So I think part of the pick-up and spend is just the natural tendency to go deeper in markets. But then that has sort of a flattening out. I think we’ve said we don’t necessarily aspire to cover 80 markets. Our footprint will grow if our merchants ask for more markets. But we believe we have a good grasp on most of the attractive emerging markets. And so you go a bit deeper, but there’s a point where you already feel you have very robust capabilities, and the investment cycle flattens out a little bit. And the same goes for IT. I mean, clearly we’re not going to be growing our engineering talent pool at those levels consistently over a multiyear process because that’s simply not efficient. We do think there’s a bit of catching up to do and we also think that with this leaning into the engineering talent short-term, it also allows us to be much more efficient on the back end of that because we’re able to automate more and more functions that otherwise would require increases in headcount or third-party services.
Hence, we believe that there’s this cadence of specific [Technical Difficulty] [Audio Gap] When we look at our late-stage pipeline, if we execute well on what looks like a promising late-stage pipeline, our expectation is that the business begins to pick up as we move forward towards the end of the year. Again, that’s predicated on continued successful execution, but to the best of our knowledge today, that’s what’s built into the guidance.
Matt Coad: All right. Thank you. I just have one follow-up. Given that, I think, we only have 10 or 12 more days left in Q1, you’ve seen a lot of the quarter already. Do you have any early comments you could say about anything that you may have seen in January, February or what we’ve seen of March so far regarding any early indicators and just any thoughts you have on Q1?
Pedro Arnt: I think we should follow the protocol and we’ll comment on Q1 when we come out with the complete information and communication to the market. So, we’ll be more than glad to give you guys as much detail as is necessary when we announce Q1. I think in terms of the general cadence built into the guidance, which was your previous question, we’ve given you as much directional understanding of what the guidance implies as makes sense at this point.
Matt Coad: All right. Thanks, Pedro.
Operator: One moment for our next question. Our next question comes from Ashwin Shirvaikar with Citi. Your line is open.
Ashwin Shirvaikar: Thank you. I appreciate all the detail and color in the call. Pedro, a question for you as I look at the stock over time, right? One of the repeat issues for the stock has been the definition of where you focus, which is emerging markets, which implies narrow situations, volatility, influence of regulation by country and so on. Is there anything you think you could do from an organizational design or risk management perspective, and it may already be in progress, but I just want to figure out what you can do to avoid sort of the quarter-to-quarter volatility by country that has plagued the stock for many quarters in a row now?
Pedro Arnt: Yeah. I wish I had a better answer for you, but the reality is that we operate in volatile parts of the world. The answer to that is scale. As our business continues to grow, as our TPV continues to come from an increasing number of markets, an increasing number of merchants, in general, that diversification ideally will generate less lumpiness in the business as it scales out. That’s both from an exposure to a market, but also exposure to merchants. We still have a higher level of concentration in the top merchants than is ideal and then we strive to have, if we look forward, two years, three years, five years. So, the best answer I can give you is, this is driven by the complexity of the markets where we operate and the fact that our merchants sometimes take long to ramp up and then when they begin to ramp up, ramp up very aggressively, as we saw in the fourth quarter where concentration actually increased, driven by two merchants that have given us incremental share and have grown volume significantly.
The solve here is not a short-term solve. It is what it is and the solve is simply that diversification ideally generates more predictable revenue streams going forward. Also, focus on gross profit. That is a metric that, although it’s also characterized by the volatility typical of emerging markets, is less volatile than the revenue metric and hence why we’ve been giving increased importance to that one.
Ashwin Shirvaikar: Okay. No. That makes a ton of sense. I guess the second question is just with regards to all the changes that have been going on at DLocal. As you’ve been having conversations with your clients, do they care about all the internal changes going on or is it more or less that they need these capabilities in emerging markets? The list of companies that provide these services across multiple markets is a short list and so the TPV growth should continue at a healthy level.
Sebastian Kanovich: Hi, Ashwin. How are you? Seba here and thanks for the question. So, Ashwin, the way merchants vote, if you will, it’s where to send volumes to, because that’s what they get to decide. Revenue, gross profit, EBITDA, it’s everything more on our own efficiency. And if anything, we’ve seen that merchants not only continue to vote for DLocal, but they do so at a scale that we’ve never seen before. Last year, we grew our volumes more than 50%. You see quarter-on-quarter growth. And I think that’s a testament of how valuable what we are doing this. If merchants derive a lot of value from our offering, we continue to be extremely differentiated. And if you ask me, that’s probably what makes it the most bullish.
