Elena Gomez: Yes. At the highest level forward flow, the model is such that we don’t take credit risk so the margin profile is healthy. And just kind of zooming out when you think about the capital program, we’re really trying to optimize or maximize our risk-adjusted returns. So as we scale, we’re going to build more partners, and in this case, workflow offers us a really healthy margin profile and still allows us to scale the business as well. So hopefully, that answers your question.
Matthew Coad: Yes, that’s helpful. And then just for my follow-up. Elena, sorry if this is you repeating yourself, but curious if you could provide an update, of the $100 million of annualized cost savings from the risk, how much of that did we see in 1Q?
Elena Gomez: In 1Q, did I say — I don’t think we’ve given the quarterly guidance, to be honest. But I will tell you, because of the fact that we had — I talked about on the script some onetime benefits. We had a little bit higher savings than we anticipated, roughly around $10 million of incremental savings from the $100 million. And just keep in mind, 1/3 of it is related to stock-based comp.
Operator: Your next question is from the line of Dominic Ball with Redburn Atlantic.
Dominic Ball: Great job on taking market share as always. So it seems like in the SMB, the breadth and depth of products offered by Toast is clearly market-leading. My question is for larger merchants, be that upper mid-market or enterprise, are there any product gaps that you would like to fill? I asked this because the recent restaurant management suite put release, the benchmarking tool was really interesting. So should we expect more product releases in the future specifically geared to larger merchants?
Aman Narang: Dominic, thanks for the question. That is the plan gradually as we continue to invest across the whole TAM, including enterprise. The goal of the restaurant management suite was to provide a capability where we can start to drop in more and more of the capabilities into the suite. And so whether it’s our above-store management tools, whether it’s our extensibility and our APIs, food security and compliance, config management, there’s a whole host of capabilities that we’re investing in to make our product a better fit upmarket, including, by the way, drive-through capabilities as well over time. And so this is the plan in the long term. And the restaurant management suite allows us to package all of it up into a suite that can be used upmarket.
Dominic Ball: That’s super interesting. And just one more, if that’s okay. For international growth, how should we think about the product pipeline, the product parity with the U.S. and then the subsequent OpEx attached to that? So what I mean is, because in the U.S., you sort of build these products from scratch and now that isn’t the case when you go international, is there a lower cost of growth or because there’s different markets that are actually a higher initial cost of growth?
Aman Narang: Yes. I think, look, maybe I’ll just say that we — if you looked this quarter, we announced the online ordering, integrated online ordering, which is a big feature request from our customers internationally, it’s been really well received. And there’s a road map to continue to invest and expand the product both from a guest experience standpoint and in restaurant operations perspective to support our international customers. A lot of that is driven by our customer base. I think the incremental investment to go — to build out the product, certainly not the same as building the product for the U.S. market, given we’re building on top of what we’ve built here over the past decade. And also, I think one more thing I’ll call out is we’ve built a framework here where whether it’s language or currency or location-specific requirements, payments, for example, is one, the capabilities reusable across new market.
So as we enter the next scale of markets over time, it should actually allow us to go even faster.
Operator: We will now take our last question from the line of Sheriq Sumar with Evercore ISI.
Sheriq Sumar: I just wanted to ask about the cadence around the SaaS ARPU for this year. Like is there any kind of fluctuation that we could expect? And probably — I mean, I know it’s kind of a bit too early but thinking beyond 2024, I mean, just wanted to get a sense on the upsell strategy that could we expect to see any kind of potential improvement in the SaaS ARPU growth trend from here?
Elena Gomez: Yes, Sheriq, I’ll take that. So in the near term, we’ve said mid-single digits on an ARR basis, and that’s still — we feel confident in delivering on that in the near term. Zooming out, when you think about our opportunity long term, there’s really a few things we think about. One is growing our attach, right? And that’s through optimizing the breadth of products we have and working on product market fit, our upsell team, pricing and packaging. And then there’s innovation that’s — we’re continuing to invest in our R&D team to drive future innovation. And then, of course, as we’ve talked about, we will implement an ongoing cadence of small steady pricing changes, over time, both on the SaaS side but also even on the fintech side, even though I know you’re asking about SaaS ARPU. So we have an opportunity over time to grow our ARPU. But in the near term, mid-single digits is the right proxy on an ARR basis.
Michael Senno: Operator, I think that ramps up our call for today.
Operator: This concludes today’s conference call. You may now disconnect.
