John Morris: Yes, I’ll start. Specifically, we still think for all the reasons we talked about on the call, and you’ve heard us say before, organic growth with the total addressable market they’re sitting in front of us and ahead of us. We still think it’s very valuable. And we’re going to continue to drive our organic opportunities, which we’re doing and we’re executing on always. And the Consumer Payments, we’re going to drive more investments in our enterprise sales, which is embedded in what we’re seeing we’re going to do and then obviously enhancing our integrations as we talked about on a couple of those questions there. And then Business Payments, like I was mentioning on our enterprise software integrations, we think there’s significant opportunity for us to continue to invest there.
Obviously, we’re going to continue to enhance over our implementation, enhance our ERP partnerships, building out our overall network of suppliers. We think there’s great value in our 279,000 plus suppliers today. We see significant opportunity as we continue to add there as we bring on new clients by vertical. We actually like to do that by vertical as well. And then overall automation, we desire to be larger to drive scale. We think it’s a great opportunity for us to do that in payments. We’re obviously using things with AI to try to drive more efficiencies in our business, operational, client, customer service, implementation, things around that with automation. And then I’ll let Tim maybe speak to the M&A side.
Tim Murphy: Yes. To add to that, like John said, our number one priority from a capital allocation endpoint is organic growth and funding additional organic growth and for all the reasons John described. And then we like to balance our net leverage against managing the convert liability. And so that’s another priority of ours. And from an M&A perspective, we do have an in-house team that is sourcing deals, evaluating deals and we haven’t done an acquisition close to 2.5 years. So we’ve been remaining disciplined on that front, but we do have a very healthy pipeline building. And we’re in various stages of discussions with targets across Consumer Payments end markets and then Business Payments end markets. We like the AP vertical a lot within Business Payments, and there’s a number of targets we see there to build out either our number of verticals we’re in, supplier network, a number of ERP integrations and just generally add scale to our Business Payments segment.
So those are some of the areas we’re focused on, and we will continue to be disciplined.
John Morris: There’s some potential attractive tuck-ins.
Operator: [Operator Instructions] Next question comes from Pat Ennis with UBS.
Pat Ennis: So on — I mean, you’ve talked about competition and coming across the traditional scaled payments companies such as Global Payments, Worldpay, Fiserv and not really coming across those guys as much. It’s been some time since you’ve talked about these competitors in your core consumer finance markets. Could you maybe touch on how that market has evolved if those comments still hold for the most part?
John Morris: Those comments still hold. Those specific ones you named, I don’t recall in any particular bake-offs or if we’re competing against someone those particular names. We have the unique integrations that really make these things. Our vertical focus go-to-market is unique with our unique products around that. If you don’t have all those features functionalities with those unique integrations — and so we just don’t — we don’t bump into those specifically. It doesn’t mean we couldn’t. And in reality, we’ve got a healthy pipeline, and we’re winning.
Tim Murphy: I’ll add to that, mainly focused on consumer, like John said, we don’t typically see those names. And one of the reasons we’ve chosen to address these end markets is because they’re not only very large, but they’re underserved from a payment perspective and underpenetrated from a card perspective. And so we really like our position in those end markets within consumer. And then in the Business Payments side, as we touched on earlier, most of these are not competitive takeaways. They’re just moving clients off of paper-based legacy forms of payment on to digital payments, specifically virtual cards. And we just — it’s an education to the market of why they should be outsourcing their payables versus your real competitive dynamics.
Operator: I would like to turn the floor over to John Morris for closing remarks.
John Morris: Thank you, everyone, for your time today. We had a solid start to our year with double-digit organic growth. We continue to make progress on our strategic initiatives as we talked about on our call. We are excited about this multiyear growth opportunities that we’ve also talked about that we think can give us fantastic opportunities even in the outer years. And our execution of our 2024 outlook, we continue to execute on that to accelerate free cash flow, which we think we’ll be able to do that for the continuation of this year to hit our goal for 2024. Thank you for joining us today.
Operator: This concludes today’s teleconference. You may disconnect your lines at this time. And thank you for your participation.
