Pavel Molchanov: Thanks for taking the question. Just one for me as well. It’s been about a year since you last made an acquisition, as I recall, it was one of the software developers. Can you talk about how you’re thinking about M&A? And specifically, are there some quasi distressed opportunities in the current environment that perhaps are more interesting than before?
Badri Kothandaraman: Yes. We have — you are correct. We have made some reasonable acquisitions. Solar graph is an example of one. The permitting services is one. EV charging is one. And we are working on all of them. So we’re careful about choosing what we want. And then we try to make them an integral part of the system. So what are the opportunities like that. And we constantly keep looking for those is the key places where we would look for is, I mean, okay. First of all, what we are not going to be looking for is we are not an installer. So therefore, we don’t buy installation company. We are a technology player. So and for example, on microinverters, we have all the necessary IP. We aren’t going to do — going to look for anything outside in places such as home energy management software, there’s always opportunity for us especially leveraging AI and ML talent to make — to accelerate our progress there, because I think energy management software will become the next frontier.
That’s one that we are always looking for opportunities. The other is on batteries, of course, innovative technologies on batteries, batteries getting better, more reliable, more energy density becoming a lot higher. That’s of course an area that we continuously look at. Those are the ones that are on our radar right now. But we look at a lot of companies and when we make some decisions on those you’ll know. But we are very disciplined. We don’t do — we don’t just buy companies because we have cash. Those companies need to fit into our company well. They need to be bolt-on acquisitions, what we like. And we care about integration a lot. That’s important for us. If there is an opportunity in the March we’ll move, and you’ll know.
Pavel Molchanov: Thanks very much.
Operator: The next question comes from Austin Moeller of Canaccord. Please go ahead.
Austin Moeller: Hi, good evening. Just a question for me here. If you say in the U.S. market, if interest rates fall by 50 to 100 basis points this year, do you expect to see more demand of combined orders from microinverters with batteries? Or do you expect the initial demand will primarily be for microinverters? Thank you.
Badri Kothandaraman: I think in the non-California states, it will obviously be for microinverters because the battery attach is small. But in California, it will move the needle for both microinverters and batteries.
Austin Moeller: Great. Thanks for the color.
Badri Kothandaraman: Thank you.
Operator: This concludes our question-and-answer session. I would like to turn the conference back over to Badri Kothandaraman for any closing remarks.
Badri Kothandaraman: Yes. Thank you for joining us today and for your continued support of Enphase. We look forward to speaking with you again next quarter. Bye.
Operator: The conference has now concluded. Thank you for attending today’s presentation, and you may now disconnect.
