Ron Clarke: It’s just that channel thing that I said before. I mean, that literally was the point of our same store sales reduction. We would have been 2% if that business was flat. So again, it’s just a big partner that gives us lots of volume and no money goes, dates around and goes non-exclusively. And so, hey, we lose a little bit of revenue and we lose a lot of volume.
Tom Panther: But the take rate goes up because obviously, that’s a lot of low margin business that we weren’t getting. And we also noted that excluding channel, the spend level was north of 25%. So it’s really a channel story that’s driving both the volume and the take rate noise that you may be see.
Ron Clarke: But again, just to — you said for finer point on the thing, I want to make sure people have heard that we have the business to have contracted, right, for ’24. So that helps us relate to you guys that we’ve hit the bottom there, because when I look at what’s effectively contracted, inside of the minimums we have, we’re kind of done with that dating around, there’s no more dating. If you day one or two people any more I mean that’s where it is. So if there’s any good news, that’s the good news here.
Tom Panther: And kind of belt and suspenders it was also some minimums as well, so we also got some protection that while we’re under contract, we also have some commitments from a minimum perspective, too.
David Koning: And just a quick follow-up. Bad debt expense, you called it out, I mean, lowest — $22 million, lowest in eight quarters or so. Is your 2024 guidance for that to remain low? And if so, is anything related to reversals, like is it unsustainably low in 2024 or just normalized?
Tom Panther: No. I mean I’d say it’s fairly normal. Obviously, it’s going to fluctuate from a dollar perspective, as the business grows. We think of it more in terms of basis points of spend or percentage of revenue, because as the business grows, you’d expect the bad debt dollar amount to grow, but not necessarily that rate to necessarily grow. So I think we’ll continue to see good performance in 2024. We have — plus the micro client that Ron said, we’ve tuned some of our models, we’ve gotten to a point where I think we’ve learned a lot over the last, call it, six quarters, and I think we’ll be in a position where we can be a bit more opportunistic in terms of how we manage credit.
Ron Clarke: And again, just add the point is it helps the flow through into earnings, right? Although, it looks like revenue is light when you take those late fees out, because you’re taking out the credit loss expense, basically, you have a decent flow through down to EPS. So that’s one of the reasons that the profit flow through remain pretty good.
Operator: The next question comes from James Faucette with Morgan Stanley.
Unidentified Analyst: It’s Mike [indiscernible] on for James. Just one quick one for me. On the buyback, anything that we should be mindful of just in terms of cadence there? Do you think it will be fairly evenly distributed based on seasonal free cash flow generation or will it be weighted to any particular quarter?
Tom Panther: I think we’re going to be mindful in terms of market conditions, and we like where the stock price is. As I mentioned, we’re flush with liquidity, both on the balance sheet. And then when we upsized the revolver, we have another $600 million of liquidity. Obviously, we want to use some of that liquidity for M&A. But you add it all up, we have probably up to $2.5 billion, $3 billion worth of cash that we want to put to work, and we want to put it to work as quickly as possible. So I think the timing is just going to be predicated on the market, the amount of floating stock and those types of things. But I think we will be looking to be in the market over the course of this quarter and then we’ll see how market conditions are as the year plays out.
Operator: Ladies and gentlemen, this concludes our question-and-answer session, as well as the conference. Thank you for your participation. You may now disconnect your lines.
