Ramesh Srinivasan: Correct. Yes, Nehal. Just to reiterate that, that deal is not counted in any of our sales numbers as yet. That we will start counting in sales when the individual properties start signing up with us. So that’s not in any of our sales or backlog numbers that we generally report to you. So to come back to your original point, fiscal year 2024, when you compare Q1 to Q3 with fiscal year 2023, Q1 to Q3, this year is ahead. And by the way, fiscal year 2023 was our best fiscal year up to then.
Nehal Chokshi: Great, fantastic. And Dave, thoughts on free cash flow for fiscal year ‘24 now that we’re basically 10 out of 12 months through fiscal year ’24?
Dave Wood: Yes, I mean, no change to expectations in free cash flow, and that being free cash flow, less CapEx over the year should be pretty close to adjusted EBITDA. Certainly, there’s a little bit more headwinds with timing of billing this year. So most of the free cash flow, typically, we get some pretty favorable working capital adjustments in Q3. And it wasn’t the case this year, but no concern there, it was just timing of billing. We billed things earlier in the year, and we expect to collect on those next quarter. So no change to free cash flow. I mean, over a period of time, free cash flow less CapEx is, it’ll remain pretty…
Ramesh Srinivasan: Adjusted EBITDA less CapEx.
Dave Wood: Yes, adjusted EBITDA less CapEx will be free cash flow.
Nehal Chokshi: Yes. So, just a bit of guidance is around, I think, like $36 million, $37 million. CapEx is trending around $9 million. And so, talking about $27 million free cash flow for fiscal year ’24?
Dave Wood: Yes, that’s right. And most of that will come just from working capital specifically related to accounts receivable.
Nehal Chokshi: Okay. And, you know, I mean, for fiscal year ‘21, fiscal year ‘22, fiscal year ‘23, $27 million of free cash flow each of those years. Yet your adjusted BITDA, you know, is going to have increased about $10 million over that three-year period. And so your working capital requirements are increasing essentially then?
Dave Wood: Well, this year there was a lot more CapEx related to our office moves. We talked about our office moves. We moved offices in our Chennai office, Alpharetta, and Vegas. So it’s kind of the — there was just a lot more CapEx this year related to office moves than there has been in the past. And obviously, you know, we’ll be in these offices for a while. So the CapEx just starting normalizing back down next year.
Nehal Chokshi: Got it, great. And then look, your cash balance continues to accrete really nicely. You’re doing a small level of share repurchases, but I mean, it’s nowhere close to the rate of free cash flow generation. And you’ve proven to have a very prudent M&A task that you did a nice acquisition three years ago, but I mean, it’s nowhere close to the three years of free cash flow that you generated since those last three years there? Why not go ahead and accelerate the rate of buybacks here?
Ramesh Srinivasan: So, Nehal, we are comfortable with our cash balance now, and it is not high enough to do anything significant, Nehal. And we have acquisition opportunities do come to us now and then, but we tend to be very conservative and we’re very careful with what we look at. And organic growth is good for us, so we are not going to use inorganic growth as a crutch. But there are opportunities that now and then can come to us. So we are comfortable with our current cash balance, but as cash flow generation continues to accelerate, all options are open in front of us, right? We will be prudent, we will do the right thing for shareholders, and at the moment, we are at the early stages of accelerating our cash generation. At the current level of cash balance, we are comfortable with. In case there is a rainy day, or in case a good tuck-in acquisition kind of thing comes our way, we are well positioned to take advantage of it.
Nehal Chokshi: Okay, great, Thanks for taking my questions.
Ramesh Srinivasan: Thank you, Nehal.
Operator: And thank you. And I am showing no further questions. I would not like to turn the call back over to Ramesh for closing remarks.
Ramesh Srinivasan: Thank you, Justin. Thank you for all your interest and support. Best wishes to all of you for a very happy, cheerful, healthy, and successful 2024. Our next earnings call will be in about four months from now, around the middle to end of May, when we will be reporting Q4 and full fiscal year 2024 results. Thank you.
Operator: This concluded today’s conference call. Thank you for participating. You may now disconnect.
