Scott Davis: That makes sense. You guys, I don’t think I ever – I’m not sure. I haven’t asked this question. I don’t think you’ve talked about it or maybe you have, and I just didn’t remember, but how are you integrating the R&D efforts between Evoqua and Xylem? How are you kind of integrating and eliminating duplication if there was any? I would assume there’d be some maybe like in things like PFAS and things like that. And then how are you prioritizing projects with – assuming there is some level of integration, but I’ll just let you guys comment on that. Thanks.
Matthew Pine: That’s a great question. We haven’t talked a lot about the R&D synergies, but for sure they are there. Let me first start out by Snehal Desai leading that team. And I’m actually here in DC today with his leadership team. So he comes over from the legacy of Evoqua business. And yes, there is some overlap, especially when you think about the work that’s being done in PFAS, both obviously the capture technologies there about the destruction and the sensing is really where the innovations required. And obviously one plus one can equal three there. We were both working on that to get – separately. But now together, we think we can get there more efficiently and in a more expedited fashion. But in general, yes, there were different solutions that we were working on separately, that as we come together we can get leverage from that combined spend and really that effort.
Patrick Decker: And I think Scott, I would just add that part of our innovation effort, because R&D is only one part of innovation, was through the partnerships that we have through academia, venture capital startups coming to us, and that’s where I think the scale and platform of Xylem and our relationships will benefit what the legacy Evoqua business was looking to capture, around things like PFAS, but other treatment solutions facing our customers.
Scott Davis: It makes sense. Best of luck, everybody. Take care. Congrats on the quarter.
Matthew Pine: Thank you.
Patrick Decker: Thanks Scott.
Operator: And we’ll take our next question from Nathan Jones with Stifel.
Nathan Jones : Good morning, everyone.
Patrick Decker: Hey, good morning, Nate.
Nathan Jones : I’ll add my congratulations to Patrick and Sandy and congratulations to Bill and Matthew.
Patrick Decker: Thank you.
Bill Grogan: Thanks Nathan.
Nathan Jones : Maybe just emerging markets outside of China. I mean, you’ve talked about some of the issues that China saw in the quarter and not particular to your business, I don’t think, but maybe you could talk about the emerging market performance outside of China.
Matthew Pine: Yeah, I think ex-China, emerging markets has been pretty resilient for us across all different end markets, Nate. I think with the exception would probably be a little bit of weakness in the Middle East and our applied water business. But in general, if you look at the other businesses, they’ve been really resilient outside of China. And it’s helped kind of buoy the – a little bit of the tough push to the right that we’ve seen in China. That’s across all different regions; Africa, Northern Asia, Southeast Asia, India and Australia, New Zealand.
Nathan Jones : I think for the follow-up, I’ll ask about the Idrica partnership, Xylem’s new adoption. You guys had some pretty broad presentations at ACE and at WEFTEC this year. So maybe you can talk about customer reception to those kinds of things and customer uptake for those kinds of things.
Matthew Pine: Yeah, no, it’s been fabulous. Actually, it’s exceeded our expectations. We’ve engaged over 200 customers globally, and it’s – the thing I’m excited about, it’s been really balanced across the globe, both the U.S., Europe, and emerging markets. We’ve got a tremendous pipeline built. We’re working now on executing from orders to sales and deployment. I did – if you remember, I highlighted – I’m going to highlight a couple of examples. One was in the U.S. in a southeastern city, a large city, we’re able to cut what I’ll say, land and expand. We took the platform, the digital platform and the utility to aggregate all their applications and then making it easy for them. Then we bolted on two of our own applications, which is recurring revenue.
And then from there we picked up a $40 million AMI deal. So it’s kind of land and expand, but it’s also pulling through our products and solutions. On the heels of that, we just also picked up in Europe from a large European utility, $20 million of treatment in metrology in southern Europe, the same situation. They have the platform implemented and we’re able to leverage our relationship and pull through treatment and AMI solution. So I’ve talked a lot about the platform being the consolidator of utilities information. We believe that’s true, but the pull through we’re getting and the relationships we’re building allows us to bundle our offerings, and that’s really exciting.
Patrick Decker: And Nate, I – Matthew, he led the effort on cultivating the Idrica opportunity over a number of years, and obviously he’s been involved in cultivating the Evoqua opportunity over a few years. What I would just offer up here is, this has always been as we’ve said, about helping our customers turn the lights on, on their infrastructure to understand, have a better feel for what’s going on in infrastructure, so that when they spend the next dollar of CapEx or OpEx, where best to spend it. And I think the, the few opportunities that Matthew mentioned already, where it’s the pull through, that is as much the opportunity as the initial services sell to the customer.
