Eyal Harari: So, Alex, as you know, we – and as we mentioned before, we see our gross margin is trending to improve as the revenue goes. We create some efficiencies that allow us to improve with scale, also the gross margin and we are a software company and this allows us to be very profitable with incremental revenue. What we are seeing now is depending as you recall on our revenue mix and it trends that similar higher level is what we are looking for on the long run. This being said, on the quarter-by-quarter, there might be some fluctuations and we expect to vary between the range of the 70 to 75 most, but trending to the 75-ish range as the revenue continues to grow. And this again, a comment below was driving us with the significant improvement of our profitability, which is starting to be very sizable.
Alexander Henderson: Great. So it’s logical then that we’re going to have a 74-ish type margin here for the year. Is it reasonable to think that we’re at least 74 in 2024? It sounds like a good outcome.
Eyal Harari: It’s very hard to estimate exactly because there might be some fluctuations, but you see what our performance in the last couple of years, you see the trend and I think this is what we are heading.
Alexander Henderson: Okay. Then on the OpEx side, can you remind us of what percentage of your cost structure is shekel based and what portion is outside of Israel? Obviously, the shekel weakness is setting up for a pretty easy set of compares on the OpEx in Israe?
Eyal Harari: So, about 40% of our employees are based in Israel, most of them are high-paid employees, so I believe around 60% or so, 60% of our cost is based on shekels, something in this range.
Alexander Henderson: So, have you guys done any hedging or are you [indiscernible] on that?
Eyal Harari: No. Typically, most of our cash is in U.S. dollars and we did in the past from time-to-time some very short and edging if required, but currently we are mainly leveraging the shekel weakness and part of what helps us to continue for profitability.
Alexander Henderson: With given guidance, is there any reason to believe that it is going to be any more than 4% or 5% growth in OpEx because given the shekel level, it’s a pretty good offset to any spending growth. And what do you think the merit rates look like in the 2024?
Eyal Harari: Again, we are still building our work in for 2024, as we speak, if I look strategically as mentioned, we keep our R&D in similar levels and we continue to incrementally increase our sales and marketing as we see additional opportunities and we want to have better coverage. Of course, foreign exchange fluctuations are not something we can expect. I guess once we have the 2024 plans, we will have better modeling expectations, but the important part in this stage is that all things are trending very consistently, the revenue growth, the profitability, the gross margin, so I think we can get a good sense of the model for the company and where we are heading.
Alexander Henderson: Going down on the income statement, I was a little surprised the interest income declined quarter-to-quarter as you are generating solid cash, interest rates are rising. Is there some charge or something of that sort in that line that causes it to come down to $240,000 quarter to quarter?
Eyal Harari: So, Alex, can you repeat the question, I couldn’t hear you well.
Alexander Henderson: I’m sorry. The interest income line declined $240,000 quarter-to-quarter. Given rising interest rates and rising cash balances, I would have thought it might have gone the other direction. Can you talk to why that occurred? Was there a charge or some offset and do we expect it to recover sequentially in the December quarter back to the June quarter level?
