Mark Donohue: I think you’re right to say that that mix will be quite different. I would say what will really happen in the early parts of the year, let’s say the first half of the year, you’ll see the product number continue to be relevant especially in Q1 and then start to dissipate throughout the year. I don’t think our product revenue will ever go to zero. We’ll always be selling some element of product through. But our focus and like I think I said to one of the other gentlemen on the call is to really push that subscription line. So going forward, we are either going to be selling pure subscription, which gets recognized in that pure subscription line of the three lines on the P&L or we’re going to be selling the subscription that goes along with hardware that’s likely to be purchased through a distributor, which will also go through that line.
So I think as you model things throughout the year, you should probably think about putting the subscription number up higher and higher as a percentage And I would say over the next 18 months to 24 months, we’re probably going to try to achieve 80% subscription during that period.
Brian Ruttenbur: Okay. Then as a follow-up to that, just trying to model first quarter, should it look something similar to fourth quarter or should we see a big drop in terms of product? Because product was much higher than I anticipated in that fourth quarter?
Mark Donohue: Yes, I think product will continue to be a pretty prevalent number in Q1, mostly because we continue to take orders as we exited the year and we’re continuing to deploy orders out of our backlog. So while I don’t think the number will be quite as high, it will be a meaning number in Q1 and start to really decline Q2 forward.
Brian Ruttenbur: Okay. Very good. Thank you. And then also the services revenue then typically when you have high product revenue, you also have high services revenue. It should be also is that a good logic? Or is there something I’m missing there?
Mark Donohue: The services revenue, just remember that this — we took the hardware revenue as part of a deal and that happens one time for all the hardware purchase orders that we’ve done, which you’re seeing the recurring nature of in the service line, we’ll continue to see that. We also have a little bit of revenue in the service line that happens due to installations and things of that nature. But again, as we go through this, I think what you’ll start to see is that we’ll move towards I would say the subscription line being about 80% and the services line being 15% to 20% would some points in product over the long term.
Brian Ruttenbur: Great. Thank you very much.
Operator: Thank you. I have no further questions in queue. We’ll turn the call back over to Peter George for closing comments.
Peter George: All right. Thank you very much. Look everyone, thanks so much for joining us. We had a historic year in 2022 capped by an amazing Q4 where we set records in revenue in ARR and RPO, because we have this amazing sense of platform, our growing awareness in major cities is making us ubiquitous in places. If you go to New York or Nashville, or Atlanta or Chicago, you’ll see us in ballpark, in museums, in schools and tourist sites and that has force multiplying effect when people experience going through the system, it’s very helpful for us. So we’re continuing to get awareness in the market. That’s really, really valuable. We’re getting tremendous leverage in our business model this year. In fact, we grew revenue twice as fast as we grew expenses.
We’re excited about 2023 and our growth plans to double ARR. And then finally, as we mentioned, our balance sheet, we’re well capitalized and feel very strong about exiting the year with a lot of cash in our balance sheet. So thank you all for joining us. Remember our Analyst Day on May 25. We’ll be at the iconic Fenway Park. We’d love to have you all there and thank you for joining us today.
Operator: Thank you. Ladies and gentlemen, that does conclude your conference for today. Thank you for your purchase a patient and for using AT&T event conferencing service. You may now disconnect.
