Keith Jezek: Yeah. Thank you.
John Flynn: Vincent, it’s also worth noting that one carrier can make a change all three have to agree to it. So it’s not like one and decide they want to slow down by changing an underwriting rule.
Vincent Caintic: Yeah. Great point, John. Thank you.
Operator: Our next question comes from the line of John Davis with Raymond James. Please proceed with your question.
Unidentified Analyst: Good afternoon. This is Madison on for JD. I wanted to start on OpEx. I think it will step down again in 1Q based on the guide, but is there a way you can help us think about the right OpEx run rate just given the current macro backdrop and some of your comments around retention and investments throughout the year?
Chuck Jehl: Yeah. I mean, Madison, as you pointed out, at the midpoint of the guide for Q1 since we just went to a Q1 outlook, I think, a slight downtick there from obviously Q4 levels. And — but, again, as we think about our investments in 2023, as we invest in the business, these are measured thoughtful investments and we can slow those down if we need to the pace of those investments in our business. So I’d just say in that range of Q4, but probably slightly down a bit just on the Q1 guide on OpEx.
Unidentified Analyst: Okay. That’s helpful. And then I understand near-term margins are under pressure, a lot given the macro headwinds. But just as we think about the longer term model, is there anything structurally that’s changed that would limit your ability to get back to that 60% plus EBITDA margin over time?
Chuck Jehl: If we think about margins, we want to grow our business, and obviously, there’s headwinds today and challenges that as we invest. And if you think about the Q1 outlook, the margins are so 43%, EBITDA margins to 50% from the low to the high. We think that’s temporary as we invest in the business now. As others are retrenching and not, we look at this as an opportunity to really be positioned well for the pent-up demand as the industry and auto specific recovers. So we believe our margins will improve as our revenues go up and we can leverage the SG&A that’s on the books today.
Keith Jezek: And Madison, this is Keith, and thanks, Chuck. I will just add on those investments and why we feel it’s the right time. As Chuck mentioned, these are all measured and prudent investments that are based on through the lens of data and analytics to make sure that the right investments at the right time and they fall into two very simple camps. The first is increasing our capacity and number of lender partners as capacity per lender customers down, it’s important to grow overall capacity. So, when the market comes back, it will rise together. And then the second one is in the technology investment in product and that’s simply to help our application volumes flow as best they can through our funnel, especially when the time when applications are down. So they are around increased market penetration and they are around increasing volume of outflows given the current environment.
Unidentified Analyst: Okay. Got it. I appreciate the color and thanks for taking the questions.
Chuck Jehl: Thanks, Madison.
Keith Jezek: Thanks, Madison.
