Thanos Moschopoulos: Hi, good morning. With respect to the costs for transitioning customers to payments such as buying other contracts. The hand holding required to get them up and running are those funding pretty well expected or something to call out in that regard?
Asha Bakshani: Hey, Thanos thanks for the question. Those costs are actually trending slightly better than the expectations. What we are finding and again, we it’s only really the North American launch because it’s very, very early days for the others. But we are finding in North America that there is a lot less hand holding that our customers are requiring. Many customers are not requiring onsite installations. We still have some significant cause of Unified Payments in the quarter. And we expect to have some in Q2 as well, but they are lower than the original expectation.
Thanos Moschopoulos: Okay, and then as far as subscription revenue, just given some of the puts and takes you referenced, how should we think about the trajectory. Would you expect growth to be sort of similar to what we saw this quarter to the remainder of the year or any color on that line?
Asha Bakshani: Yes, for the first half of the year we expect a softer subscription revenue growth. We do expect that to improve slightly in the back half of the year, but as we said last quarter, we — fiscal 24 for us is really the year of execution on Unified Payments. And so even for the full year at large, we do expect overall subscription revenue growth to be softer than what we’ve seen in previous years. And once we exit the year, we expect that to improve to historical, more historical level.
Thanos Moschopoulos: That’s fine, thanks.
Operator: Your next question comes from Koji Akito with BofA Securities.
Koji Ikeda: Hey guys, thanks for taking the question. I got a question on GTV here as a percentage of GTV. So in the quarter 22%, that’s great, an increase of three points quarter-over-quarter. And the way I understand it is much of that near-term growth is fueled by payments adoption. But as payments get more and more penetrated within your, your base GTV becomes, it’s just a factor [Ph] GTV as a driver of growth. And that metric grew 6% year-over-year this quarter. So, how do we think about the puts and takes the GTV growth over the next 12 months to 24 months?
Asha Bakshani: Thanks, thanks for the question Koji. So, you’re right, you’re absolutely right. The relationship between GTV growth and GPV growth today for Lightspeed is quite disconnected. Because we’re only 22%, 23% penetrated at the end of the quarter. And as, as we become more and more penetrated, GTV growth will become much more aligned with our gross payments volume growth. What we need to keep in mind with the 6% which was single digit year-over-year growth, not super high, is the fact that 50% of our locations at Lightspeed are outside North America. And so we have, we do have some effects, heads wins that are impacting that number. In addition, there are certain verticals where we’re well penetrated from a GTV perspective like as JP mentioned, and there’s still declining year-over-year.
And so, that is impacting our overall GTV growth. We do find that as we focus more and more upmarket on the over 500K cohort of customers as you know is our main focus that we do expect that Lightspeed GTV growth year-over-year should be better than overall GTV growth in the SMB market.
Koji Ikeda: Got it. Asha thanks for that. And one follow-up if I may here. In your prepared remarks you were mentioning capital and you mentioned that you would be pushing harder but given the macro you’re being conservative on the ramp, but then you will also mention that there is demand for it. So if there is demand, why not push a little bit harder for capital.
Asha Bakshani: Yes you’re absolutely right. Capital is a very promising business for us, but what we have to keep in mind is that it still represents today a low single digit millions in terms of revenue and so when the company is fully focused, our sales teams are fully focused on Unified Payments, there was some distraction in the quarter on capital. And in addition we want to make sure that in today’s macro that we’re not rushing anything. We want to make sure that we ensure that we stick with the very very high rated credit rated customers for eligibility, but you’re absolutely right there’s tons of demand. We’re just we are taking our time intentionally given the macro. Our default rate still remain extremely low, but we definitely should see that pick back up in the back half of the year when Unified Payments is behind us.
Koji Ikeda: Got it. Thanks that makes a lot of sense. Thank you so much.
Operator: Your next question comes from Matt Coad with Autonomous Research.
