John Rettig: Yes, I would just reiterate that we’re starting to have more opportunities and create proof points around some of our ad valorem products being integrated into our white label solutions with various financial institution partners that I think will take time to evolve. It’s not going to be an instantaneous step-up in monetization. But I think we’ve proven through our direct business the ability to create value for buyers and suppliers that will play out in the financial institution channel as well. We’re 4% to 5% of revenue is what the financial institution contributes today, and we’re expecting over the longer term, that to be a much higher percentage of our overall business. So, we’re €“ that’s why we keep investing in the channel, and we understand that it’s a long-term investment.
We have seen a significant increase in the number of financial institution customers as a percentage of the total net new customers that we’re seeing; we saw slight declines in both segments, Bill direct and the FI channel in the last quarter. And we think that’s a little bit of a function of, as Rene mentioned, businesses just going on pause a little bit, being on standby being a little bit slower to make some of the decisions around transforming their operations. So we’re kind of expecting that to continue in the near term. Over the next couple of quarters, we’re thinking that our net new ads will be similar to what we experienced in the December quarter.
William Nance: Got it. Appreciate to taking my questions.
John Rettig: Thank you.
Operator: Thank you. Our next question comes from the line of Scott Berg with Needham & Company. Your line is now open.
Joshua Reilly: Hey guys, this is Josh on for Scott. Thanks for taking my question. Can we get some more color on trends you were seeing here in the month of January relative to the December quarter? And how does recent activity influenced the updated guidance for the year? Thank you.
John Rettig: Thanks, Josh. So we €“ as I mentioned earlier, I think took all data points into consideration as we updated our estimates for the second half of the year. And most notably, those include the lower TPV growth across BILL and Divvy as well as slightly lower monetization expansion. And we think that, that fully reflects the softer environment that we’re facing with SMBs adjusting the spend and reacting to the macro environment. So there’s nothing incremental or new to report on the month of January other than it’s all a part of what we considered in updating our numbers, we think, to appropriately adjust for some of the macro conditions.
Operator: Thank you. Our next question comes from the line of Tien-Tsin Huang with JPMorgan Chase. Your line is now open.
Tien-Tsin Huang: Hi, thank you so much. Just a clarification and a question for you, John. Just does the slower spend outlook changed in any way your risk appetite for growing, Divvy, I’m not sure if you commented on that €“ and then just on the share repurchase on the execution of that, is that opportunistic or systematic? What are you putting in place against that? Just want to make sure I cut that. Thank you.
