Right. A lot of the horizontal have gigantic TAM to compete on the base of an algorithm. There’s very little loyalty to the company. So those types of things will never invested in. Relative to your comment about. Payments business models are we have a variety of business models, software, there’s on-prem their SaaS. We just bought a business that is the integration of SaaS, software and payments. Where you have deep embedded integration with what the company does and products do with the payment stream. And so it’s a business model , we’re open-minded to the business model construct as long as there is immense amount of durability embedded in the business model.
Terry Tillman: Thank you. And our next question comes from Alexander Blanton with Clear Harbor Asset Management. Please go-ahead. Good morning, thanks. May I have some questions on. Broker. And. The first one is
Operator: And our next question comes from Alexander Blanton with Clear Harbor Asset Management. Please go ahead
Alexander Blanton: Good morning, thanks. May I have some questions on. Broker. And. The first one is. You’ve indicated that is not accretive to. Adjusted EPS. Well, this year. Yes, and if not, then there is some dilution. How much is that you might have mentioned that earlier, I might not have caught it
Jason Conley: Yes, hi, Alex, it’s Jason. So we assume around 75 million of EBITDA. And then the interest is going to be. 1.6 billion at, Call-IT, 6%, which is our revolver, our current revolver rate. And so that’s how you get to your calendar dilution number. What is that number in EPS. $0.10 to $0.15
Alexander Blanton: Okay. So that accounts. For the shortfall. And. In the. Guidance versus consensus tender. Did you say $0.10 to $0.15. Per diluted, okay. Now going-forward, if you’re. Growing at double-digits. Mid-teens. That implies you’re going to get some pretty. Good. Accretion. In 2025, correct
Jason Conley: Absolutely, yes. We’re looking for. Is it the accretion after 24 and it will come to like said it’s grown mid-teens. Very good cash conversion dynamics. Have a little bit of a tax benefit this year and next year. And couple of years out after that. So, feeling good about. Contribution to our, to our growth going-forward
Alexander Blanton: Now can you give us an idea of what. The total available market is in their business. And I assume it’s all domestic. At this point. And how do they look compared with that. In other words, what’s your market-share or approximate. I mean I just. I understand that the leading provider, but it looks like it might be a fragmented market
Jason Conley: So the TAM today is about $750 million. It’s growing about 10% a year. Yes. So you can do the math on what we said that’s in the next 12 months-to March 25, it’s 260, so you’ve got to grow the market at 10%, do the math. On their current market-share and their relative market-share position. So, their size relative to their next largest competitor is about 1.5 times. The market we would characterize as having a number of legacy technology players and pro care and the principal competitor are generally re-platforming. The market from a technology perspective
Alexander Blanton: Okay. Finally. In that market. There are different sizes to the. The. Groups that you might be. Serving there are nursery schools, for example, that have several 100. Students. And there are small ones that are much smaller. Where do you fit-in that. Do you are you aiming at the. Or serving the smallest schools as a larger ones or both
Neil Hunn: Really appreciate the opportunity to address this question, because one of the aspects of the business that we like quite a bit. So. The way that we segment the market are basically, enterprise, mid and single operators. So 10-plus centers, one to 10 centers and a single operator center. Pro is the demonstrable leader relative market-share advantaged substantially higher than the 1.5 times at both the enterprise and the mid. And the growth rates and the enterprise and the mid is actually growing faster than the overall market. So the markets the segments where broker also is highly compete very well in the single operator. I don’t want to. Comment on that. They compete very effectively there as well. But the strongest and have the largest market-share in the enterprise and mid, which means that as the market consolidates ever so slowly over-time that accretes to our advantage
Alexander Blanton: Okay. And finally, is there any foreign business there available, or are you looking to get into that or not
Neil Hunn: Yes. International is not a meaningful part of the business today. It is certainly something that we will consider in the long-term strategic outlook for the business, but not something and probably the near-term because there’s so much opportunity domestically to get after.
Alexander Blanton: Okay. All right. Thank you very much.
Neil Hunn: I appreciate the questions and have a great one.
Operator: This concludes our question-and-answer session. We will now return back to Zack Moxcey for any closing remarks
Zack Moxcey: Thank you everyone for joining us this morning. We look-forward to speaking with you during our next earnings call
Operator: Thank you. The conference has now concluded, and we thank you all for attending today’s presentation. You may now disconnect your lines, and have a wonderful day.
