Scott Buck: Hi. Good afternoon guys. Thanks for taking my questions. Bryan, are you guys seeing any hesitation so far here in the first quarter from the consumer, just given some of the macro uncertainty?
Bryan Lewis: We’re not seeing it yet, right, and believe me, I live by the transaction volume stats, right? So we’re watching it and I’d say that certainly there are certain retailers who are off where they were, but they’re also having just bigger problems in terms of just running their whole business. But I think that we watch it almost every day. We get, I get a nice report from my FP&A folks every week. We can see volumes where they stand by client and then within client by retailer, we can break it down to store. So nothing yet. It is certainly something that we’re watching very closely, but certainly does seem to be the weirdest recession of all time.
Scott Buck: That’s helpful. And this was the second consecutive quarter of positive adjusted EBITDA. I guess as the business scales, how should we think about the ceiling for EBITDA margins?
Bryan Lewis: You guys all know how much I hate accounting, which is why I’m always happy that I got Jeff on the phone. And again, I just go back to the fact that it’s not like we have to staff up with tons of people. I do not need a lot more IT people. Probably could use more sales people, there’s no doubt about that, as more and more verticals come to us that we know can really benefit from our product, it would be great to have people that could focus on those verticals. So we’re going to look to hire people. As I said on the call to me, brand is really important. I want to make it easy for the salespeople to be able to differentiate who and what we are from all those other vendors, right, and what they’re doing and how we provide again, and our clients tell us this a much better client experience.
They’re not torturing than 99% of people who are good to catch the 1% who are bad and help them with that message. So we’re going to be spending money on marketing, we’re going to be spending money on sales people. But it’s not a ton.
Scott Buck: All right. Fair. I think that’s it for me guys. I appreciate the time. Thank you.
Operator: Our next question is from Jeff Van Rhee with Craig-Hallum Capital Group. Please proceed.
Jeff Van Rhee: Great. Thanks for taking the questions. A couple for me, I think Bryan, in terms of billings, it looks like they’re down slightly sequentially year-over-year. Did they meet your expectations and what would you, as you look at ’23, what would be success for sales with respect to billings?
Bryan Lewis: Yeah, so I guess a couple things, and again, I look at SaaS revenue. To me that’s the most important thing because that is what is super sticky. And, I swear I’ll never do a large hardware sale for the margin you make on of it. It just throws off everybody’s, modelling and screening tools and all that kind of stuff. So our SaaS revenue, went up as it did. I’ve told the sales team that if we didn’t do at least as well as we did last year with what I think is a much better team, I would consider that a failure. But I think that, I think that we’ve got the wherewithal on the team to hopefully do better. I think a lot of it will depend on timing of when do some of the things we have in the pipeline that are other financial services companies, when do they come live? But yeah, I’m excited about the year
Jeffrey Ishmael: Jeff, real quick, just to reiterate on Bryan’s point too, is equipment revenues are not part of our FY ’23 budget. It is strictly a SaaS-only based budget equipment. Is not part of the plan.
Jeff Van Rhee: Yes. Understood. And just Bryan, on the comment about the sales doing at least as well as last year, is that in terms of SaaS growth or are you talking about in terms of absolute billings?
Bryan Lewis: SaaS growth.
Jeff Van Rhee: Okay. Helpful. On customer ads, you’ve got obviously kind of a barbell distribution of the size of your customers. You’ve got some megas and then you’ve got some, quite a few smallers layering in. In ’22 for the year, how many customers did you add that were doing over a $100,000 in revenue?
Bryan Lewis: I don’t have that. I’m actually on the road meeting with some of our big clients. I don’t have that in front of me, but it’s something that I’m sure Jeff can get together quickly.
Jeffrey Ishmael: Okay. Jeff, I’ll circle back before the end of this call and get you that stat.
Jeff Van Rhee: Sounds good. And then maybe just lastly, the pipeline, sounds like obviously, quite a bit of satisfaction I guess with the size and scope, but I’d love to push you to go a little further and describe what’s in there, with respect to the use cases, the deal sizes, obviously I’m curious digital, non-digital and best of all, I’d love to hear an absolute number or percentage growth over a year earlier, but that’s quite a bit. What else can you share on the pipe?
Bryan Lewis: I would say that almost every single client is a combination of, well, either fully digital or a combination of digital and on-premise, right? So digital is just what everybody is doing. Even, your financial services company number two wants to accelerate us into a lot of the clients they have on the digital side that just, we weren’t integrated there. They see that as a big area right now where, it’s a big fraud vector when so many can — doesn’t have to stand in front of you. So digital’s going very, very well. I’d say it’s a combination of a lot of different verticals, A lot of like, some buy now, pay later. Lending companies, automotive continues to be just like a steady machine and then again, also some very large age restricted, because I don’t really focus on bars and restaurants.
They come to us, but some of these big concession groups that run, big concert stadiums and all that kind of stuff. So it’s really, it’s a broad portfolio, which kind of makes me a little bit happier because, I didn’t want to be just one sector where, for a while that’s kind of what we were. So we were at the whim of particular markets. Now I think what we’ve expanded enough that, we’ve got a much broader base, broad base makes me happy.
Jeff Van Rhee: Okay, great. I’ll leave you there. Thank you.
Operator: Our next question is from Mike Grondahl with Northland Securities. Please proceed.
Mike Grondahl: Hey guys. First question, any renewals in ’23 that we should kind of be watching or hearing how they go?
