John Janedis: And Clark, one last thing, it didn’t add this directly but indirectly because they are related. We did have a positive gross profit in the fourth quarter. And I would, again, say that we expect positive gross profit for the year, variability quarter-to-quarter given seasonality, but I would say we should be comfortably gross profit positive in 2023.
Operator: Your next question comes from the line of Phil Cusick from JPMorgan. Your line is open.
Phil Cusick: Hi, guys. Thank you. I wonder if you can just talk €“ go back quickly to the free cash flow. Your working capital this quarter €“ in the fourth quarter was a nice support of cash. I wonder if you can expand on that and whether that’s durable from here and can continue? And then you’ve got a number of content contracts coming up in 2023 and €˜24. What do you think is the potential to actually reduce per subscriber fees on those rather than just see slower increases than you’ve seen in the past?
David Gandler: We can take this €“ yes. Well, look, as I said, when you look at the streaming losses, relative to the payments that we are sending out monthly and you look at our growth rate relative to affiliate growth rates, it’s clearly we’re overpaying. And so, we’re at the moment in time where we feel very comfortable that we only need 80% of the gross rating points to continue to grow meaningfully and take disproportionate share where we continue to do quarter in and quarter out, which was particularly evident in the fourth quarter, two other reporting companies. So, we’re going to make that note. And the good news is that we dropped a number of partners over the years. And as we see from the , we will work on deals that make sense that are mutually beneficial, and we will bring content partners back and continue to optimize our content bundle well into 2025.
But this is clearly one of our main items that coupled with advertising and again, just based on early indications from a retention perspective as well as the relatively limited impact with respect to the content drop on December 31, coupled with the affiliate drop as well. On the CBS side, we feel very comfortable that we’re in very good to negotiate improved deals.
John Janedis: And Phil, I would just add on that topic. The years or so that I’ve been here, I’ve probably seen about, call it, 10 deals of varying size over the course of the past 12 months. And the majority of those did see rollbacks as it relates to pricing of those deals. So that may be able to help you a little bit around that to have some context. In terms of working capital, look, there are obviously some swings. It’s something we work on constantly. There is also some seasonality to it. So maybe we can help you more with that offline, but we can end try and grind that to our favor.
Phil Cusick: If I can follow-up, I see the headlines coming across now on the $68 million. So can you just remind us, you did, I think, $60 million in the fourth quarter, another $68 million this morning, and you say there is probably more ATM to come to build your cushion. But without that, do you think you could be €“ get to that breakeven point in 2025 on your numbers?
David Gandler: I would say that we will get close to those numbers without any further capital raise. And so what we said before is the need is relatively modest and I would say now that we feel very confident that we can get there in the short to medium term as the capital is at a price that we’re willing to accept.
