Operator: The next question comes from Andrew Schmidt with Citi Global.
Unidentified Analyst: This is David [ph] for Andrew Schmidt. Can you guys speak in more detail regarding the cross-sell progress, what products you’re seeing the most strength right now?
Bryan Hill: Yes. So we’ve mentioned this a couple of times but we created our client sales team in 2019. And once we created that team, they’re responsible for 2 primary functions. One is cross-sell into the base and second is to renew new clients. When we renew a client at least in 2023, what we’re seeing is 3 to 4 additional products that are being taken upon renewal. So that is a great opportunity to cross-sell into the bases when renewal occurs. But we’re not just dependent upon the renewal cycle. And what we’re seeing from our client sales team is we’re seeing a lot of progress in cross-selling our fraud and security products our money movement products and our client service products. That’s where we’re seeing the most traction from that team.
In 2023, that team has represented 33%, 34% of total sales last year, that was a comparable amount as a percentage of total sales. 2 years ago, it was less than 15% of total sales. So we’re seeing a lot of momentum in progress within that function.
Alex Shootman: What I would just add is we’ve seen some — it’s nice to have the product portfolio that we have because given the dynamics of the market, we’ve seen some shift in what the customers are buying based upon their shifting strategies and tactics. So as Bryan mentioned, right now, for example, anything around fraud management and advanced card capabilities which gives people the ability to provision and issue digital cards. That is — got a lot of interest, whereas if you think about maybe a couple of years ago, some things around financial wellness might have strong interest. So that’s the nice thing about our product portfolio is the customers change their strategies and tactics to manage the big shift in interest rates and fiscal policy that’s occurred with the federal government, we’ve got a product portfolio that allows us to shift and sell them what they need.
Operator: The next question comes from Sam Salvas with Needham & Company.
Sam Salvas: Congrats on the adjusted EBITDA positive this quarter. Could you guys just talk a little bit about how customer conversations have changed from last quarter, if they have at all? And maybe just talk about the broader demand environment a little bit more and how you guys feel as we start heading into 2024 soon?
Alex Shootman: This is Alex. As I mentioned in my prepared remarks, personally, I’ve spent a lot of time with customers and prospects during Q3 because I wanted to understand the same thing that you’re asking. And they’re having to change their business strategies and tactics because of the shift in the interest rate environment and really the need to attract more deposits. And so the conversation has moved to what can we do digitally to attract deposits. What can we do digitally to do things like promote direct deposits? What can we do digitally to market CDs to market, money market accounts? So all of that has shifted. What really hasn’t shifted is the commitment to the digital channel. In most of our customers, it’s the most important channel that they have and they are leveraging it to try to attack some of the things that I just talked about.
So there’s no discussion where people are saying, I’m not going to invest in a digital banking channel. That would be like airlines saying, I’m not going to have pilots or flight attendants or mechanics. It’s just — it’s part of doing business. What’s changed is how can I use digital to work on the business challenges that I have right now.
Sam Salvas: Got it. That’s helpful. And then just a quick follow-up. Good to see the 7 new logos signed this quarter. Could you guys just talk a little bit more about those wins you guys had and maybe any commentary into the size of these companies? Just trying to get a sense for, are you guys starting to try and go after some larger FIs out there? Or is it more just playing in your sweet spot right now?
