Peter Cannito: Yes. Well first of all Austin, thanks for joining the call. Glad to have you on. Absolutely right. We’re bidding with inflation in mind, and of course, our customers understand they’re living the same issue. In terms of gross margin improvements, we’re really driving it across the board, right? So, as we continue to innovate and we have technologies like ROSA, like the cameras that are, have always had flight heritage, but now have really exceptional flight heritage on the Artemis, demonstrated flight heritage on the Artemis. These are really differentiated products. So that gives us additional pricing power in the marketplace. So really across all of our product mixes, we’re starting to incrementally drive our margins up. Jonathan you want to add?
Jonathan Baliff: Let me give you the specifics here, because this is actually a really important, because it wasn’t just a record revenue quarter and you saw the progression, but we started gross margin in Q1 of 2022 at 15.7%. We’ve grown it pretty significantly through the quarter. And that’s including some EAC adjustments that negatively impacted it. So, we’re talking about getting to greater than 20% gross margins on an all-in basis. We’ll be providing some more detail as we go into 2023. One thing of note to the investor community is that, the nature of our ESA contracts with Space NV generally have them enjoin a very nice EBITDA margin, but some of their gross margins are going to be slightly lower just given the nature of the classification of their cost and sales.
So just understand that. But on the U.S. legacy businesses, you’re talking about a very meaningful improvement in gross margins. When you combine that with the operating leverage that we’re getting as we scale the business, you’re talking about a business that’s driving towards profitability, not just on an adjusted EBITDA basis, on a net income basis and free cash flow basis.
Austin Moeller: Okay, that’s helpful. And then just to think about 2023, you’ve got $272 million in the backlog, you expect $275 million in revenue. So considering you have 74% revenue visibility for next year. Do you expect most of that existing backlog to convert to revenue this year, or how should we think about the timing of that?
Jonathan Baliff: Yes, Austin, let’s just get the numbers. Just again, you’re directionally correct. But let’s get them right. The contracted backlog more than doubled, 126% increase to $313 million. And then the overall total backlog was $465 million €“ greater than $465 million. And so from our standpoint, those are the numbers that we’re putting out Austin. And again, it’s a pretty significant increase. There’s no doubt that we are very focused on not just converting that backlog to revenue in 2023. And as Pete has said before, it can be kind of lumpy. Okay, guys. But that being said, we’re driving many of those contracts like we did in the fourth quarter to revenue and then obviously ultimately cash flow and profitability.
Austin Moeller: Okay. And then €“ and just one more. Can you go into a little bit more detail about what specific programs are driving the backlog expansion here? Is it mainly iROSA and deployables, or how should we think about the overall percentages of each program €“ product line?
Peter Cannito: Yes, thanks for that question, Austin. It’s actually a key point about Redwire. One of the significant contributors to our stability and our resilience is the fact that no one single program or product or solution is driving over 10% of our revenue. So it’s a pretty diverse base of programs collectively that are contributing to both our backlog and our revenue growth. Jonathan, you want to add anything?