So we have four big currencies that are the biggest component Dan, its the Canadian dollar, the Aussie dollar, the British pound and the Euro. As you – as we look across those, remember, when we gave guidance earlier this year, that was based on a rate as of December 31. If you look across those currencies, the dollar actually weakened significantly into last year into December 31. Then while we saw throughout the rest of the quarter, is a gradual strengthening of the dollar. And in some cases, some of those currencies by the time we ended the quarter were sort of better by 1% to sort of 4% – 3% to 4%. So – all of that has created that $1.2 million of pressure in Q1. Now since that was gradual, that was sort of the impact on Q1. As you look to Q2, Q3, Q4, again, right now, we – our guidance is based on rates as of March 31.
And of course, actually, the dollar has strengthened a little bit versus that time. But as you can imagine, if it was $1.2 million in Q1 and those rates gradually move throughout the quarter, that becomes almost double the headwind as you look through every quarter going forward. Again, these are things that, hopefully, as we move to an FX-neutral growth rate focus in terms of our guidance and how we calculate and present that, I think we’ll help neutralize some of this noise. But for now, again, being sort of an international business, that is something that does impact our numbers. But however, as you saw, we were able to offset a lot of this with and ensuring that we keep to sort of our margins and also we maintain our commitments for the year as far as topline.
Does that help?
Dan Perlin: Excellent. Yes, that’s very helpful. Thank you so much.
Operator: Thank you. Next question comes from the line of Will Nance with Goldman Sachs. Please go ahead.
Will Nance: Hey, guys. Maybe I’ll start with a more numerical question. Just on the point of FX just to make sure we’re all kind of level setting on the same thing. I kind of glance quickly at what FX rates have done quarter-to-date. I know you’re using the 1Q quarter in spot rates in the guidance. And it seems like the FX rate kind of magnitude – and I’m eyeballing this is kind of like roughly half of what we saw over the course of the quarter. But maybe you could help put a finer point on if we were to use current FX rates instead of FX rates at the end of the quarter, what would be the incremental impact to the revenue guide relative to – I think you said $8 million or so the adjustment of the full year guide from the 1Q movements?
Cosmin Pitigoi: Yes. So I would say right now, if you – so we actually did see the dollar weakened just a little bit the last few days. So if you were to look sort of as of even today, there is a little bit of pressure, but I would say it’s in kind of the very low single digits for the full year, sort of almost around $1 million or less. So it’s a very small sort of immaterial impact, but it is pressure. It’s not really material. So again, less or less than $1 million, I would say, for the full year, somewhat evenly spread throughout the quarters.
Will Nance: Got it. Okay. That’s helpful. And then maybe just a bigger picture question. I think you mentioned the TAM growth around high single to low double digits. I’m wondering if you can unpack that between sort of pricing and the kind of tuition and price increases, that sort of thing – on college campuses around the world? And then how much of that comes from sort of the growth in the number of international students across the different geographies? And I ask that, that second part seems to be the point that’s more at the beta right now, just given all of the immigration controls going up around the world. So I’m just curious what kind of growth in international students are you expecting over the years? And then when you look at the components of NRR in the education business, what is the kind of same-store sales on the number of students contributing to that NRR? Thanks.
Mike Massaro: Hey, Will, sure, I’ll jump in and take that. So again, if you look over international since the last couple of decades, right, you’ll see kind of a low single-digit, low mid-single-digit variation if you’d normalize out for the COVID period. And so that, I would say, is our broad view of international student growth over time. And then when you kind of break down some of the information that’s in the supplement, I think when you think through just where we’re seeing growth, right, there’s obviously going to be industry-based dynamics that help drive it, right? So whether that’s tuition increases, again, you’re going to see relatively modest growth there, but I always joke I’ve never seen a tuition bill go down.
And I got four kids. So again, you’re going to have some component of average transaction size increase over time. You’re going to see growth of international students. And the other thing I’d just tell you to remember, especially in the education vertical is just that land-and-expand strategy being a huge area for TAM expansion for us there. That’s a significant part of that TAM and kind of the explanation of the single digits where we are today and the opportunity we have embedded in that customer base. So hopefully that helps…
Cosmin Pitigoi: I’d say. So what you heard me describe, too, is where a lot of these players maybe are behind. A lot of these clients are behind and verticals are behind sort of the curve in terms of adopting more automated sort of payment solutions. So we do see that also now picking up and a lot of them sort of whether it’s because of looking for cost savings or automation capabilities. We do see that tailwind from the efforts of – in all of these verticals, if you can name any one of them are really looking to save money. And so a lot of it is around automation. And they’re going to be looking for customized software solutions, so we play right into that space. So I think that’s – so on top of that secular growth, we come in with a very sort of targeted solution for them.
Operator: Thank you. Next question comes from the line of Darrin Peller with Wolfe Research. Please go ahead.
