Timothy Chiodo: Great. Thank you for taking the question. Looking at the gap between the 19% volume growth and the 30% revenue growth for Clover, you hit it pretty well I think on the VAS adding about 900 basis points. It just implies that there’s a small component there from direct mix hardware and pricing as you mentioned? So I just wanted to see if you could provide some context on the path to the $4.5 billion, how we should think about those other contributors direct hardware and pricing contributing? And maybe a different way to ask it is, should we expect the volume growth to stay in this sort of high-teens range, or should we expect slightly higher turnover of volume growth?
Bob Hau: So, a number of elements to that question. First, in order to achieve the $4.5 billion goal that we set out ahead by 2026, we need kind of a very high 20% call it 28% total Clover revenue growth. As part of that goal, we’ve indicated we expect VAS to achieve 27% penetration from the current quarter Q1 at 20%. So certainly a big part of it is additional VAS. And we’ve talked about this in the past, the secret recipe to growing Clover to $4.5 billion is actually not so secret. It’s get new merchants, sell more stuff to those merchants, and grow with those merchants, and that’s exactly what we see. To your point, in the current quarter, there was a big part of the overall revenue left. Certainly, the delta between revenue and volume was driven by VAS.
We kind of gave the sequence in order of importance, and I think that will continue as we progress over the next couple of years as we march towards that $4.5 billion, VAS will be a big part of it. This is always priced depending on what’s going on with inflation, what’s going on in the market, but that’s probably the third of the three important factors.
Timothy Chiodo: Great. Thank you.
Bob Hau: Thank you.
Operator: Next we’ll go to the line of Jason Kupferberg from Bank of America Merrill Lynch. Please go ahead.
Jason Kupferberg: Good morning guys. I just had a two-part question on merchant. The first is just do you have the total segment volume and transaction growth for the quarter? Not sure if you’re going to continue to provide that going forward? And then the second part is just on the April comments. Frank, I think you indicated actually a little bit of an uptick in April relative to Q1, which could be viewed as a bit of an upside surprise considering Easter timing and how that fell this year? So just curious which parts of merchant might have performed better so far in April versus Q1. Thank you.
Frank Bisignano: Hey Bob take the first part, I’ll take the second.
Bob Hau: Yes, so the first part of your question is, in our prepared remarks, we gave a small business volume growth at 8% and enterprise transactions growth at 12%. Given the way we’re reporting now for that Merchant Solution Segment and the three business lines. We felt that the volume for small business is the driver of revenue, and for transactions, it’s enterprise. Transaction activity in small business is not a revenue driver and volume for enterprise is not a revenue driver. So we thought providing the key metrics that really are driving the business was important.
Frank Bisignano: And just to be clear on clarity, a small tracking, a small growth, I want it. And I put it in the non-discretionary buckets. If you’re thinking about where it occurred. Obviously, that’s, you know, an early indicator. It’s not necessarily, you know, how the whole quarter is going to play, but we always feel committed to be able to talk to you about what we see, you know, the vast amount of volume we have going throughout the — both in the U.S. and around the world, and I consider it a small increase.
Operator: Thank you. Next we’ll go to Dan. Yes, we’ll go to Dan Dolev from Mizuho. Please go ahead.
Dan Dolev: Hey, guys. Great results. I just have a quick question on Pay Easy. Can you maybe give us some context on the conversion to Clover, you know, about roughly timing and contribution and are there any other conversions that we should be expecting? Thanks again.
Frank Bisignano: Yes, the way — great question. The way we think about, Pay Easy, it was a processing system that were retired and then built out both commerce hub and brought some of that volume, which already existed through Clover to the future new merchants. That was completed, migrated, multi-year project that we built out in a way that allowed us to build out Commerce Hub, that allowed us to deliver VAS into Commerce Hub and also have Pay Easy operating within our SMB base. So I feel great about closing the books on that from a conversion standpoint. And we’re seeing on the enterprise side, you heard us talk about 200 Commerce Hub users and a strategic platform for us going forward.
Dan Dolev: Great. Thank you and great results again.
Operator: Next, we’ll go to the line of Ramsey El-Assal from Barclays. Please go ahead.
Ramsey El-Assal: Hi, thanks for taking my question this morning. I wanted to ask about M&A and what you’re seeing out there. It feels like there’s a little more opportunity, maybe urgency on the side of sellers in the sort of Fintech industry. What are you seeing and what’s your appetite right now for doing a deal?
Frank Bisignano: Well, you know, I don’t know about urgency on sellers’ parts as much as valuation and understanding what real valuations are. Now, we have a really great model, which we talked about our ability to generate cash flow, investing in our business, and the ability to deploy capital. I think we’ve done a very, very good job in the assets we’ve acquired, integrated, and grown. And so I’d say our appetite to acquire properties is always high. I mean, we’re always trafficking. I think on the other hand, you know, we want to be very, very, very clear that it fits within our strategy, which I think is holding tight. It’s within our structure and the ability to distribute the product to our vast client base both on the merchant side and on the FI side.
