Pedro Arnt: Let me take Chile. Diego can take the expense question. So Chile is driven by the financial services vertical. Seba had explained previously that the financial services vertical, in many instances, is us being used as distribution for certain segments of merchants that we don’t — or financial institutions that we don’t access directly. One of our financial services partners for Chile lost a client that explains that decline. On the flip side of that, we have gained direct access to that client. We’re still ramping up. So potentially, longer term, that could be positive news. Short term, the Chile decline is driven by a client loss from one of our financial services partners.
Diego Cabrera Canay: Regarding sales and marketing expenses, if you compare to Q2, you will see an increase from $3 million to $4.4 million. Actually, the number that was a little bit affected in Q2, which was affected by a recovery of stock-based compensation. If you look at the longer sequence, like the previous quarters, you see, for instance, that Q1 was 4.9%. Q4 of last year was roughly $4 million. So the trend continues to be the same. The outlier was particularly Q2 that had a recovery of basically of stock-based compensation for our features.
John Coffey: All right. Thank you.
Operator: Thank you. One moment for our next question, please. Our next question comes from the line of Matt Coad with Autonomous Research. Your line is now open.
Matt Coad: Hi, guys. Good morning. And thanks for taking questions here. Just wanted to ask one more on Argentina. And I know it’s kind of uncertain, a little bit of a black box right now, but wanted to ask about dollarization and the impact on your business if that ultimately occurs.
Sergio Fogel: Hi, this is Sergio. Thank you for your question. As you know, there’s lots of uncertainty about that. The elected President said that, that his plan is to dollarize, but lately it seems to be a bit more remote. So it will take some time. if it were to come, what we envision — in general terms, what we envision is that the more certainty that there is around Argentina, the more customers are going to invest in the country. Argentina, by the size of its economy and by our previous experience should be one of our Top 3 countries in terms of volume. So we are — the more certainty that there is around the country, the more bullish and the more positively impact it should have on our business in the country.
Sebastian Kanovich: Just to complement on that, I think while it’s very early to say what’s going to happen in Argentina, we welcome normalization. But at the same time, Argentina is still a country that is full of friction. even in the context of full dollarization. Many of our merchants won’t operate locally. There’s still going to be cross-border settlement fees. So, we expect our business to thrive even in that scenario.
Matt Coad: That’s super helpful, guys. And then just one quick follow-up that I had. Just on the financial services vertical, you guys have mentioned churn a couple of times. So I just wanted to make sure that we understand that properly. Is it churn that your financial services partners are experiencing or is it churn in terms of you lost some financial services partners? And then I just wanted to make sure, did we experience that full impact of any churn in 3Q or is there some impact to come in 4Q as well?
Sebastian Kanovich: Matt, thank you very much for that question. Super important to clarify. We’ve had no churn whatsoever in our merchant base. So, all of our financial service partners continues to be customers of ours. Some of — one or two of them have lost customers of theirs, and therefore, we’ve been exposed to that. As Pedro mentioned before, with one of those key customers, we managed to build a direct integration, which hasn’t ramped up yet. So we’ve taken the hit, but you haven’t seen the upside yet.
Matt Coad: Awesome. Thanks guys.
Operator: Thank you. One moment for our next question, please. Our next question comes from the line of Guilherme Grespan with JPMorgan. Your line is now open.
Guilherme Grespan: Hi, good morning, everyone. Thank you for the presentation. Just one question on G&A on our side. We saw a meaningful drop quarter-over-quarter 17%. Just want to make sure there is nothing here less recurring this quarter? And how should we think about G&A going forward? And if I may, just a clarification, is still on Argentina, just want to make sure I got the message. If there is a big depreciation of the FX, you guys are saying that from an accounting standpoint, we should not expect meaningful impact to earnings. Is that right? Thank you.
Pedro Arnt: Let me start with Argentina quickly, and we’re not trying to avoid the answer. The reality is that there are multiple factors that will boil into whether we have an accounting impact or not from Argentina. So let me try to recap again. We have hedges on our Argentine positions that at maturity will fully cover us financially from any devaluation. Prior to maturity, those instruments are marked to -market. And if for some reason the performance of the instruments mark-to-market doesn’t entirely follow the underlying hedge, which is what happened in the third quarter, and you can look at the disclosures for breakouts, then you could have an accounting impact. Furthermore, as Diego walked you through, IFRS inflation adjustments could also generate accounting impacts from a devaluation.
