Jikun Kim: I’m sorry, I didn’t hear the question. If you could repeat the question.
George Notter: Yes. I mean, I guess, like I get that the telematics transition, you move customers onto the lower ARPU capability. But I know the story here is to migrate the company to more of a full stack solutions provider. I know the K-12 business is obviously an element of that. But as I kind of look at all these metrics, I’m just curious like, how are you doing in terms of retention of existing customers? Do you have retention rates that you can share with us? Any thoughts there?
Jikun Kim: Yes. No, we haven’t disclosed that, but I can share with you the subscriber base for K-12 has been relatively flat the last few quarters. We are a very large market shareholder in that market. And obviously, as an incumbent large shareholder get attacked by some of our competitors. But we are holding our own, but it’s time to go on the offensive, obviously, to make sure that we increase ARPUs, meaning upsell existing customers, with this vision solution as well as gain share.
George Notter: Okay. Great. Thanks very much guys.
Jikun Kim: Sure.
Jeff Gardner: You’re welcome.
Operator: Thank you. Our next question comes from the line of Anthony Stoss with Craig-Hallum. Please go ahead.
Anthony Stoss: Thanks. Hi Jeff, I just wanted to ask a question, more big picture competitive landscape wise. You’ve been having issues clearly on component sourcing, et cetera, and pricing over the last several years. It seems now though that a lot of your competitors are actually growing where you guys aren’t. Can you give us any kind of confidence that you’re not losing share that the fact that your telematics devices are probably abnormally high versus your competitors and they’re using price to take share? That’s what it seems like to me.
Jeff Gardner: Yes. On the TSP side, it’s really important, Tony, as you know, that the TS business is pretty unique to us. So when you look at us compared to Geotab or Samsara, they don’t really have this big TSP business. That’s where we started. It was necessary to convert that base to a subscription model, so we could manage it. I think that will be more stable over time. We are still winning business from our customers because our configurability, we are priced a little higher but our customers really need that configurability, they place a lot of value on it. It allows them to – it’s not as simple as you would think to switch providers. So I really think on the TSP side, is inventory correction that they’re making with the change in the supply chain is having a big impact, at least in the first and second quarter.
But when I think about share and what we’re trying to do with the business now, really turning towards those full stack customers and the sales force can really focus there now. And that’s where I think you’ll see us growing that recurring revenue line item. And it makes us look more like a pure play like Samsara and Geotab over time, which, yes, they are growing. And we think we are a very good competitor, especially at the high end of the market with big fleet, long-haul customers where we could leverage our engineering and transportation logistics expertise. So we do very well there. We tend to compete upmarket. And so we’ve seen a couple of wins, as we said in the – at the end of the first quarter there. Those are a little bit longer sales cycle but higher ARPU.
Anthony Stoss: And then just to mention that you expect this to continue on for a couple of quarters. Do you expect kind of this $70 million run rate that you’re at for both May and you guide for August to be largely similar for November and February.
