Greg Daily: We do self-source our deals from beginning to end, and we do explain to our targets that the market’s down, valuations are lower. They tend to understand that. We lean more on — we’re building a team. We’ll take care of your key employees. Here’s 20 references for you to talk to. We just don’t get involved in auction processes, and the story is very well received. They like what we’ve built, they like our reputation, they like our culture. So being able to pay seven or eight times versus we were paying, we paid up to 10, I think going forward, until the market changes, paying seven or eight is probably more the model going forward. Do you want anything to add, Rick?
Rick Stanford: Yes, I would just say, we’ve been very successful in taking the business and growing it over time. So that overall multiple goes down over time. So if we start in that range — and again, we’re being very selective at this point. We’re not at a break neck pace that we’ve done in previous years. Four or five deals a year of high-growth companies, really good structure and strategic software companies within our verticals. I don’t think I mind paying the six to eight knowing that over time, we can grow that business to drive the multiple down overall.
James Faucette: That is great to hear. Thank you so much.
Geoff Smith: Operator, do you have any more questions?
Operator: Yes. I apologize. My line was on mute accidently. I just unmuted Mark Palmer’s line from BTIG. Please go ahead sir.
Mark Palmer: Yes, thank you. Good morning and thanks for taking my question. So far as software has been a growing portion of the company’s overall revenue, how should we be thinking about the gross margins for software compared to gross margins for payments, and how do you expect consolidated gross margins to evolve over time, given that changing mix?
Greg Daily: Mark, I’ll refer you to Page 2 of our supplemental information, revenue composition and payment revenue is probably averaged 60% gross margins. The top three line items in our software and services revenue mix are probably 90% gross margin, recurring software services and professional services we aim for one third margins, but maybe count on 30% there. And then software licenses, the bottom number, that’s probably 95% margin. And so as software and services become a bigger portion of our whole, it will lift our gross margin — consolidated gross margin over time.
Mark Palmer: Thank you and just one follow-up to that, what is the implied mix of software and payments in your 2023 guidance?
Greg Daily: I don’t have that number in front of me, but I’m confident software and services will go over 50% this year because Celtic today is 100% software and services.
Mark Palmer: Very good, thank you very much.
Operator: That concludes our question-and-answer session. I’ll turn the call back over to Greg Daily for closing comments.
Greg Daily: Thank you, everybody. Thank you, our team. What an amazing year we had in 2022, and we’re very excited about the momentum that we’ve got going into 2023. So with that said, thank you for your interest.
Operator: The conference has now concluded. Thank you for attending today’s presentation. You may all now disconnect.
