Mark Schwartz: Yes. I think our guidance, Ashley – thanks for the question. It reflects the uncertainty we’re seeing in the market today. So I think if the economy improves, we could certainly see an improvement in our outlook. But you’ve heard us talk about this in the past. We want to share with you all what we’re seeing. And so this reflects what we’re seeing today in the market.
Ashley Lessen: Okay, understood. And then for gross margin guidance is somewhat surprised that you’re guiding down for the full year, I mean, just slightly. But could you walk through the puts and takes for gross margin in ’23, yes. Supply chain is getting better and input costs should be coming down. So what’s the offset? And then should we consider 50% for the new normal going forward? Or do you think you can get back to the high 50% which by the way 48% is still good, but just surprise, it was just a bit lower than what we were expecting? Thanks.
Mark Schwartz: Yes. Thanks, Ashley. I think, again, this reflects the reality that we’re seeing today amidst the macro uncertainty. I’ll answer your second question maybe first. So our long term target and expectation continues to be gross margins returning into the 55% range as we’ve said previously. So that hasn’t changed for us. It’s the timing of it that has changed. And in terms of the inputs and outputs on gross margin for the year, again, we’ve talked about it before FX20, I think Shai mentioned in his prepared remarks, FX20 was a significant contributor to that. It resulted in about a 4 percentage point impact on our gross margin against where we expect the target cost of the FX20 to be for us. That will take another year or so to flatten out.
I think supply chain pressures are beginning — maybe more than beginning to be relieved. We’re certainly seeing warehousing and freight costs coming down, freight in particular coming back down in line. But we still continue to see a variety of challenges throughout the supply chain, while it does — while it has been loosening up, you only need one part of a machine to continue to have a lengthy delay in order to push the delivery of that machine out. So it is still a challenge. We expect these challenges to continue to persist in 2023 absolutely getting better to be sure on the supply chain.
Ashley Lessen: Okay. Thank you.
Operator: Thank you. Our next question is from Brian Drab with William Blair. Please proceed with your question.
Brian Drab: Hi. Thanks for taking my questions. So just to first be clear on the profitability target that you said we’re still aiming for profitability, I think in the next couple of years, but what more specifically are we talking about there? Is it end of 2024 and can you just remind me is that profitable on an EBITDA basis or EPS?
Mark Schwartz: Yes. So we’ve said before we’re not moving off of that statement, Brian. So we’re committed to reaching breakeven by the end of 2024. I think the fourth quarter for us, we believe, is an opportunity for us to be profitable for the quarter. Certainly not for the full year of ’24, but we would expect that in future years. So that continues to be the direction we’re headed. Again, we talk about it all the time. We’ve had good cost controls in place. For some number of quarters now, really since we came public. And we feel like we can manage through any significant changes in the macro environment to continue to meet that target.
