Mike Grondahl: Hi. Thanks, guys. Two quick questions. One, that $50 million you spent processing customer apps that don’t really turn into real customers, what would your goal be how much of that can you eliminate? And then secondly, are you guys doing anything incentivizing small business customers to hold higher balances with you or to grow those balances. Anything you’ve done in the last, I don’t know, 120 days that kind of incentivizes those small businesses.
A €“ Bea Ordonez: Sure. Thanks. We appreciate the question, Mike. Look, in terms of that $50 million, we felt it was useful to size that and provide that kind of disclosure. And over time, yes, we’re going to see the benefit in our adjusted EBITDA margin or in our adjusted EBITDA performance from a, more focused acquisition strategy that we talked about and b, from the efforts that we’ve begun to talk about related to our new onboarding platform. So we see the cost, as you know, within our compliance and our operations area. But to be clear, we’re not saying that, that $50 million goes to zero over any kind of time line. Any business analysis if that is like analysis SMB is going to impair costs on prospects that don’t ultimately become profitable moment.
But we do see a meaningful opportunity, right? That’s a significant drag — was a significant dragged earnings in 2022, and we expect to begin to capture some of that benefit or some of that opportunity as we said in our exit run rate as we begin to move some of that onboarding volume onto new technology with the full capture, and we’re still sort of working through fully cycling that, heading up in 2024 as we fully onboard that. In terms of your second question, look, as we’ve noted, we view interest income revenue as really core to our value proposition. It demonstrates the functionality that we deliver to SMBs. It demonstrates the trust that they place in us. And we’re actively evaluating how we can continue to grow that revenue. I think we’ve been very successful doing that to this point and driving greater monetization of those balances.
Over the long term, as your question implies, that could certainly involve sort of product development initiatives that incent customer behavior to grow the balances. And in the near term, I think, we have an opportunity with our scale to continue to increase our monetization. And we’re also actively thinking through strategies that will both maximize our yield and manage the more earnings consistency through different interest rate cycles. So, again, it’s an area that we think about carefully. We think its core to our business. And we’re really looking to find sort of near and long-term strategies to optimize that revenue stream.
Mike Grondahl: Thank you.
Operator: The final question today comes from Daniel Krebs of Wolf Research. Please, go ahead. Your line is open.
Daniel Krebs: Hey. This is Daniel on for Darren. I was wondering if you could give any qualitative color on the Payoneer to Payoneer volume, which would be helpful. Are you seeing any increases or changes to client activity on the platform there? Are there any efforts to explore monetizing these volumes over time, or what’s the ultimate opportunity here? Thank you.
John Caplan: Hey, Daniel. There is — it’s a great question. It’s an area of focus internally here. We see billions of dollars of payments between Payoneer account holders, right? We have — Payoneer has built a global trust economy between small businesses that are increasingly recognizing. If you’re paying your customer and have a Payoneer account, doing business with one another is a positive way to grow your business globally. Your second question about monetizing those flows, yes, we are exploring and looking at different methods to do so and looking at the behavior of each of those customers to optimize exactly the future of how that product gets developed, we’re working through that strategy in real time. There’s nothing new to announce today, following up from my comments on our last quarterly call.
