Arvind Ramnani: Hi. Thanks for taking my questions. First question really is kind of relative to sort of like what you’re expecting towards the end of last year towards versus how things are shaping out for the beginning of the year. Are you — did I hear you correctly on the call, you said that kind of things have kind of deteriorated or kind of in line with how you’ve been thinking about things?
Dave Girouard: Hi Arvind, this is Dave. I think things have gone to a large extent, the way we kind of suggested even a year ago, and that was that less prime, lower-income folks were being hit earlier. And then during 2023 really began to improve and reemerge. And there was a belief that people at higher incomes, higher FICOs were going to be affected later. And that’s really what we’ve seen more recently. So, in the grand scheme of things, it’s really gone the way we expected, and I think we communicated our expectations there. And you can see that in the Fed numbers that were released, I think, just last week. So, it is an unusual situation to have default rates of credit cards and auto loans at their highest since the Great Financial Crisis, yet unemployment remains quite low.
So, it’s not a typical scenario that anybody has seen out there. But having said that, our models are doing the right things. They’re tightening and recalibrating constantly. And we’re very hopeful that this will be the year where this will get put behind us. And I think there’s good reason to believe it’s a faster trip to a correction for primary borrowers who are employed, et cetera. And all that to us looks pretty solid.
Arvind Ramnani: Great. And then as you look out for the rest of the year. I mean you said you hope that the year gets behind you. Is it — are you talking about 2024 or 2023?
Sanjay Datta: I’m sure we were referring to 2023. I think we’re up — I think despite the near-term noise, I think we’re all very optimistic about 2024 as a year.
Arvind Ramnani: Okay. Yes. Yes, that’s what I thought. I just wanted to clarify. And then when do you think you’ll be in a better position to kind of reinstate like annual guidance or you’d kind of — you just — you’re not in a position to really talk about that?
Dave Girouard: I think when there’s a lot of things that are outside our hands, the Fed’s move interests and whether inflation is, in fact, tamed or is going to reemerge, et cetera, the sort of precarious situation, we think a lot of American consumers are in financially where they’re still spending more than they probably should, given their income. So, there’s a bunch of things out there that we don’t control and they’re pretty important to our business as it exists today. We’re certainly working towards being less dependent on those. But the reality of today is those matter a lot to us. And so we would really want to be in a more of a steady state place economically, and we’re just not there yet.
Arvind Ramnani: Perfect. Thank you so much.
Dave Girouard: Thanks Arvind.
Operator: And our next question is going to come from James Faucette from Morgan Stanley. Please go ahead.
James Faucette: Hi thanks. I wanted to just touch really quickly on OpEx levels. It sounds like you feel that the environment and the potential quick rebound in more primer type borrowers, could rebound pretty quickly. And so as of now, it doesn’t sound like you’re anticipating any OpEx trimming. I just want to make sure I understand that correctly. And when you talk about getting back to EBITDA breakeven et cetera. Is that something that you’re, as a result of anticipating should happen this year roughly? Or are we thinking more into next year once we’ve had the ability for stabilizing environment to really take hold?
Sanjay Datta: Yes, hey James, it’s Sanjay. Yes, thanks for the question. I think — as I said, I think there’s maybe a couple of factors weighing on our Q1 EBITDA guide. One of them is the seasonality itself, which is just — it’s a headwind to volumes for a quarter or so. One of them is the fact that there is this fair value component to EBITDA, which is noncash, but that in turn is impacted by some of the default trends we’re seeing out there, in particular on the primary side. So, hopefully, those things are transitory. I guess the answer to your broader question is we would absolutely hope to make our way back to EBITDA breakeven this year. It’s an important priority for us. Dave said there are certain things out of our control, but as long as some of these things subside and we can see a clear path to recovering from them, then I think that will provide a clear path back to breakeven.
James Faucette: Got it. Got it. And then in terms of like the — particularly on the primer and how you guys have reacted. I think the comments on the seasonality are clear. But can you give us a sense of how recently you started to make your adjustments on what you’re doing from a primer perspective and the way that it’s impacted. Is that recent here in maybe February? Or did this really start even at the end of last year?
