Operator: Thank you. Next question is coming from Timothy Chiodo from Credit Suisse. Your line is now live.
Timothy Chiodo: Thanks a lot. I want to ask about Merchant Solutions. here. I wanted to ask about Merchant Solutions gross profit growth, specifically, if you could put a little bit more context around Q2, I believe it had to do with the mix and the partner channel, et cetera., but also about what’s implied for second half gross profit growth for the Merchant segment within the full year guide.
Bruce Lowthers: Yeah. So again, I think carrying forward from Q1 into Q2 and I’ll let Alex answer, but still see a little bit of that product mix in our ISO channel (ph) impacting the margin but we are seeing really good growth in our e-comm business. So over time, that will start balancing things back out on a margin basis as we’re moving forward. Obviously, our e-comm margin is a much better margin than our reading book. So you’re right. [Multiple Speakers] yeah. Go ahead.
Timothy Chiodo: Sorry about that. I was trying to get to the implied growth rate for gross profit for the second half for the Merchant segment.
Alexander Gersh: I don’t think — I think the gross margin doesn’t change because the changes to direct as well as e-commerce, but we’ll certainly see acceleration in second half of the year on the e-commerce side and hopefully, in the direct side, mix — in the mix side, I think it may — in terms of the gross margin itself, it won’t change in the second half. We will see that acceleration. And then hopefully, in next year 2024, you’ll see the changes.
Timothy Chiodo: Okay. Excellent. Thank you, both. If you don’t mind a brief follow-up. So you mentioned that the direct channel was more of the focus, and that’s the higher margin. Could you just talk a little bit about what the direct channel growth was in the second quarter and also what’s implied for the second half of the year?
Bruce Lowthers: Yes. I don’t have the direct channel growth in front of me, but we — our direct channel on the — in aggregate, I’m just trying to do the math here in my head, but we’re probably mid-single digits in aggregate on all of our direct channels. So it’s progressing. We’re moving along. The sales transformation is taking place, bringing on board changing the marketing strategy around the direct channel. So we’ve had a lot of moving pieces there. I feel very good about the progress that we’re making. With the direct channel and really, to be honest, very bullish about the direct channel as we move forward.
Timothy Chiodo: Great. Thank you for that, Bruce. Okay. So mid to singles. So it’s not – it’s below but not too far below total segment growth. That’s really helpful. Thank you.
Operator: Thank you. [Operator Instructions] Our next question is coming from Jamie Friedman from Susquehanna. Your line is now live.
Bruce Lowthers: Hey, Jamie.
Operator: Jamie, perhaps your phone is unmute. Please pick your handset or take your phone off mute.
James Friedman: I’m sorry. Sorry about that. I was on mute. I was hoping you could help us unpack a little the relative size of the e-commerce business, the iGaming business and the gambling business, any dimensions related to those would be helpful.
Bruce Lowthers: To unpack the iGaming e-com — and what was the other one, Jamie, I’m sorry.
James Friedman: Gambling
Bruce Lowthers: In our e-com business, it is predominantly driven by our gambling merchant acquiring business. Obviously, our gambling business in total is a much bigger piece or right around 30% of our total revenue stream that the merchant acquiring piece of e-com is a much smaller piece, obviously, as we’ve talked about extensively in the past. So gaming is going very well. I feel very good about that vertical. Obviously, the e-com piece, the e-com component of that and our ability to now cross-sell into our existing customer base whether it be APMs or merchant acquiring. We’re having a lot of success with that into the existing customer base. And so we’re seeing real good growth out of that segment.
