Samuel Jonas: Yes. I mean again, I think we view ourselves really as a trusted partner like through good times and bad times. When a retailer is struggling, we are there to help them with their cash flow. When we see problems that they are having, we want to come in and solve them. That’s our goal. And I think that, that’s the reason why we succeed. And yes, we are not embarrassed that we want to make money by providing value to our stores. But we are there for them in good times and bad times.
David Polansky: Great. Fantastic. So, are there any early learnings from the Uber partnership, or is it kind of too early to tell?
Samuel Jonas: The Uber partnership actually hasn’t like officially, I will say really launched. I mean we signed the deal with them, but it doesn’t start rolling out, I would say until I believe €“ I believe early in January, right after the holiday season. We didn’t want to launch it during the holidays when things are harder to manage. But again, I have no doubt that the Uber partnership is going to be a major benefit for these stores. I mean for one, it’s by far the cheapest option to do delivery other than possibly doing it yourself and only if you have a lot of deliveries. And again, most of our stores don’t have a lot of deliveries. So, this is really a great option. It’s a great option for customers as well because again, we are not really trying to make a lot of money on the specific product.
Again, this is another example of us doing something that retailers need where we will make a profit. But again, we won’t make a ton of profit. Our goal is not to €“ like an Uber to mark stuff up 30%. Our goal is to bring it to them for as close to the cost that they pay for it in the store and allow retailers to sell stuff to customers even when they are not in the store, like that is our goal, and that’s what we intend to do.
David Polansky: That’s fantastic. I want to jump to net2phone. I think we were initially thinking about net2phone being closer to EBITDA breakeven at the end of this fiscal year, and that’s obviously tracking well ahead of what we initially anticipated. So, I would love to see that. But is there anything we should be aware of from like anything one-time, or do you think it’s sustainably going to be profitable from here, or I just want a little bit of color on that.
Samuel Jonas: I mean listen, my personal opinion, is it sustainable, I mean listen, the beauty of the net2phone business is it has very, very low churn €“ and its revenue is pretty predictable. So, the more lines you sign, the more revenue you have and the more profit. And as long as you manage your costs well, which again, I think that we are really good at, you are going to see continued improvement in the bottom line from that business. And not to mention the fact that like a person I am extremely excited about the CCaaS business that they acquired and its potential to really bring up the ARPU of the entire business as well as enhance the product overall. I think it’s really headed in a great direction. And I am happy that we own more of it for longer, although that was not the plan.
Marcelo Fischer: Yes. David, I want to note to the models. And it’s just very good performance right now. Churn is doing very well. ARPU is doing great. I mean we are really focused on how we are deploying capital, acquiring customers in the countries that generate most ROI. So, yes, Q1 was a good surprise for us. We thought we are going to be EBITDA positive end of the year. We are not EBITDA positive now. And I believe this is now the baseline. So, hopefully, in order to continue this way, we will be able to be coming back to calls later this year and start saying when we are going to become actually free cash flow positive, not just EBITDA positive, as you know, net fund spends are a large number of dollars in CapEx acquiring the IP phones that we give to customers. But the rate €“ at the rate are going we might be talking already in fiscal €˜24 about becoming free cash flow positive.
Samuel Jonas: €˜23, you never know. Every day, we really €“ again, like we focus on optimizing the business to make sure that, again, we are bringing on customers for the right price and the right kind of customers in the right areas where we get the right paybacks. And as Marcelo said to you already, like we think it will only get better from here.
Marcelo Fischer: And it’s great to say that the business is still spending about $20 million a year or so acquiring customers, and they are very close to be completely self-funding.
David Polansky: Well, that leads into my next question, which is, I think multiples in UCaaS well and in point of sale, too, so across basically everywhere that you are competing, multiples have come down quite a lot. So, as you get closer to being self-sustaining that obviously opens up the door to have sort of self-funding M&A. So, I am curious, should we be thinking about anything on the horizon as it relates to M&A?
Samuel Jonas: We don’t have any big M&A plans in the work. I can tell you that much for sure. I mean I am always open to looking at things that I think will be synergistic and will enhance our bottom line. That being said, I also think that M&A can have the effect of taking your eye off the ball. So, again, we are not thinking that in any rush do anything. And we are €“ right now, we are focused on improving the business. And when valuations do come back, we think it will be even a much more valuable company than it would have been.
