Operator: For your next question, we will turn to Tom Forte of D.A. Davidson.
Tom Forte: Great. Thanks. Just three more relatively quick ones for me. So, first one, how should we think about your ability to price locally to offset the impact of the strong U.S. dollar?
Eddie Lazarus: So, just as a reminder, we did take price in September 2021. And we always want to be careful about not double dipping too aggressively. But we are going to, of course, look at price, especially given the FX headwinds. And so that’s something we will revisit after the holidays, but we have nothing to announce on that.
Tom Forte: Great. And then you sort of touched on this in your prepared remarks, but I was hoping you can talk about a little more. So, our competitors reportedly laying out staff in its hardware unit. From your vantage point, how has the competitive landscape changed over the past year? And is it possible that more companies with diversified business models may scale back their hardware efforts given the current challenging macro environment?
Patrick Spence: Yes. Tom, it’s Patrick. I do think that there has been rumors obviously, of the kind of money that €“ and we know that there has been some companies that have been in this space and using hardware as a way to get into people’s homes for other reasons, right, other strategic purposes and other ideas they have had about potential services to layer on top that haven’t panned out. And so I do think you will see more sanity, quite frankly, return to the hardware space in general. And I think the path that we have been on around sustainable profitable growth is something that you see all companies scrambling now to be able to get to. So, I like the fact we already have that discipline in our DNA. It’s something we always have to keep working on.
But it’s why I believe that right now is an important time to continue to invest in R&D, continue to invest in product and actually go after additional categories because we can do it from a place of discipline, and we can come out of this stronger as others are fearful, we can use it to get stronger and start to enter new categories as well and take more of that opportunity. And so I do see this period as one-off opportunity for Sonos and setting us up for even more growth in €˜24 and €˜25.
Tom Forte: Excellent. Alright. So, last question, I promise. I think this one is important though, because I think some investors misunderstand the relationship between maybe new housing starts and newer sales, so how should investors think about the sales of your products when consumers move versus when they remodel their homes because they are unable to move?
Eddie Lazarus: I would say you have captured the hang at the right hit, the housing starts and movement for housing sales is down just at the moment. But at the same time, remodeling is up. And so when you talk to our IS channel, which really handles a lot of that sort of thing, you find that they are very encouraged by what they are seeing in the remodel market. They have a healthy backlog of orders. And so notwithstanding the temporary slowdown in housing starts and in the housing market itself, because of the balance in that channel, we think we are in good shape.
Patrick Spence: Yes. And certainly, all of those new homeowners from the last couple of years haven’t yet outfitted their house with their sound systems and all of those things. And this is the perfect way to really in an attainable kind of way to be able to go out and make your home an even better place, right, especially if there is pressures in other areas and as people maybe reduce travel and those kind of things after the swing back then investing in Sonos to make your house a little better is a pretty attainable thing given the price points that we have.
Tom Forte: Great. Thanks Patrick. Thanks Eddie.
Patrick Spence: Thanks Tom.
