Greg Palm: Okay. And just from a follow-up question on the pace of deployments in general, obviously, a lot of progress, over the last year or so since the outsourcing strategy ramp up. But kind of as we sit here today, is there any constraints to not maintaining that current pace, but accelerating it further, whether it’s bringing on additional partners, whether it’s continuing to kind of reduce that timeline per the deployment, just trying to get a sense of anything that’s changed internally where you’re not trying to further accelerate deployments from current levels. I just want to make sure we’re all kind of clear on what’s changing, if anything, here.
Richard B. Cohen: So I’ll take this one. So the deployments we’re doing now in this quarter were actually started a year ago. What we know a year later, which is now from where we were a year ago, we can go fast. We can go a lot faster.
Greg Palm: Okay. I’ll leave it there. Thanks.
Operator: Thank you. One moment, please. Our next question comes from the line of Derek Soderberg of Cantor Fitzgerald. Your line is open.
Derek Soderberg: Yes. Hey, everyone. Thanks for taking the questions. Just sort of piggybacking off the last question, just around turning on the live systems, with deployment timelines where they’re at, it sounds like around 20 months or so. I think a year and a half ago, you’re at 13 systems in progress, a year ago, 22. I guess, I’m wondering if you think you can bring maybe those 13 systems to live operation this year, maybe last. Can you share what expectations you have you know, the number of systems you think you can turn on this year?
Carol Hibbard: Yes. So we typically don’t guide on the on the number of systems we’ve got in deployment. But as was pointed out, we had gone quarter-over-quarter for four quarters in a row where we were deploying one system a quarter. We accelerated that to two last quarter and now you saw that accelerate to be deployed three this quarter. I would expect to see continued improve that throughout — continued improvement on that throughout the year. And as you said, that 20 month deployment, but what we also pointed out is that 20 month deployment, that’s for what I’ll call an average system, so there will be variability. Not every system will deploy in 20 months depending on the size of the system. We have some systems that we’re implementing, which will be significantly larger, and those will take additional time to go ahead and deploy.
But overall, the average we’re looking to continue to reduce that time deployment and that does enable, clearly the ramp of how many we deploy in a given quarter.
Derek Soderberg: Got it. And then as my follow-up, just trying to work out some of the math on the recurring revenue. I’m wondering how we should think about the recurring fee, from a percentage standpoint, and is that moving higher as new systems are turning online? And should we really think about recurring revenue to more or less grow at a similar rate, as these live systems come online? Thanks.
Carol Hibbard: Yeah. And so the recurring revenue stream, and I’ll start with software. So you saw our second profitable quarter, 430 that’s up from where we were. So in terms of profitability, we’re seeing progressive, improvement to the software margin. From a recurring revenue perspective, when you look fourth quarter to first quarter, you’re not seeing as big of a ramp. Those three systems that we brought on live hit live in the last month of the quarter. And so you’re really going to see a much steeper ramp on that recurring revenue. It was in a not we had we went from 12 systems in deployment to 15 in deployment, but those last three happened, in December, so we didn’t see the real benefit. So, I think you’re going to continue to see that revenue grow.
But in terms of your question on the attach rate, we still have, I’d say, a third of the 15 systems that we’ve got deployed or really early proof of concept systems where our attach rates were significantly lower. So you’re seeing the impact of that. New customers that we’re signing on, we’re looking to improve that, recurring attach rate as we’ve talked about in the past.
Derek Soderberg: Perfect. Thank you.
Carol Hibbard: Thanks, Derek.
Operator: Thank you. One moment, please. Our next question comes from the line of Rob Mason of Baird. Your line is open.
Rob Mason: Yes. Thank you. Just to circle back to GreenBox a moment, there were some costs, it looked like in the quarter, small costs, just related to the JV formation. I’m just curious how you expect Those in the call on cash to trend, through this year. And if, Rick, you could speak to any major milestones as we work towards their first customer announcements, I guess maybe just structurally internally at GreenBox, major milestones, that still need to happen just in the formation of that entity.
Carol Hibbard: Yes. So Rob, I’ll take the first part of that question that, additional small amount of joint venture fees, that is trailing costs associated with all the work we did last year. So you should not expect to see that continue. And that was a one-off trailing expense from last quarter. So your second part in terms of GreenBox, as we’ve indicated, we expect our first customer, this year, and we’ve got a lot of inbound as Rick addressed, and we’re on the trajectory we had planned for GreenBox. I don’t know if that answers the second part of your question, Bob, or not.
Rob Mason: I mean, is the management in place? Or again, I’m just trying to think is that that any comes to be, you know, what are what are the other, you know, milestones that we’re looking forward to there.
Richard B. Cohen: Yes. So the management is we’re recruiting, we’re interviewing management to put that in place, but there’s also from the outside, they may have different skills than we have, whether it’s at SoftBank or Symbotic. But right now, we have, between the SoftBank talent team and what we’re doing at Symbotic, we can actually sell systems into GreenBox, but we expect to expand the management team over the next period of time fairly quickly to build a bigger sales force at GreenBox and so that’s the process that we’re on.
Rob Mason: Excellent. Thank you.
Operator: Thank you. I’d like to turn the call back over to Jeff Evanson for any closing remarks.
Jeff Evanson: Thank you, Val, and thank you everyone for joining our call tonight. We appreciate your interest in Symbotic. We look forward to seeing many of you at investor conferences or warehouse tours or when we talk next quarter. Have a great night.
Operator: Thank you. Ladies and gentlemen, this does conclude today’s conference. Thank you all for participating. You may now disconnect. Have a great day.
