Gary Prestopino: Hey, thanks. Good morning, everyone. A couple of questions here. First of all, Alex, you said Accu-Trade appraisals were up 20% to 500,000. Is that a year-over-year number or was that sequentially?
Alex Vetter: Sequential.
Gary Prestopino: Okay. What — in terms of car sales though through Accu-Trade, can you give us some idea of, as a percentage of appraisals, how many are actually picked off by the dealers?
Alex Vetter: I don’t have that data handy, Gary, but we have visibility on that. And what’s important is that, we can see if the dealer that the car was originally sent to bought the car or if it appears in another one of our dealer partners because through our back-end technology, we can do win matching to see which dealer bought the car. And I will tell you that the vast majority of vehicles are being bought by the dealer network. Sometimes it’s not the initial dealer, but the cars are absolutely being acquired by our network.
Gary Prestopino: Okay. That’s great. So then, why are you shifting it to D2C Media, you said 1,000 dealers out of 10K in Canada, are most of their dealer-based franchise or independents?
Alex Vetter: Yes. About 80% of their dealer network is franchise and about 20% independent.
Gary Prestopino: Okay. All right. And then it’s pretty easy to see what you can cross-sell up into Canada, but is there anything that D2C brings to you that in terms of their products that you can cross-sell into the US market?
Alex Vetter: They do have some great technology, both a CRM platform as well as a BDC tool that helps do appointment setting on behalf of dealers. Gary, we have a lot of dealers that have personnel that turns over in the US, and so we have churn in our marketplace subscriptions, and they’ve built a solution that helps dealers preserve volume from their websites by leveraging a call center approach that we think has really enabled them to build a highly sticky solution for dealers. And I could see applicability of that here in the US over the next, call it, 12 months, we’ll be consolidating our road maps and aligning so that we can build tech once and distribute it multiple times, and that’s really the benefit of our asset-light software model is that we can get that operating synergy through the technology.
Gary Prestopino: What about their advanced inventory management? What is that all about that product?
Alex Vetter: Well, they’ve done some great work there. But as have we and we look forward to sharing more news about some of our inventory management capabilities going into next year. But obviously, as you can imagine, we’re syndicating inventory within our platform across multiple solutions and powering dealer websites and the marketplace. And so, dealers have consistently said to us if you could add an inventory management capability that allows me to syndicate my inventory out to other third-parties, it would allow me to anchor more of my relationship with Cars Commerce. And so, stay tuned on that front. We’ve got a lot of work underway, and it’s an area of opportunity for us for sure.
Gary Prestopino: And then just to be clear, this is not dilutive to your adjusted EBITDA margin, correct?
Sonia Jain: No.
Alex Vetter: No.
Gary Prestopino: Okay. Thank you.
Alex Vetter: Thank you, Gary.
Operator: And we have a question from Kunal Madhukar from UBS. Your line is open.
Kunal Madhukar: Thanks for taking the question. A couple, if I could. On the Canadian market. Can you talk about the competitive landscape that you are facing? And what gives you the confidence that you can drive growth in a market that is probably similar to the US in terms of maturity? And then on the overall dealer count as a whole, how should we think of the growth given that dealer count was declining even prior to COVID. And so what should drive the growth in the US once we have trough whenever this year, next year, whenever we trough, what drives the growth? Thank you.
