Jacob, Glad to have you on the call. Yes. So as you pointed out, overall services gross margin quarter-over-quarter did drop slightly. We were at 75% on a non-GAAP basis last quarter, we were at 74%, 74.1% this quarter. A lot of that was driven by the services revenue mix in the quarter. As we’ve talked about in the past, we do have quarters where NRE is a bigger portion of our overall revenue and our NRE service revenue tends to be at a lower margin profile. So that will happen quarter-to-quarter, you may see some fluctuations. But I will say and I emphasize that we’re still very extremely excited about how we’re executing on the services business. As we mentioned previous quarter, we reiterated again this quarter that we expect that services business to be up 45% year-over-year, and we still are targeting for a full year to be in that range of 75%. So that’s our target for the year.
Jacob Stephan: Okay. And so if I recall correctly, the guidance for service revenue growth year-over-year was raised slightly last quarter. And I think it equated to something around 48%. So is this kind of just a resetting of expectations or I guess just a little light down ticker in the last quarter.
Kurt Binder : No, no, last quarter. Yes, we definitely guided to in that $200 million range for sure. I don’t know if we actually cited the actual percentage growth, but what we see from — when you look at last year’s full year service revenue versus this year’s full year service revenue, we exactly will be up probably 45%. That’s what we’re targeting.
Jacob Stephan: Okay. And just one more on the kind of overall competitive environment. I mean, ADT reported recently, they’re kind of refocusing on the core business. launching some newer kind of lower ASP products. Do you see any new kind of competitors or any new competition from ADT or any of the other guys in the market today?
Matthew McRae : It’s a great question. We are actually seeing some more consolidation and actually some brands come out of our major channels, which I think provides some opportunity on the upside. So if I step back and just provide a little bit of commentary on what we’re seeing across both arlo.com, but more specifically, our retail and direct paid channels like the big retailers. We positioned ourselves, I think, extraordinarily well based on our pricing strategy and some of the things we talked about in our prepared remarks. And we’re expecting a great holiday season. I mentioned in the prepared remarks that we had an above forecast or strong Amazon big deal Day, which was in the October time frame. I’m happy to report today, too, that Walmart launched its AE event, which is its annual event, which is kind of its biggest promotion in Q4 for its holiday period yesterday.
Arlo is the flagship product for that in this market segment. And we’ve got about 1.5 days of data under our belt, and it’s actually stronger than expectation as well. So we’re seeing, like I mentioned before, consistent, resilient demand based on how we’re executing in the channels, and we’re starting to see in certain channels, some of our competitors actually be pulled off the shelf as the retailers are concentrating on those brands that are actually investing in the channel and actually driving growth for them. So — yes, there’s some noise about certain products being launched here and there, but I would say the overall trends we’re seeing in our channels are actually around us gaining share, us gaining mind share with the channel partners and seeing some of our competitors actually come off the shelf.
Jacob Stephan: Okay. Yes. That’s very helpful. Thanks for all the color. Good luck going forward to you guys.
Matthew McRae : Thank you.
Operator: Your next question comes from the line of Adam Tindle with Raymond James. Your line is open.
