Michael Praeger: Okay. I’ll take that. Great question. Again, TPV volume for us in the quarter was close to $20 million, up about 8% over the prior year period. And a couple of things maybe just to point out, speaking about overall TPV. Again, that metric for us drives payment revenue in a meaningful way. And it’s also a metric that’s been impacted by some of the caution that we’ve seen exercise by our base of buyer customers across the middle market. I think if I think about the results for this quarter and the volume trends that we’ve seen, we haven’t really seen meaningful departure from what we’ve seen in the past couple of quarters. And it’s hard to predict, but we’re imagining something similar in the quarters to come.
And obviously, hopeful for this temporary kind of macroeconomic condition to lift in ’24. A couple of quick points. When you think about that growth in the third quarter of ’23, you have to keep in mind not just that discretionary volume impact, but also the political dynamic contributed CPV in the prior year where it would not exist in the current year. So there’s a little bit of impact there. Remember also that growth rates last year were impacted by sort of the COVID impact from prior year, so some distortion in those growth rates, together with potentially some impact from inflation. And then finally, we do see potentially lapping the year-ago period sometime in the middle of the fourth quarter when we began to see this moderation start and so we could see some benefit from that, obviously, when we — when our comparables improve.
So hopefully, that gives you a little bit of insight into the TPP volume dynamic.
James Faucette: Yes. That’s helpful. I wanted to ask mechanically on Invoice Accelerator. I think the intention there is to transition the funding mechanism to on versus balance sheet over time? How should we be thinking about the timing of that and sort of the financial impact?
Michael Praeger: Yes. Good question. You’re exactly right. We believe our strategy is to transition Invoice Accelerator to be off balance sheet over time. We believe that in terms of those partners that we’ve already been in conversations with, that we ideally in order to get kind of the best structure and kind of rate for the program, I want to have about a year’s worth of history with the 2.0 offering. So I think as we are at this time next year, we’ll be — have some pretty well developed strategies on moving it off balance sheet. And we’ve incorporated that into our economic model and believe that the yields to AvidXchange will be consistent with what they are now. And certainly, I believe that we’ll be able to lower our cost of capital because we’re up today, we’re really using our equity of our balance sheet to fund the program. So looking forward to getting to that point certainly over the next year or so.
Operator: This concludes our question-and-answer session. I would like to turn the conference back over to Mike Prager for any closing remarks.
Michael Praeger: Thank you. Again, thank you for everyone for joining us to discuss our solid third quarter results and the sustained execution around product innovation, strategic partnerships and differentiated performance. We believe we are the only publicly traded pure-play accounts payable and payment automation investment that’s purpose-built for the middle market, leveraging our 2-sided network of having both buyer and supplier customers. And given our sustained operational and financial performance since our IPO, coupled with our strong balance sheet, we believe we are well positioned to execute towards our goal of being a rural 40-plus company, as outlined in our recent Investor Day this past June.
Operator: The conference has now concluded. Thank you for attending today’s presentation. You may now disconnect.
