Josh Nichols: Understood. Got it. Thank you. I will hop back in the queue.
Ravi Venkatesan: Thank you.
Operator: Thank you. We will take our next question. And your next question comes from line of Gary Prestopino from Barrington Research. Please go ahead. Your line is open.
Gary Prestopino: Hi Scott. Hi Ravi. Hey, a couple of questions here. First of all, on the transactions side, it’s exceeding expectations. Is that – a lot of that driven by the micro market business and that you get higher ticket prices there, or have you been able to, because you have increased your volumes, been able to negotiate better terms with some of the card networks?
Ravi Venkatesan: It’s a combination. The micro markets becoming a bigger part of the equation has definitely helped. Even in cases like vending, the types of products that are sold through those channels have changed, I mean now you have vending machines that are dispensing cupcakes and pizza and headphones and cosmetics instead of just snacks and beverages, so that’s helped. Some of our other verticals like amusement, etcetera have had also higher ticket items, so all that. So, the product mix is shifting favorably. That’s one aspect. And yes, we have been able to do optimization on the transaction processing cost, which both in combinations, but it’s not one side of the equation. It’s kind of both of those sides.
Scott Stewart: I will add to that a little bit too, Gary. So, if you look across the past four quarters, our take rate has increased quarter-over-quarter and that’s intentional. We have done a lot of work with our sales folks and those who are entering in new contracts to make sure that we are keeping as high the take rate as possible.
Gary Prestopino: Okay. And then I jumped on the call a little bit late. I know there was a lot of talk about the international expansion and what’s going on there. In the U.S. market, in terms of your Seed software platform, your total software platform, and even in particular, remote price change, can you just address how that shook out in the quarter and that there is still a healthy appetite on the part of operators to want to have this software to maximize their own profitability?
Ravi Venkatesan: Yes. And that’s why I mentioned, part of the nice thing about our business and what I am seeing as our future is our dependency on selling hardware widgets and installing them to grow the revenue per unit continues to diminish as the attach rate on software add-ons has been healthy. So that’s how we have been able to grow the ARPU so aggressively is by all these add-on software products. Yes, Seed penetration within our base continues to grow at a healthy rate. Remote price changes continue to grow at a healthy rate and so have some of the newer products which I mentioned like Seed analytics, intelligence, PV, etcetera. So, the exciting thing is both on the transaction processing side through mix shift in products and ticket sizes as well as on the software side, we have now identified and executed on vectors of growth that are independent of selling new equipment.
Gary Prestopino: Thank you.
Operator: Thank you. We will take our next question. Your next question comes from the line of George Sutton from Craig Hallum Capital Group. Please go ahead. Your line is open.
Unidentified Analyst: Hey. Good afternoon. This is Adam on for George. Going back to the recalibration of the international ramp, I was hoping you could share a few details about what you have done from a sales and marketing standpoint to coincide with that recalibration?
Ravi Venkatesan: So, from a sales and marketing perspective, it’s been more about what are the right target segments for us kind of initially versus as we have established credibility and we can go and start scaling further and then where do we need to be more channel partner driven versus direct sales driven versus marketing and search engine optimization driven. So, all of that when you enter new markets, you learn a lot and you learn a lot by yourself as well as from the experiences of others, right. So, some of our competitors have been in those markets for a while and we have learned both from their successes and their mistakes. So, all of that has gone into what we are calling as a recalibration. And then some of it is just becoming more realistic and informed about our own expectations of the ramp.
When we entered the early stages of our Europe expansion, for example, we thought the upgrade cycle from 3G to 4G connections in Europe would be very similar to U.S. where it was basically single cutoff dates from the major carriers. But as we have executed, we have realized that Europe has worked very differently where every country has a different cutoff date, every carrier in every country has a different cutoff date. So, the pressures on customers to upgrade equipment have not been the same as they have been in the U.S. So, all of that has gone into what we have called a recalibration.
Unidentified Analyst: Great. Thank you. And then with respect to the Innovation Day in Mexico, could you just kind of share some of the things you learned from hosting that event? And in addition, do you have any other Innovation Days scheduled in EMEA or LatAm?
Ravi Venkatesan: Yes, we have a whole pipeline of these types of events and they are intended to drive more conversations and more intimate demonstrations of our innovation capabilities with prospects and customers. The Innovation Day in Mexico that I mentioned was with a couple of key partners, AMS, that’s our reseller in the Mexican market as well as Xtreme is one of their distributors. And that enabled us to share innovations with a number of operators that they serve and that they provide equipment to then add on our solutions to both increase same-store sales and boost operational efficiencies for those customers.
Unidentified Analyst: Great. Thanks.
Operator: Thank you. We will take our next question. Your next question comes from the line of Mike Latimore from Northland Capital Markets. Please go ahead. Your line is open.
Vijay Devar: Hi. This is Vijay Devar for Mike Latimore. I think I will continue with the international expansion discussion. I think you have disclosed how many devices there in Mexico and EMEA. Could you tell us how many customers you have overall internationally?
Ravi Venkatesan: Yes. I mentioned in the call that in Europe we are now over 30 customers. We have a sizable number of customers in Latin America. We haven’t yet disclosed that the Latin American market is a little bit more concentrated in terms of a few large players. So, for competitive reasons, we are not yet sharing the number of customers. But suffice to say that it’s a healthy number. It’s smaller than the total number of customers in EMEA, but in a similar kind of range.
Vijay Devar: Okay. And in terms of the pricing and gross margin in international businesses, how do they compare with those in the U.S., I mean the margins and the pricing?
