Bob Eckel: Thanks, Craig. Building upon the foundation we’ve laid over the past few quarters, we’ve generated meaningful cash flow and recurring revenue in Q3 through our efforts in new contract structure in our newly secured and expanded customer base. Through the continuous evolution of our technology and the launch of a formal partner program, we continue to leverage our customer relationships to optimize spending, drive recurring revenue and accelerate adoption for our SaaS-based platform. I’m proud of the revenue team and their efforts that have led to the highest quarterly revenue since Q2 of 2016 and the highest level of quarterly operating cash flow since Q4 of 2018. Looking at the remainder of the year, we are increasingly confident in our ability to achieve or exceed our financial goals, which includes growing total revenue and ARR by 15% in 2023 and to exit the year with neutral operating cash flow, which means we manage both inflows and outflows towards profitability while taking into consideration seasonal timing of cash outlays.
With our strong performance this year and especially Q3, we are confident we can reach or exceed our cash goals and believe we are well positioned to continue ramping up recurring revenue and driving sustained growth. We are excited for Aware’s future and appreciate everyone’s continued support. With that, we are ready to open the call for questions. Matt, please provide the appropriate instructions.
A – Matt Glover: Thank you, Bob. [Operator Instructions] David, what was the recurring revenue for the quarter? How much of that was from subscriptions versus maintenance?
David Traverse: Thanks Matt. Recurring revenue for the quarter was $2.2 million with $1.8 million of that coming from maintenance and the rest of that from our subscription-based revenue.
Matt Glover: Thanks David. Apart from the gaming space, what other markets on the commercial side are you seeing increased interest in?
Craig Herman: Sure. Thanks Matt. We are seeing a lot of opportunity in online gambling, education, workforce management, healthcare and financial services. As we have talked about in the past, we are continuing to leverage our government relationships to gain market share in new geographies and expand our commercial use cases. An example of this is leveraging our strong foundation in the Turkey financial sector. We have been able to streamline and our breakthrough into North Africa. And so this has really accelerated our expansion in the Middle East.
Matt Glover: Thanks Craig. David, another one for you. With a strong balance sheet, what are your capital allocation plans?
David Traverse: Yes. We ended the quarter with $27.5 million in cash, cash equivalents and marketable securities and no debt. We are continuing to capitalize on the higher interest rates as well as our previously announced share repurchase program. Moving into the remainder of 2023 and then 2024, we are maintaining – our goal is to maintain a robust cash position that will enable us to evaluate strategic opportunities with potential to maximize shareholder value and drive scale.
Matt Glover: Bob, a question for you. Can you give some color as to why you chose to appoint a Principal Financial Officer as opposed to a Chief Financial Officer?
Bob Eckel: Sure Matt. Obviously, this is not a traditional management structure for most public companies. But I feel and we feel that it aligns well with our current organizational scale, also our needs and it – well with our cost optimization initiatives that we have going on. So, promoting David to Principal Financial Officer allows us to reduce costs without compromising our ability to achieve our financial and operational goals. And also having streamlined financial team aligns with our strategic growth and cash plans. And I will say it again, David has done a fantastic job as our Corporate Controller over the past 3 years and we feel he is the right person for the position.
Matt Glover: Thanks Bob. I am going to combine a couple of questions here. We have received some questions looking for more details around Dave Barcelo’s departure, specifically if severance is owed and if any violations, legal proceedings or items of consequence transpired or are pending.
