Unidentified Analyst: Okay. I wanted to squeeze in one for Mark about the gross margin embedded in the RPO. But Peter, back to you again, When you spoke a lot earlier about what seems to be a strategy for expanding data in and data out customers and integrating with other platforms.
Peter George : Yes.
Unidentified Analyst: And this question is really about the sort of add ins that we talked about earlier in your life cycle. I think we talked about ticketing and things like that. When you’re having discussions with your customers, is there one particular application that a lot of them are interested in?
Peter George : There are several that come up and a lot of the infrastructure actually is already there. So video management system, the VMS systems from the leading providers that are already there, they want us to connect to those. Access control systems, turn styles, our badge readers, they want us to connect to those systems. Video analytics systems for outdoor detection of weapons. As you know, we can find concealed weapons, but connecting to companies that are doing video analytics for gun detection. So we can see somebody who’s drawing a gun outside of a building is something that they want us to connect to. So in addition to biometrics and ticketing that we’ve talked about before, there’s a high desire to connect the security infrastructure to give companies and security people, situational awareness that they just didn’t have before. So those are the three or four areas that we’re integrating with our key customers.
Unidentified Analyst: Thanks Peter.
Peter George : Great.
Mark Donohue : And your question on RPO2, for the quarter, we’re at the $144.6 million level. That represents the unbilled activity on both deployed and undeployed units over the next three-plus years. Some of this is pure subscription and some of it is the back end software portion of hardware that we’ve already brought together. So when you look at the combination of those two things, we have analyzed that the margins sitting within that number are about 65% plus right now that we’ll recognize over the next three years.
Unidentified Analyst: Great. Thank you, Mark.
Mark Donohue : No problem. Thank you.
Peter George : Thank you.
Operator: Thank you. Next, we’ll go to the line of Brett Knoblauch with Cantor Fitzgerald. Please go ahead.
Brett Knoblauch : Hi, guys. Thanks for taking my question and congrats on the quarter and strong finish to the year. Can you just walk through me, I guess, the sequential growth in subscription revenue, given how strong ARR growth was last quarter and this quarter as well I would have thought you would have seen a bit more flow through to subscription. So I guess can you just help me understand the dynamics there?
Peter George: Sure. And Brett, welcome to the call. We appreciate it having you on board. In terms of subscription, revenue quarter-over-quarter. We made an announcement to both our sales force and as well as to our base that we were moving to more full subscription beginning on January 1. So we had a fair amount of activity in the pipeline that was still bent towards the purchase subscription model. So we executed on that quite a bit. Q4 was actually meant to be more purchase subscription than it was pure subscription as we kind of went through that process. In the beginnings of Q1, we’ve already seen that trend starting to change, but in terms of the growth in subscription or the ARR. One thing you got to remember is that a lot of what we booked in Q4 will not show up until Q1.
