John Morris: James, the thing I would add to that Tim’s that — on those comments, the other thing I would add to that as. We have proven our ability to embed payments into these various different software platforms, we would want to add to our scale across the board for our key core competencies of what we do. And we think we can get great shareholder value with the right opportunities there.
James Faucette: Yes, got it. Got it. Thanks a lot.
Operator: Our next question comes from the line of Timothy Chiodo with UBS. Please proceed with your question.
Timothy Chiodo : Great, thank you for taking the question. Of the 262 software partners. If we were just to look at the consumer payments side, just want to get a rough lay of the land update in terms of how would you describe the need for you to sell into those? In other words, I know that for many of them, the sales folks that REPAY would be able to contact the underlying merchant working with the software platform. Maybe some of them if you could just help us. Some of them you’re kind of the only payment provider and any anyone working with them as automatic business to you. Maybe just break down the mix there? And then I have a brief follow up unrelated on RCS?
John Morris: Sure, I’ll start. Good evening, Tim. We are a direct salesforce. And most all of our software providers are referral partners, as you are aware, in which they’re referring new clients to us, and we’re actually going directly into capturing the clients we don’t already have, which are several of those inside of every one of those of those 262. So we’re constantly going through our associations, our conferences, that in which we are meeting these various new clients. So it’s a direct approach where we own the customer relationship. Some of that is obviously reflected in our margins, but we do partner with them. It’s probably — from a referral basis is probably a 50-50 relationship of us being referred to us but ultimately, because of the payment expertise knowledge needed, because of the omni modality omnichannel part of this, is great value in the financial technology embedded into that and it needs our expertise to onboard of our clients through that process.
Tim Murphy: Yes, and I’ll add, the consumer side, we have 165 of the 262. Like, I think you are saying, we’re often their preferred provider, these software partners don’t need more than, say two or three at most payment providers in their platform. And usually, our integration is more deeply embedded into the platform. And therefore, we get more of the referrals. And then we start calling on the clients directly, which leads to existing penetration opportunities. So we’re often the preferred provider. And we’ve had a lot of these relationships for a number of years. And we’ve gone through an exercise of refreshing the integration, which is some of the CapEx dollars. But that gives us a better opportunity for penetration.
Timothy Chiodo: John, Tim, thank you. But of those answers were very helpful. That’s exactly what I was trying to get at on the 50-50 on the 162. And that extra context is great. The follow-up, RCS. So oftentimes, we talk about RCS as an acquisition that helped with your gross margins. And anytime you bring on an acquired property, you can switch the processing over to RCS, it’s in house, it helps your existing business it helps future acquisitions. But will we often or don’t, as often talk about is just RCS as a standalone business, and gaining processing share and signing up new partners on its own outside of REPAY? Is there any just kind of context you could provide around that? How much of a focus is that? How is that going?
Tim Murphy: Yes, we can I mean, you’re right. I mean, there is a there is an effort to bring on new processing clients, we would call them onto RCS, we have a dedicated sales team doing that. Some of them with a lot of experience in the industry and has a lot of relationships with the various processing — client prospects. And so we do bring on several of those a year. And oftentimes, they’re coming to us from one of the larger shops looking for a more customized solution, enhance customer service, and a more basically a more modernized platform, with windows of onboarding and all the different things we do for them. So that’s how we win there. We, — it’s not from a sales and distribution perspective, it’s clearly not the number one focus, because it’s not the largest part of the business. But we do have an effort there to bring on new clients each year.
Timothy Chiodo: Excellent. Thank you for both of those.
Operator: [Operator Instructions] Our next question comes from the line of Mike Grondahl with Northland Securities, please proceed with your question.
Mike Grondahl: Hey, guys, thank you. First question is just, how are you feeling about the auto and the personal loan end market? And then secondly, just the pipeline sales pipeline? How are you feeling about that? Or how is that stacking up kind of relative to other years.
Tim Murphy: In terms are personal and auto, very similar trends, as we said previously, in prior quarters. We try to stay close to our clients there, but the trends we’re seeing are pretty similar. And in terms of the sales pipeline, I mean, one of the things we like about adding the four or five new software partners each quarter is it just gives us a much larger distribution opportunity and helps to helps us grow the pipeline. And so we feel like we have a really robust pipeline, coming to us via referrals from the 262 software partners and also, just with our direct sales force, we’ve added, you know, we reduced overall headcount in ‘23. But when we did add, we added in areas around go to market, like direct sales, reps and sales support. So we have a very healthy growing pipeline, largely a result of just the growing number of software relationships.
