Stephen Kramer: Yes. I think the only thing I would add because I can be fully agree with Elizabeth. I would say that over the last several years, we have actually been investing in a more seamless experience for the end user through better technology and interfaces. We certainly have been investing in more personalized outreach and marketing efforts. And so again, I think those efforts are starting to bear fruit. So ultimately, we continue to have these ongoing opportunities to continue to refine that experience and continue to refine those marketing opportunities and outreach opportunities, but believe that many of the investments are starting to pay fruit and you’re starting to see the last couple of years really show some really nice growth on top of what Elizabeth shared in terms of the actual use case growth and demand for the service.
Josh Chan: Thank you for the color there. That’s really helpful. On the full service side, given that you seem to be expecting fairly healthy enrollment trends into next year, is there an opportunity to open more centers next year than perhaps usual given market demand or to take advantage of any disruptions that you see in the market and could you just talk about potential center opening cadence into next year?
Stephen Kramer: Yeah, sure. So look, I’ll start by saying that certainly going into next year, our number one priority continues to be enrolling our existing centers. That has been our priority. It will continue to be our priority. It is our best opportunity in the near term to continue to grow the impact that we have and to grow the economics that we enjoy. We are calling for centered growth of about, call it, 20 to 30 centers next year. And our expectation is that, that will be a combination of new employer centers that we’ll be opening on back of our clients as well as new lease models and acquisition opportunities. As we have shared in the past, when ARPA ended September 30, we do see that there is likely to be a knock-on effect in terms of other operators in certain geographies, thinking differently about their longer-term plans of continuing to persist with their centers.
And so again, we’re continuing to monitor that. But that’s another aspect of the growth that we may see in 2024.
Josh Chan: Great. Thank you both for your time.
Elizabeth Boland: Thank you.
Operator: Our next question comes from Jeff Silber of BMO Capital Markets. Please go ahead.
Jeff Silber: Thanks so much. I wanted to continue the conversation about the new center pipeline. I know it’s a long sales cycle. I’m just curious in the current environment, are clients still receptive? Or are you seeing more caution given the uncertainty?
Stephen Kramer: Yeah. I mean, certainly, we continue to see an elevated level of interest. But as I shared on the last call and certainly is still the case, employers are definitely taking more time to make decisions. They recognize that putting a center on site is a long-term decision. And so they want to make sure that they are deliberating that appropriately. But again, as we think about the longer-term growth on this, our existing client base is really pleased that they have centers. And I think that those who do not and are considering it are, again, thinking about the impact they can have on their employees as well as their return to office. And so again, elevated interest, but certainly taking longer to make those decisions.
Jeff Silber: Right. And I know you’re not getting 2024 guidance yet, but I was curious maybe we can just frame it what you’re thinking in terms of price increases for next year relative to cost inflation.
Elizabeth Boland: Yeah. Yeah, we will be providing, obviously, detailed guidance when we talk with you all after 2023 is finished, so in February, but we are in the process of getting through our budget process now. And so from a general cost inflation standpoint, our primary cost in the full service business is certainly wages and other businesses have personal cost but other technology as well. But wage increases, we are looking at likely 3% to 4% from a general inflation standpoint. Other costs are more variable, given inflation, although certainly some of the things like energy have come down. Other occupancy costs have been a little persistently higher, but broadly speaking, call it, 3% inflation. From an overall pricing standpoint, our look at this point is likely in the 4% to 5% range.
