And I also noticed that the gross margins were a little lower this quarter. Is there any relationship between those two factors or appreciable difference in like how the margins on some of the more exotic cards compared to your, I guess, I’d say, classic metal cards?
Jon Wilk: Yes. So, let me take – I think I got it. I’m going to try and take those in reverse order. And I’m going to start with the gross margin in general, Reggie, if I could. So, on the gross margin, what we have said is we believe gross margins in our business should be north of 50% and coming in at 53%, certainly in line with our expectations about where gross margins should be in our business, and we think those are strong, especially combined with EBITDA margins in the high-30s, so that just as a baseline for the story of our business. Second, with respect to why it’s down year-over-year, there are two factors that Tim talked about and I would reemphasize. One was we have seen some impacts from inflationary pressures due to things like wages that have had some impact on the gross margin.
And the second does relate to – as we launch new card constructs, it just typically takes a little bit of time to get those up and running at a level of efficiency that we expect to see over time. So, yes, we will see kind of lower margins as those products ramp up that stabilize, we think in the levels that we expect overall in the business. So, yes, when we are launching a bunch of new things, you see some of that impact. And we talked a little bit about it last quarter, and Tim highlighted it a little bit this quarter as well. And we think over time, those sort of normalize out to more stable levels for us. With respect to Robinhood, generally, I am going to comment just broadly how this works. When someone like that is ramping up a program, Reggie, there are a couple of different ways they can do it.
One is with large upfront order and then steady volume to follow or just steady volume as they build, and it’s just really a preference of the buyer and the company themselves. So, I am not going to comment specifically on how they are doing it and how their revenue will grow. But presume that generally, any time you see a program like that, it’s certainly a good thing and we like to see that build over time. And as you and I have talked about, when those programs build, Reggie, over time, you will see kind of three or four different levers. New acquisition, over time, you will see were stolen, you will see natural reissue a few years later. And all of those build to we think that kind of sticky relationship that we want to see with customers over time.
So, excited about the launch and the opportunity.
Reggie Smith: Got it. And if I can ask one more, I have known you long and if I know you have raised guidance after the first quarter, so I am not going to ask you about that. But I guess thinking about where results came in first quarter versus your expectations, any maybe in the pipeline, maybe you could talk a little bit about how both of those are today relative to what you were thinking when we spoke two months ago? Any color there would be helpful. Thank you.
Jon Wilk: Yes. So, Reggie, I appreciate the question. And yes, you are getting – we are getting to know each other better as we move through these. Look, if you look at the guidance range that we issued, we are spot on out of the gates to kind of be right in those ranges. We will always look to do better. But we are right where we wanted to be, right where we expected to be with the business. And I think from looking at it, if a company starts and they need a huge hockey stick to be able to achieve the results, someone sitting in your churn always looks at it skeptically, we are right on where we need to be performing in this business and just very pleased with the start that we are off to, so…
Reggie Smith: When I do the math on just the seasonality, looking at your first quarter, the previous like 3 years, using that kind of range, I kind of get towards the high end of your guidance already just based on what you did in the first quarter. So, that was the impetus for the question. It just seems like you guys are off to which you said, but I wanted to, I guess hear it again. That’s all I have. Thank you.
Jon Wilk: Appreciate it. Thank you, Reggie.
Operator: That concludes today’s question-and-answer session. This will conclude today’s conference call. Thank you for participating. You may now disconnect.
