We won’t optimize for the long run. And we TikTok, Meta, Microsoft to be our partners for decades, not for a quarter. And therefore, we will happily take our business at eventually a lower margin than the current one, provided that is up gross profit dollars. That’s a key point here. Every time we add a new customer in a new geography, Jacobo during the remarks mentioned Nigeria, that’s compounding our value proposition. We are a better business when customers use us in Nigeria. We might have a lower gross profit margin in the short run, but we see that as an opportunity and nothing but that. We’ve spoken about net take rates going down over time. We are open about it, but we believe the name of the game in the business we are in is to continue to gain to TPV and therefore the gross profit there amount will continue to increase.
I want to emphasize this point. We want to continue to serve our customers everywhere. In as many geographies with as many products possible, we will never have a gross profit margin target. We will have a gross profit dollar target.
Tito Labarta: Great, Seba. No, that’s helpful. Thank you for that color. Just a couple of follow-ups, if I may. Just on the €“ can you give color on €“ did you have to do that again in 1Q? Did you use more cash in 1Q for those purposes that you mentioned? And you also, I think used about $15 million to pay back a loan you mentioned. Was that €“ did you want to do that? Did the bank call that at anyway? Just to understand a little bit what happened with that loan position as well. And then just to clarify on the gross profit. I mean, I understand you’re targeting gross profit dollars, but as you grow, I guess, more in Asia and Africa, should we expect initially that there’s some pressure on that margin. And as you scale up in those countries, that’s when you can see some of the operating leverage and the gross margin expansion, just to understand the trajectory of that?
Sebastian Kanovich : Sure. I’ll take the second part, Jacobo, Diego, I’ll let you complement on the cash side. Maria also feel free to complement please. I don’t want to sound like a broken record, but we are not optimizing for the gross profit margin. Obviously, there’s opportunities for us. When we just launched a new geography, we are not fully optimized. We don’t have the full suite of products. We have pay-ins, pay-outs, cross-border local-to-local. We typically also don’t have the width, of partnerships from a banking standpoint that in a more mature stage we would have. So, it could be said that when we launch, we are leaving some money on the table. We are happy to do that. We believe that’s the right thing for our business in the long run, but this is also a function of which geographies are going to grow faster and which customers are going to grow faster.
Keep in mind, it’s also €“ it’s always €“ we’re always powering hundreds of merchants across 40 geographies across many products. That will always result in our margin going up and going down the way you’ve seen it. And that’s why we care so much about this gross profit dollar concept. That’s how we ask our commercial teams to focus that’s what we compensate them on because that’s where we believe the real value is for our company. We need to bring more gross profit dollars. That’s how we are going to build a great business on the long run. Jacobo, Diego feel free to complement on the cash point.
