Marc DeBevoise: Yes. We’re not disclosing big quantifications here. What I would say is, we have a meaningful large deal pipeline. We qualified to $750,000 or greater. It is a meaningful portion of our current and future pipeline. We’re excited about what that means. They are longer sales cycles for sure, on those larger deals. But I think we have line of sight to a number of things that are there that we’re excited about that should be there for us in the future. And we continue to build it, right? It’s been building over the course of the year. I think it’s going to be a great opportunity going into 2024.
Mike Latimore: All right, great. Thanks very much.
Rob Noreck: Thanks, Mike. And with that, we’ll take questions from Max Michaelis, Lake Street Capital.
Max Michaelis: Hey, guys, thanks for taking my question. Just quick on the multiyear contracts. I was just wondering, given the current macro, if you’re facing any pushback from customers about committing to multiyear contracts.
Rob Noreck: No, not really. We’re actually seeing a good uptick from our customers. I think what they’re liking about it is we tend to lock in price over multiple years. So they’re able to see some price certainty, as Marc talked about, over that term, and it works for both parties, right? We get the consistency and the predictability of the business, and they get their costs locked in for a number of years.
Max Michaelis: Okay. And then gross margin for the quarter, down almost 200 basis points. Can you touch on that? Maybe what was the reason for that?
Rob Noreck: Yes. I think the way you really need to look at those two is you need to take a look at those without depreciation and amortization, and you need to strip that out because we’re actually improving. A big piece of the dip is related to the incremental depreciation and amortization related to some of the new products that we’ve been launching over the course of the first half of this year.
Max Michaelis: Okay. That’s it for me. Thanks guys.
Rob Noreck: Excellent. Thanks Max.
Marc DeBevoise: Yes. Thank you, Max. First, we appreciate all of you joining us today. To our investors, we appreciate your support to our customers and partners. We appreciate your business. And to our employees, we really appreciate your incredible smart and hard work. We operate in challenging times, both in the world and in parts of our industry. We continue to believe deeply in the long-term growth opportunity here at Brightcove. And we are committed to delivering on that opportunity and doing so while growing adjusted EBITDA and free cash flow. I believe our current valuation, which is a meaningful discount to other streaming technology companies and other SaaS companies with similar financial profiles, provides investors a compelling opportunity.
And we are confident that as we deliver on our strategic goals and improve our financial and operational performance, that will be reflected in our share price. With that, we thank you. We look forward to seeing you next quarter.
