Debbie Clifford: The overall market conditions, new subs, momentum in the business was similar to last quarter. We talked about leading indicators being consistent with last quarter, growing usage, record bid activity on BuildingConnected ,cautious optimism from our channel partners. Beyond that, I would just add that our regional performance was broadly similar to what we’ve seen for several quarters. direct business, including enterprise and eStore as well as India actually were bright spots for us, but they were offset by some tougher patches like China as well as the softer performance that we talked about in M&A.
Ken Wong: Got it. And then I realize maybe it’s a very small nuance. But I think last quarter, you guys saw a little bit of a dip, and then it recovered in terms of new sub ads. I guess when you’re saying it’s consistent with last quarter, would it be more consistent with that exit or kind of full quarter dynamic where averaged out maybe a little lighter than anticipated.
Debbie Clifford: So remember what we said last quarter was that we saw a slight dip after we stopped selling the multiyear contracts upfronts, but then it recovered as we exited the quarter and as we got into early Q2, and we saw that consistently throughout Q2.
Ken Wong: Okay. Perfect. Thank you, Debbie.
Operator: Thank you. Please standby. Our next question comes from the line of Nay Soe Naing, Berenberg.
Nay Soe Naing: Hi. Thank you for squeezing me in. Just got a quick question from me. Coming back to the early was better than expected or earlier than expected EBA renewals I was wondering if we were to exclude that impact in the quarter, the performance in AEC, would we have seen an inflection in terms of the growth levels because what we’ve seen in the past couple of quarters is the gradual decline in growth rates. So I was wondering if we didn’t have this early renewals and EPAs would be an easy segment would have seen a further deceleration in growth rates? Or would we see a bit of an uptick compared to Q1? Thank you.
Debbie Clifford: So the early billings that we talked about for EBAs are what drove the revenue beat versus our guide. But when you think about that beat on a dollar basis in comparison to the totality of our AEC business, the AEC business is vastly larger. So it’s not a big driver of the overall trend that we’re seeing in AEC, but it was the driver of EBA.
Nay Soe Naing: Thank you.
Operator: Thank you. Our next question comes from the line of Patrick Baumann of JPMorgan. Please go ahead, Patrick.
Patrick Baumann: Thank you. This is Pat on for Steve. So just a couple probably for Debbie. You touched on sales in terms of the moving parts of the guide raise there. I guess in terms of the free cash flow midpoint, what was – I know it was only – it was a small number, but what was the driver of the raise there? And then on the EPS, the adjusted EPS guidance rate – raise, there’s like $25 million of other income. Is that simply the benefit from the interest on cash that you mentioned in the preamble?
Debbie Clifford: Yes. So starting with cash, it’s due to the performance that we saw in Q2. So I talked a little bit earlier in this Q&A session about the EBA billings that we saw in Q2 as well as the favorable in core linearity. So those were drivers of the difference that you saw in our cash flow guidance. And then in terms of EPS, the other income is due to higher interest income from our cash balances.
Patrick Baumann: Good. Does that flow through the cash flow?
Debbie Clifford: In part, well, yes, yes.
Patrick Baumann: Okay. And then sorry, one more on cash flow for my second question. Is the – do you think is the third quarter going to be negative or positive on free cash flow. You said I think, significantly weighted to the fourth quarter in the second half, which I think is similar to your prior commentary from last quarter. But I think you also thought at that time that maybe second quarter and third quarter could be negative. Is your view that free cash flow will be negative in the third quarter given the impact of this cash item that was pushed from the first half to the third quarter?
Debbie Clifford: We’re not going to guide on a quarterly basis for free cash flow, but I’ll try to be helpful. I just want to reiterate some of the comments. So remember that second half free cash flow is going to be significantly weighted into the fourth quarter. And the biggest driver of that is the extension of our federal tax payments that had a positive impact on the first half but are going to negatively impact Q3. So think about that as you put your model together.
Patrick Baumann: Okay. Thanks so much. Best of luck.
Operator: Thank you. That is all the time we have for Q&A today. I would now like to turn the conference back to Simon Mays-Smith for closing remarks. Sir?
Simon Mays-Smith: Thanks, and thank you, everyone, for joining today. We look forward to updating you on our progress in November on our Q3 earnings call. I look forward to speaking to you then. Thank you so much.
Operator: This concludes today’s conference call. Thank you for participating. You may now disconnect.
