Ladies and gentlemen, greetings and welcome to the CarGurus’ Fourth Quarter 2018 Earnings Conference Call. At this time, all participants are in a listen-only mode. A brief question-and-answer session will follow the formal presentation. [Operator Instructions] As a reminder, this program is being recorded. It is now my pleasure to introduce your host, Rodney Nelson, Head of Investor Relations. Thank you. You may begin.

Thank you, operator. Good afternoon, and welcome to CarGurus’ fourth quarter 2018 earnings call. We’ll be discussing the results announced in our press release issued today after the market close and posted on our Investor Relations website. With me on the call today is Langley Steinert, CarGurus’ Founder and Chief Executive Officer, Jason Trevisan, Chief Financial Officer; and Sam Zales, President and Chief Operating Officer. During the call, we will make statements related to our business that may be considered forward-looking, including statements concerning our financial guidance for the first quarter and full-year 2019; management’s expectations for our future financial and operational performance; our business and growth strategy and our plans to execute on our growth strategy, including our ability to expand our global audience; our ability to realize benefits from our acquisition of PistonHeads and successfully implement related integration strategies; the impact from our adoption of ASC 606; our brand awareness efforts; our investments in and ability to drive adoption of new and existing products and their benefits; the value proposition of our products, including the ability of new products to drive AARSD growth; the growth levers we expect to drive our business; our ability to maintain existing and acquire new customers; our expansion into international markets and our international growth strategy; the impact of changes in leadership; our expected expenses, our ability to successfully grow our product and engineering organization; and other statements regarding our plans, prospects and expectations. Forward-looking statements may include words and phrases such as we expect, we believe, we intend, we anticipate, we plan, may, likely, upcoming and similar terms. These statements reflect our views only as of today and should not be considered our views as of any subsequent date. We undertake no obligation to update or revise these forward-looking statements, except as required by law. Forward-looking statements are not promises or guarantees of future performance and are subject to a variety of risks and uncertainties that could cause the actual results to differ materially from our expectations. For a discussion of material risks and other important factors that could affect our actual results, please refer to those contained under the heading Risk Factors in our Annual Report on Form 10-K filed after today’s market close as may be updated by our other SEC filings. Further, during the course of today’s call, we will refer to certain non-GAAP financial measures. A reconciliation of GAAP to non-GAAP measures is included in our press release issued after market close today. The press release and our SEC filings can be found in the Investor Relations section of our website at investors.cargurus.com and the SEC’s website at sec.gov. Finally, I’m happy to announce that CarGurus will be hosting its first-ever Investor Day on June 11, 2019 in Boston. We will be sharing more details surrounding the event closer to June, but space will be limited. If you have interest in attending, please contact me directly or email investors@cargurus.com. With that, I’ll turn it over to Langley.

Thanks, Rodney, and thanks to everyone for joining us today. I’m pleased to share, we had a strong fourth quarter that was marked by several key developments. In our U.S. business, we generated robust audience growth, launched audience retargeting, our latest digital marketing product and capped off a successful year of brand building. In our International segment, our unique visitors grew more than 100% year-over-year in the fourth quarter. For the full-year, we were the fastest-growing listing site in both Canada and the UK, as measured by Comscore, and we delivered 80% segment revenue growth. On a consolidated basis, we exceeded our revenue operating profit and earnings per share guidance for the fourth quarter and fiscal year. We closed 2018 with another quarter of strong U.S. audience growth. Our site averaged 33 million unique monthly visitors in the fourth quarter, up 29% year-over-year. Further, we averaged more than 34 million unique monthly visitors over the course of 2018, an increase of 40% compared to 2017. Our U.S. audience averaged 89 million unique monthly sessions in the fourth quarter, up 29% year-over-year and we averaged 92 million unique monthly sessions for the full-year, up 42% from 2017. And during 2018, we recognized that building the CarGurus brand would be an important initiative for raising awareness among consumers and growing our audience, an effort that we believe will help ensure the long-term durability of our business. We are working tirelessly to build the world’s most trusted and transparent automotive marketplace, and we are eager to communicate that message to car shoppers, so they recognize the unique benefits of our consumer-centric platform. In the fourth quarter, we launched the next iteration of our detective TV advertising campaign in the U.S., with ads that highlighted these benefits, including that we give every car a…

Thanks, Langley. I’ll provide a detailed overview of our fourth quarter performance, followed by our guidance for the first quarter and full-year 2019. I will elaborate on the impact of ASC 606 on individual line items in our 2018 results, as well as our guidance. Additionally, our 10-K includes a pro forma reconciliation of our full-year 2018 financial statements that reflects our transition from ASC 605 to 606. Please note that all 2017 financial metrics I reference are reflective of the ASC 605. On future calls, we will only discuss our financial results on an ASC 606 basis. Total fourth quarter revenue was $126.1 million, up 39% year-over-year and roughly $4 million ahead of the high-end of our guidance range. For the full-year, our revenue rose 43% year-over-year to $454.1 million, which includes only a minor $126,000 benefit from the adoption of 606. Our marketplace subscription revenue drove the outperformance in the quarter, as total marketplace subscription revenue grew 40% year-over-year to $113 million. Advertising and other revenue grew 34% versus the year ago period to $13.1 million. As I’ve often stated, we expect advertising and other revenue to be less predictable than our subscription revenue, as OEMs and other auto partners can vary campaign timing and promotional activity. Looking at our performance by geography. The U.S. continues to serve as our principal revenue driver, representing 96% of revenue for the full-year 2018. In the fourth quarter, U.S. revenue rose 38% year-over-year to $121.1 million. Our International segment revenue grew 63% versus the year ago quarter to $5 million. As a reminder, we’re prioritizing inventory and audience building over commercialization at this stage in our newest international markets that we are encouraged by the progress we’re making monetizing our longer-tenured international markets. Turning to our paying dealer count. We surpassed…

Thank you. Ladies and gentlemen, we will now be conducting a Q&A session. [Operator Instructions] Our first question comes from the line of Tom White with D.A. Davidson. You’re now live.

Great. Thanks for taking my questions. A couple on AARSD, if I can. So you talked again a little bit about new products being more important driver of AARSD this year. Can you give us maybe a rough sense of kind of the average monthly spend levels for dealers in these products or general pricing? And maybe even some sense of what kind of attach rate for some of these is reflected in the outlook? And then as a follow-up, I think the 23% growth in connections, obviously, traffic growth and audience growth is a big driver of that. But curious if you guys feel like there’s any sort of meaningful opportunity to boost kind of on-site conversion as a way to kind of squeeze more connections out of the audience growth that you get this year?

Sure. Hey, Tom, it’s Sam Zales here. Thanks for the question. I’ll take the first one on new products and we’ll turn it over to Langley on consumer. You asked about rough AOS or the price points for products like this, we’ve always talked about sort of a dealer thinking about $1,000 worth of monthly spend on a listings product. When you add the display product, the first product that was out the door is our second attach rate product, it’s about $300 a month and spend there for that branding opportunity around the dealers vehicle detail page. A search engine marketing plus spend and we think about that as a management fee to the spend that the dealer is spending on search engine marketing overall our fee typically about $1,000 a month on that product. And then the newest audience retargeting products surprising us that with our large audience and the ability retarget, we’re earning again another $800 or so a month in spend on that subscription product. So you see an average dealer spend growing dramatically the opportunity if you can attach that across a broad segment of your dealers, it’s a big amount of spend. And again, we’re looking at that large multibillion dollar spend in digital marketing that we’re seeking and the new products are beginning to create great success out in the market to achieve that. From an attach rate perspective, I think, we mentioned we’ve gone from 19% to 26% year-over-year, obviously, the newest products SEM Plus and audience retargeting are newer. So those create a much smaller impact on that increase in attach rate. Really most of it is from the products have been out there for the longer period of time and that would be the first display product we offer. I’ll turn to Jason.

Just one thing to add to that, Tom, is that these attached products that we have, they often tend to skew toward larger more sophisticated dealers, which is another way of saying oftentimes franchise dealers more often in MD [ph]. And so there are two implications to that. One is that, each of these products is not relevant or germane to every dealer that we serve. And the second is that the dealer who may be paying us $1,000 a month for a management fee for SEM Plus is typically a dealer that’s paying us more than $1,000 a month in listing. So, we don’t want to give the impression that we can take every average dealer of $,1000 and double up them with SEM, because that’s – that would be overstating it.

Hey, Tom, it’s Langley. So the second question you had was around traffic conversion. We [indiscernible] test our our site constantly and probably on a daily basis with every new release of the site. I would say, if you think about our traffic sources as being, well, I guess, three, organic, brand and algorithmic traffic, there is quite a bit of work that we’ve been doing, specifically in algorithmic traffic acquisition to cut the data different ways to try to generate even more efficiency through that spend. And that’s been a big focus of ours last – this last year and this year probably even more going forward. So that’s certainly one of our focus is, I assure you

Great. Thanks so much for the color and Sam congrats on the expansion of the role.

Thank you, Tom.

Thank you. Our next question comes from the line of Ralph Schackart from William Blair. You’re now live.

Good afternoon. Thanks for taking the question. Just on the international front, traffic accelerated pretty strong in the quarter. I think you talked about most of it from the UK platform. Just curious if that was from the acquisition, or if you’re just seeing broader acceleration across UK in general? And then you talked about expanding the brand building internationally in 2019, and then also I think you talked about talking about 2019 since second-half for reacceleration. Is that from the brand building internationally, or is that combination of some other factors as well? Thank you.

Ralph. Hi, Sam Zales again. Thanks for the question. There is no PistonHeads impact to those results on traffic growth internationally, that’s all organic. And so you can think about that as a bunch of markets there. But obviously, the biggest ones are the ones we’ve been in longest, which is the UK and Canada. The brand building impact in 2019 is predicated on great success of our U.S. market. We’ve seen terrific results from not only the growth of awareness of our brand and both aided and unaided awareness and also the traffic that it’s driving for our business very efficiently in the U.S. We’re modeling that same success then to launch Canada and the UK. And our expectation is that, we’ll continue to drive traffic growth and do it efficiently for us, which is our premise we’re using to replicate in those international markets.

Great. Thanks, Sam.

Thank you. Our next question comes from the line of Heath Terry from Goldman Sachs. You’re now live.

Hi, thanks. This is Daniel Powell on for Heath. One question and a follow-up. And I know this is probably a bit muddied by the 606 transition, but it looks like you saw pretty meaningful leverage on marketing spend, while you also saw a bit of a deceleration in your traffic growth in the U.S. Just curious if you guys saw an opportunity to potentially spend more and see faster traffic growth in the fourth quarter, as you go into 2019, where it sounds like connection volume is still going to be a meaningful driver of AARSD if there’s any additional color around traffic growth in 4Q? And I have a follow-up.

Hey, Daniel, it’s Jason. No. I – the – so yes, we saw – yes, sales and marketing is muddied by 606, but even in a 605 steady state environment, we saw sales and marketing leverage and we broke that out in the script. So hopefully, you can see that apples-to-apples in both scenarios. The reason that Q4 has traffic deceleration is, because – well, it’s always the slowest quarter from a car purchasing standpoint, but that was the same in 2017 as it was in 2018. But instead, I would say that we’ve gotten – every year, we get a little bit smarter on where to spend our marketing dollars from a – on a seasonable basis – seasonal basis. And that’s because we look at efficiency of customer acquisition and where it’s going to have the biggest impact for them to purchase cars in their car shopping life cycle. So we had also just started brand spend second-half of last year and we were experimenting with some bigger dollars that were less efficient than we’ve gotten this year. And so it was not a conscious decision to try and grab leverage, it was instead a decision to try and make the most out of our marketing dollars over the course of the year.

Got it. Thanks. And then just curious if you guys can give any details around your expectations for revenue contribution from PistonHeads over the course of the year. I believe you quoted the headwinds on op income, but just curious if there’s any color around revenue? Thanks.

Sure. Jason again, yes. We said that there would be about a $2 million headwind to operating margin. And while we’re not giving exact detail, you should think of PistonHeads as a mid single-digit $1 million revenue business. It’s one that was part of a much bigger media company and was one of many titles that they had and was not receiving a ton of investment. And we think there’s a lot of potential there, especially with the skill set that we bring. And so we see ample opportunity for growth, but it will require some investment. They also have, I would just mention and said this in some of the comments. But they sort of have an outsized audience and an outsized brand reputation among consumers and dealers that we think sort of overweight vis-à-vis the revenue contribution that they have.

Got it. That’s helpful. Thank you.

Thank you. Our next question comes from the line of Dan Kurnos from The Benchmark Company. You’re now live.

Great, thanks. First question, just on the dealer count, just curious how much of the upside, I think, because you guys obviously talked about that slowing, but still a growth lever still pretty strong in the quarter? How much of that do you guys think came from maybe incremental competitor churn versus other means? And then separately on, I want to go back to some comment you guys made about sort of the balance between product add-on and connection driving AARSD? And I’m just curious how you guys sort of balance the ability to extract more from the dealer budget in a pretty tight environment here understanding that you guys have really high ROI prop, but you guys are still “leaving money on the table” with a lot of your connection negotiations. So asking them to pay $1,000, $1,500 a month more with some of the other products could be a little bit daunting, just love to hear a little bit more color on that? Thanks.

Yes, Dan, Sam Zales, I’ll take the first one. The dealer count, I think, we’ve said is going to slowdown over time that dealer growth will slowdown over time. It’s choppy by quarter. We had a good quarter in the fourth quarter. I’d attribute that to many things. One is, I think, our message that we’re the largest audience, the most engaged audience that we’re filling in both our general marketing in the marketplace and our brand that touches both consumers and dealers continues to convince dealers to move from our free program to our paid program, the return on investment that dealers are getting, the message, I think, is out there in the marketplace that we’re driving a tremendous return on investment for customer acquisition for dealers. I don’t know that I credited to competitor churn. I think a dealer continuously looks at where they’re getting the best return on their marketing dollars. As you know, many still spend on offline channels, and we’re continuing to reap the benefit of converting those dollars to digital and making those successful for customer acquisition. And I do think that when our audience is growing as fast as it is and is as large it is – as it is comparative to the direct competitors in the marketplace. It’s easier for a dealer to say, I will put more of my spend to the CarGurus audience, because it’s driving a bigger return for my customer acquisition dollars.

Yes. and on the second – on the second part of your question, we’ve said a number of times audience and audience growth, connection growth, lead growth is the dominant driver of AARSD expansion still, and we anticipate that to be the case in 2019. New products, which are early, but growing nicely will be a growing contributor to that. As far as how dealers spend their marketing dollars, they have a lot of different marketing executions if they do in a number of different channels that are offline and online. They want to diversify those marketing executions, because some are more lead-oriented, performance-oriented, some are more brand-oriented and awareness. And they also know that consumers when shopping for a car go through a pretty long life cycle. And there are many, sometimes dozens of touch points that a consumer will have in identifying the car and the dealer wants to be there for many of them, not just in listings. And so they’re doing these – this variety of marketing. And we believe that given the audience scale that we have and the insights we derive from that audience, that we’re as well positioned as anybody on a number of these digital executions to serve them well for both performance and brand. So it’s – if – in a lot of cases, we’re not necessarily growing their marketing budget, as they adopt a new product of ours. They may be taking it from offline and maybe coming from radio and newspaper, or it may be coming from other online providers that don’t bring the level of insight that we do.

Got it. Thanks for all the color and congrats, Sam.

Thank you. Our next question comes from the line of Mark Mahaney from RBC Capital Markets. You’re now live.

Okay, great. I think most of my questions – or all questions have been asked. But I want to ask about the audience retargeting product. So any more color on that? And I think that it’s a pretty recent launch, but the way to think about the adoption curve on that versus some of the other products that you’ve rolled out? Thank you.

I mean, I think a lot of it – we talked a little bit about there being kind of sweet and that’s the way we like to try to market is, we go to a dealer and say, listen, you’re already using hopefully our dealer display, hopefully you’ll soon be using our search engine marketing product and retargeting. I mean, I think retargeting is nice, because it opens up quite a bit larger market opportunity, because it’s essentially any website that a consumer will have visited post CarGurus becomes a potential opportunity to market a dealer’s product. I think, as Sam had mentioned, just the sheer size of our dataset represents a pretty unique asset that dealers are increasingly wanting to get in front of. I think, some of the recent moves by Facebook to exit the market retargeting and data analytics has created a real vacuum for dealers. And they’re clamoring for data sets that can segment tightly down to make models, ZIP code and trim. And we have the biggest dataset and probably the deepest understanding of all those different dimensions. So we think it’s a really exciting opportunity. And I think Sam can attest or I think he talked earlier about some of the recent uptick from our dealers has been very well received.

Could I ask the question this way, if we think about an average dealers AARSD versus one, who also adopts the whole suite display SEM and retargeting. What that kind of difference in AARSD could be? And I understand that, that could be a very tiny use case for a substantial period of time. But just hypothetically, what that delta in AARSD could be?

Yes, Mark, it’s Sam Zales, and I’m just going to let Langley comment, what Langley had said. A great descriptor of sort of why this has been successful for us. Langley has always said, if you bring the largest audience and the most down funnel engage shopper, dealers will say if they have to us. I bought your listings product. I’m spending as much as I can. How can I get in front of a broader audience that you have? And that’s why these digital marketing suite products fit into that value proposition so well. I think, I described earlier that the average price point, it’s really hard to work off averages, because you are talking about a base of very large franchise or national dealerships in our base, all the way down to the very small independents. I think, that’s the CarGurus value to consumers. They’re going to have the opportunity to see vehicles across that very broad spectrum, the broadest and largest inventory spectrum in the marketplace. And so averages are really hard to use. But I guess, you’d say, if the dealer, as Jason said before, the more sophisticated, the larger dealer is spending maybe it’s $2,000 to $3,000 a month on the listings package, another $1,000 on SEM. And again, if you could attach every product, we’re not saying we’re going to do that tomorrow, $1,000 on SEM, $1,000 between all the display products, that’s a customer that might be spending – that would be $50,000 a year on that program. Again, that’s a larger dealer that spending more and buying those extra products. The smaller dealer might be spending only $500 a month on the listings package. So I don’t want to get into too much detail. The averages move very quickly when you talk about a different segment of the marketplace, but that gives you some color, I hope that’s helpful.

Thanks, Jason and Sam. Thank you.

Thank you. Our next question comes from the line of Aaron Kessler from Raymond James. You’re now live.

Great. Thanks. A couple of questions. First, if I may provide an update on, I think, the last couple of quarters you talked about enabling dealers for more direct sales, an update there? And second, just how are you thinking of the financing opportunity for consumers longer-term, I think, we talked about that historically as an opportunity as well? Thank you.

Aaron, can you just clarify your question on direct sales?

Yes. Basically, online sales are enabling dealers to basically sell directly on the CarGurus site and then delivering the vehicle?

Sure, happy to talk about delivery, Aaron. It’s Sam, and then we take the consumer finance one separately. The delivery product that we launched fairly recently has had great success, because we saw that some consumers were having a very small set of search results in a local market that might be a remote geographic location. What we’ve done is, we’ve enabled dealers to participate in that delivery program by saying to the consumer, if there are only 20 search results in that market and the dealer is willing to drive 100, 200, 500 miles to deliver that vehicle, we’ll be very upfront with the consumer in stating that this is a delivered vehicle driven to your doorstep. There might be a delivery fee for that product as well and we’ll enable the IMV or Instant Market Value to account for that delivery fee. We must make every dealer abide by our seven-day no questions asked return policies or making it a very consumer-focused offering. And then providing that IMV to the consumers that are looking at the price point of that vehicle in their local market comparative to a dealer that sits with physical inventory right there located next to them. So the consumer is seeing a very clear choice of the dealers in their local market and the vehicle – and what’s available to them, plus delivered vehicles from our other dealers around the country. It’s a win-win for consumers and dealers. It grows our revenue. It’s another product to attach to our dealer base and they’re finding great success in broadening the reach of their vehicles to a broader section of the country. The consumer gets the benefit of very transparent experience, but instead of getting 20 search results, they might have 40 now, including the delivery vehicles. So it’s a win-win, we think for consumers and dealers

And then on the finance. So today you can think about the way in which we’re operating in finance in two areas really. One is with dealers. So we have relationship with Capital One, and that is increasingly integrated between our two companies, where we are trying to provide the consumers shopping for a car think they know which car they want to get an experience online that allows them to be pre-approved for financing through the dealer with Capital One. And it’s important that I emphasize through the dealer, because we want to work with the dealer in this financing. It improves the consumer experience quite a bit. The average time a person spends in a dealership buying a car is over three hours. And so to enable them to take the financing piece largely out of it, they can spend less time in the dealer. They and the dealer can focus on other things other than financing paperwork. We want to over time give consumers the same level of transparency and choice in financing that we give them with cars. And so it’s an important piece for us in providing the most trusted and transparent car shopping experience online. The second piece of financing for us is in peer-to-peer. And there, we are providing direct lending or offering direct lending to buyers of cars through a partner. Today’s, it’s estimated that 50% to 55% of used cars are financed. And so it’s a meaningful piece of a peer-to-peer transaction and it’s a fairly painful piece of a consumer-to-consumer transaction. And so we’re offering that on our site today as well.

Great. Thank you.

Thank you. Our next question comes from the line of Marvin Fong from BTIG. You’re now live.

Hi. Thanks for taking my question. Just one on – so the guidance about relatively flat operating margin. Could you help us think about how that will breakdown between the United States and international? Should we think about international being a larger loss next year given the brand new marketing efforts, or will both geographies be kind of flat on an operating margin basis?

Yes. We’re not giving – hey, Marvin, it’s Jason. We’re not giving segment specific guidance for 2019.

Okay.

But I would – there’s no – there’s – I don’t – there are no major plans that would we think seriously surprise anybody.

Okay. Thank you. And a follow-up, if I may. Just on the advertising business, it seems like you guys are doing well relative to some of your peers. Any commentary on why you believe that’s the case? And for next year, how do you think about navigating some of the OEM cutbacks should we consider that is impacting your – the growth trajectory in that business? Thank you.

Hi, Marvin, it’s Sam Zales. I think we’re always wary of the headwinds or any impacts macro level to the manufacturer industry. I think, we’ve been cautious about that. I think, you see us spending much more of our investment and time on the subscription business, which is a very different business and advertising which can be lumpy. That said, I think, we’re very proud of where we are right now. We’ve not seen the headwinds that others may have with our partnerships in the marketplace, and the advertising business looks to continue to be strong. But we’re always wary that major changes are happening with the manufacturer market and that may cause some pullback at some point down the road. Therefore, we’re going to continue to push our subscription business as hard as we can, and continue to try to weather any headwinds in the advertising arena with the success we’ve had so far.

Okay, great. Thanks guys very much.

Should just add Marvin. I think the – you said what’s the takeaway. The takeaway is, as Langley said it before, the largest audience, the most engaged audience, it’s hard for a manufacturer not to see where we stand in the marketplace. And that’s what’s led to the biggest strength for the advertising results.

Okay.

Thank you. Our next question comes from the line of Naved Khan from SunTrust. You’re now live.

Hi, thanks a lot. I just got a couple. In terms of the SEM Plus adoption, can you give some commentary or color on how many dealers you [indiscernible]? And then on the growth in the international markets, I think if understood it correctly, I think, Jason, you talked about growth sort of accelerating in the back-half of the international markets. What’s – if that is correct, what’s the driver of that acceleration in the back-half?

Naved, I’ll take it. At the beginning – it’s Sam Zales. The SEM Plus results, we don’t breakout at a product level, where each of our product stands today. I think, you should think about the SEM Plus business a little differently than our listings or display business only, because in that regard a dealer has to make an explicit decision to rip out a current provider that they’re working with and maybe making it a little dramatic. It’s – make a choice of working with a new vendor, when they are making the change of an SEM provider, search engine marketing provider. Therefore, those – the flow and the sales cycle is typically longer. When you say to a dealer, you can get into a display product immediately and get in front of our audience. It’s a very quick and rapid acquisition opportunity. The others take a little – this SEM Plus product takes a longer time to convince a dealer that because of our data, because of our technology, because of the ATA prowess we’ve had over the years, we will – we should be the player that they work with. We’re having success doing that, but it’s a slightly different sales cycle, obviously, a different price point, because it’s a bigger investment and we’ve done well with it. But it works very differently than some of those other products that are quicker to attach, because the dealer is just saying, I’ve already got money spent in brand advertising. I’m going to just add this to it. Hope that provide some clarity about how it’s different, though we’re not reporting at a product by product level. Do you have any?

That’s helpful. Thanks.

And then, Naved, just want to confirm – this is Jason. Just want to confirm your question on acceleration international, that’s in reference to 2019 or in 2018.

Correct. I understood it in context of 2019, but correct me, if I’m wrong?

Yep. No, that’s fair. So first thing I would say is, this is barring geopolitical issues that could arise. Brexit is clearly affecting the UK and the UK is one of our two most mature markets in international. But barring that, we expect that our lead – everything starts with leads and connections. And so in order for us to forecast an acceleration, we believe that our leads and connections will grow meaningfully. That is fueled in 2019 by more brands than we had in 2018 certainly, as well as ever-increasing efficiency and algorithmic traffic acquisition. That begets more sellable dealers, because we have more dealers who are receiving a sufficient volume of leads that they would – we would be able to pique their interest. And that leads to us having the confidence to hire more salespeople, when we believe that they’ll be as productive as our model sees fit. A very small piece of it is that we have launched other countries that we’ve told you guys about. And over time, as more of those come online in the monetization stage, that’s going to add layers, albeit very small early on. But given how few countries we’re in, if – it can – a new country or monetizing can have an effect.

Yes. Naved, this is Langley. Just to highlight something that Jason just talked about, if you think about how we progressed in a market, Jason talked about traffic drives dealers to join our platform, because that’s where the consumers are and that drives revenue. I would argue, it might even start a little farther upstream than that, and why we believe we have succeeded in the U.S. and why we believe we will succeed in Canada and the UK, Germany, Italy, Spain, because we have a unique product. I know that sounds like a platitude. But we’re the only platform out there, which will coordinate the search results to show the best deals at the top of the search results. It’s much like how Google does search and how Yahoo!, in our opinion, got it wrong. All our other partners, excuse me, all our competitors, while they may be nibbling around the corners around maybe showing some good deal monikers here and there, they won’t change their search results, because if they change their search results, they blow up their income statement in their entire business model. So, when we think about Canada and UK and some of these other foreign markets we feel certainly it’s going to take time, because we have great respect for our competitors and they’ve build big brands. But we believe strongly that the product that we offer in those markets is unique, and then it will be – it’s going to be extremely difficult, not just technically, but from a business model standpoint for our competitors to react to us, because if they do so, they need to change their entire revenue model, which is essentially a paid inclusion, paid to get to the highest place in the search results. So it really begins…

Thanks. Super helpful. Thanks, guys.

Thank you. Ladies and gentlemen, we have reached the end of our Q&A session. I’d like to turn the floor back over to management for closing.

Hi, it’s Langley. I just want to thank, everyone, for joining the call, and we look forward to speaking with you again soon. And as Rodney talked about, we would urge everyone that wants to join our first investor conference to register and come join us here in Boston and learn more about, not just the financials, but meet some of the management team and learn more about our product directions. So anyway, thanks for everyone and have a good evening.

Thank you. Ladies and gentlemen, this does conclude a teleconference for today. You may now disconnect your lines at this time. Thank you for your participation, and have a wonderful day.