John Pence: No, I was thinking about the slide that was on our board presentation from about a week ago. We were looking maybe at not the same time horizon you were Rich, but we were kind of an 18 month view and the shift was almost head-for-head from operations to sales and marketing. So again, you see the overall spend not going down but it’s really that composition of where it’s landing on the P&L. And obviously, if we can take it out of cost to serve and put it into the tip of the spear that’s what we’ve been trying to do. So again, we have got that shift going on as well as, again, as Pat mentioned, lead gen and commissions. And then again, we intend to continue to try to add to that group over the next half a year and into the next year.
Richard Baldry: And you had a lot of new products launching, but you are still holding the R&D — I’d say, first half of this year versus first half last year is also pretty flat. Are you seeing the composition of that changing some leverage points on that, that are new, do you think that that will have to start trending up closer to revenues overtime? Just a little more color there.
John Pence: Yes, I think, actually, it’s probably up, if you were to look at how much has been capitalized versus prior year. So I think in general what you are seeing is the maintenance line is staying pretty steady, it’s actually trending down maybe a little bit, which means that we are still spending more but we are capitalizing because it’s all new and an innovative investment versus just maintaining the , which is kind of how it’s delineated in terms of how we account for it. So I would say, we are investing probably at a healthier rate than prior year, it’s just not showing up in the P&L, it’s getting hung up on the balance sheet.
Pat Goepel: The other thing I’d add to that, John is and Rich is, our partnership development partnership with AWS, where we really have a strong five year agreement and they’ve put some calories and money into our development effort around a modernization effort of our payroll tax filing products, and so they’re investing along with us in that case and the spend is going up. But the nice thing about it’s going up in new products and services and new development, which adds to the capital line.
Richard Baldry: And last for me, when you look at the marketplace side, you’re obviously pretty happy with what’s happening there. Could you maybe break it into two pieces, sort of the successes you’re having with people you’ve had as partners there for a couple quarters? And then maybe more recent activities, how you’re feeling about newer partners being added that’ll be the fuel for the future?
Pat Goepel: I think from the marketplace, a couple things. First of all, our ability to find partners and have partners want to do business with us is high. So really feel good about that. I think, the first partnerships that are live, whether it’s Equifax or H&R Block or Intuit, those are really strong partnerships. What I would tell you, a lot of them are multi-year in nature. So we sent an agreement with 401(k) vendor Vestwell. Clearly, the Zoom partnership is under underway. You’ll see more partnerships being signed. I think all of them have a little bit of a different economics around it. And then a lot of them have different lead times where it might be a quarter, six months or a year as you layer it in. So long term, feel really good about the partnership opportunities.
I feel good about the biz dev team and what they’re putting together from a technology service organization. You know we kind of leg into each partnership in a different way but suffice to say the future’s bright in that area.
