David Katz: Hi. Evening, gentlemen. Thanks for all the detail. I wanted to maybe just take a longer-term view and looking at the revenues growing right in the double digits out for a couple of years and I know you’re on the cusp of pivoting to profitability, but is there an aspirational margin level you think you can get to for this business one day. Like people look in Europe right 25%. I mean, are those kinds of things achievable. And do you have what you need over time to get to that place
Richard Schwartz: Yes, David. Thanks for the question. I think we do see a real opportunity to have this business drive long-term consistent and sustainable profitability. And I think the range you talk about is not unreasonable. I think our view is, we’re in the very early innings still of this industry our company’s growth profile. So we’re going to get leverage over time. We’re — as we talked about, we’ve continued to invest in our technology team and our corporate infrastructure and we’re doing that still this year, but we will get leverage over that — those costs overtime. Our ramp in marketing costs over the last couple of years has been really significant. That’s for the industry, but it’s been significant because we’ve got so many new market launches and so many new market launches relative to the total markets that we had live at the time.
So that’s impactful on the revenue relative to — or marketing spend relative to your net revenue. So that headwind decreases as each market launch becomes less impactful in total cost base. So I think you’ll see marketing as a percentage of revenue decline as markets mature and as you have less new markets launching relative to the total. And we’ve also talked about gross margins should continue to improve over the coming years due to scale and cost improvements. And as our revenue mix changes and we grow more in some of our higher margin state, some of our earlier state that are larger for us have lower gross margin profile. So an example, no surprise to you, but Pennsylvania has very high tax rate, of course. So I think all those things give us a lot of excitement about the leverage we will get and driving stronger EBITDA margins over the long term.
David Katz: Okay, perfect. Thank you.
Richard Schwartz: Thanks, David.
Operator: Our next question is from Ryan Sigdahl with Craig-Hallum. Your line is now open.
Unidentified Participant: Good afternoon, guys. This is Will on for Ryan. Thanks for taking our questions. First I wanted to touch on, you talked a bit about parlay mix and it being up 30% year-over-year. I was wondering if you had any insight into how in play mix trended during the quarter?
Richard Schwartz: Yeah, we haven’t typically disclosed that one. I’d actually have to look. I don’t know if it was a huge difference for us in NFL. It’s generally trending up, but I don’t have that number in front of me. We can get back to you on that.
Unidentified Participant: Perfectly fine. And one more from me. With the potential for new competitors in Pennsylvania, especially in the iGaming market, there has been a bit of talk about them opening up bidding to new operators. Curious what you guys are going to do to defend your leading share there?
Richard Schwartz: Yeah, I’ll take that one. Since we started this business over 10 years ago we faced consistent competition, new and existing competition coming in markets, leading markets. And I think we’ve done a really nice job of maintaining our share well above our fair share based on our invested capital in these markets. So I think Pennsylvania is a great example where for years we had a large shares early we have a great brand there and be able to develop a great experience for the players and we’ve been able to retain market leading share, for example, the online slots in that market despite constant new entrants coming into the marketplace. So, I do agree that the intensity of Pennsylvania will continue to be there from a competitive standpoint.
