David Kelley : I was hoping maybe to start — if you could update us on momentum in Europe. You delivered really meaningful growth in fiscal 2023 and the markets coming off of a really robust EV penetration ramp last year. So how are you thinking about the regional opportunity across the pond in 2024?
Pasquale Romano : We think about it the same way we think about the opportunity in North America, frankly, and it’s driven by, as you said, the differential is driven a little bit by a differential in car penetration from a new car sales perspective. But our strategy is virtually identical in Europe as it is in North America with respect to product in offering, business model, et cetera. And I’ll just remind you that we’ve said on many earnings calls that at the root of our forecasting and modeling, it’s all factored off of new car projections, net new vehicles in the installed base in the markets we serve. You had a kind of sub question in there about the sub-regions. We are serving predominant markets in Europe. We’re not in every country, but the ones we’re not in are small.
And so we are we’re just assuming that across the entire Continent of Europe, we should be able to continue to be successful with the product line that we’ve been successful with on the previous year. There was no real difference.
David Kelley : Okay. Got it. That’s helpful. And then one quick follow-up on the supply chain situation. I guess are you seeing improvement Q1 to date relative to the fourth quarter? And how should we think about that 4-point margin headwind, I think you referenced, does that continue to lessen here into 2024?
Pasquale Romano : Well, no — I mean, as we’ve said many times, no one has a perfect crystal ball on that one. So taking — maintaining a vigilant stance with respect to supply chain is what we’re doing. What we have said before and what I can repeat now based on our experience in Q4 is that the supply chain hotspots have narrowed considerably from the peak of the crisis. So we have all our management bandwidth looking at a much smaller set of problems. The problems you couldn’t you may still have issues with availability of supply of a fewer number of components that still limits your build, but it’s certainly a lot easier to put in mitigation strategies around right now. And we hope that over the year, supply comes into alignment with demand. And it’s too hard to call exactly what quarter we can say that all of it’s gone.
Operator: Stephen Gengaro from Stifel is up next.
Stephen Gengaro : Two for me. The first, Rex, you mentioned how full — consensus numbers for the year seem relatively tight, but you’re not giving full year guidance. But it sort of suggests to me that you think the consensus is reasonable by making that comment. Am I thinking about that correctly?
Rex Jackson : I’m chuckling just because I did not say consensus. What I said was, and this is an important distinction, analysts develop their models and then they make judgments based on why I believe this. I think this is going to be better. This is going to be worse and they come to a conclusion, and we use the word dispersion. Last year through no fault of their own because we’re a newly public company and who could have modeled us from the outside last year, I wouldn’t expect you guys to be able to do that. So the numbers are all over the place. So I felt like we needed to help get it centered. But I think the dialogue we’ve had with analysts over the last year and people’s understanding of the business and their ability to form their own conclusions about what the outlook should be is vastly improved versus last year. And so I just think — I just — I think having you be 100% the author of where you are is the right answer.
