And just to give some examples, some of these have to do with how do you deal with order and make sure that your inventory is flowing the right way. As you can see, as we terminate our manufacturing operations, for example, we’d be — we chose to restructure those auctions and the dissolution of materials of inventory, we took a $14 million restructuring charge is just one example and beyond. That actually doesn’t affect this gross margin line. That’s one example of those. Other examples include we continue to have redundant teams that are procuring and arrange for the arrival of materials on site. We think that begin to — as we continue to get deep with our supplier network, those teams can not only be leaner but can process the flow and get the materials to site in a more cost-efficient manner.
I’m giving just a couple of examples of really a dozen that we focus on as a team.
Greg Palm: Yes. That makes sense. Appreciate the color. And just on the overall ramping up of deployment, it’s been impressive, and it’s clear that the outsourcing strategy has, I think, well exceeded expectations relative to maybe a year, year and a half ago. I know you’ve been talking about this adding one to two customers a year. I think you’ve added maybe more like three-plus GreenBox in the last, I don’t know, 12, 14 months or so. Is it time to think that you could be adding more than one to two a year just based on some of the success over the last year? Or are you still trying to be a little bit more conservative there?
Rick Cohen: Well, Greg, our systems and deployment are up over 100% year-on-year. And we are more than comfortable with the number of new customers we’ve added and the fact that we do have now — deployments in flight with seven customers. With the addition of GreenBox, we still feel like the one to two customers per year is the right rate for us in the near term as we continue to move forward. Don’t forget the GreenBox is one customer that eventually we anticipate will be adding many, many customers. And that’s a vehicle for us to do exactly what you’re suggesting, how do we expand the number of customers on board. We think GreenBox is a vehicle by which we can do that far more efficiently. But for right now, direct customers, the right number for us is looking for is one or two per year.
Operator: Our next question comes from the line of Joe Giordano from TD Cowen. Your line is open.
Joe Giordano: Yes, Tom, just a question on like when you give guidance, right? So now you have 100% more project systems and deployment given just the nature of how these are all percentage of completion and add a new layer every quarter, like is guidance inherently like more challenging to give now because you have so many more layers in and you have 35 as opposed to 17 a year ago?
Tom Ernst: I don’t think it’s inherently more difficult. If anything, the fact that we have now 35 systems in deployment generating revenue means that you get a little bit of an averaging in and some of that variability of say, having one project and a surprise either the positive or negative means a little bit less on a percentage basis, right, Joe. But what is the challenge is when you’re growing as fast as we are, and when key milestones can be menu a movement of a day or two at quarter end can be a meaningful amount of revenue. So no, but fundamentally, no, I don’t think that visibility and the variability we have is not decreasing, if anything, it’s marginally improving.
Joe Giordano: Fair enough. And then on GreenBox, Obviously, as you guys went down this road, you kind of — I’m sure you kind of tested the waters with some potential anchor tenants and our customers there. But I’m just curious as what needs to be in place from a structure standpoint, management standpoint, strategy standpoint at GreenBox for you to be able to start kind of producing for them and getting revenue from that store?
Rick Cohen: Yes. So this is Rick. I’ll take that. So when — so there’s a — I would say it’s just a pattern that I go through which is what we went through last year, which was really focused on scaling and availability and bidding suppliers and reliability. So that was last year. I’m spending a lot of time with customers right now, potential customers about GreenBox. And so just getting the right — there’s lots of different potential customers for GreenBox to some very big ones. There will be some smaller ones. There will be some ones that would be surprising to you. And so I’m spending a lot of time traveling. And as we figure out — and we’re also inter beautiful. But we haven’t hired anybody yet, but we’re interviewing to find out what kind of mix we want manage team, SoftBank and I have spent a lot of time together.
We brought in a little bit of consulting work from some different consultants and probably bring in some, so that’s the stage we’re at. And you have to remember, we have some time because we’re pretty well built out for 2024. So what we’re really talking about is picking a couple, which is exactly what we did with Symbotic, bringing a couple of core customers who may have different characteristics than you might see with a typical Symbotic customer, and that’s why we’re doing GreenBox. Sometime in 2024, will we’ll put a spade in the ground and say, okay, this is where we’re going to dig, this is what we’re going to build, and then we’ll build out that network.
