And I know you’ll remember that in Q4 ’22, we announced some targeted actions. So we continue to rightsize our real estate footprint, particularly as we think about the new hybrid work environment. We slowed our hiring. We took other targeted cost actions as well. And we expect to see those benefits come to fruition in our Q4 ’23 as well. So when you add that equity position growth and you add the operating leverage in our business and the explicit actions that we are taking for Q4 ’23, that gives us high confidence that we’ll be able to have the margin expansion and drive the earnings growth for the full year.
Operator: The next question is from Dan Perlin of RBC.
Daniel Perlin : I wanted to just touch base on the free cash flow conversion. It was great to see that, that’s ramping back to kind of 63%. The question is, how do we think about the pacing of that kind of from here given the heavy lift is kind of behind us. Anything that you can help us kind of reconcile as you think about it getting back to closer to 100% free cash flow conversion?
Edmund Reese : Yes. I mean — so thanks, good to have you join the call, Dan, first of all.
Daniel Perlin : Good to be here.
Edmund Reese : What I would say is you’ve seen the sequential uptick 48% from fiscal ’22, which had our peak level of investment in it. We said that, that client platform spend was going to be lower beginning in Q2 of ’23 after going through our peak quarter of Q1, and we saw that client platform spend was down 50% in Q3 — in Q2 and is down 35% in Q3, and I expect to see the continued decline year-over-year as we go into Q4 as well. As a result, you’ve seen the free cash flow conversion tick up 10 points over the last 2 quarters and sequentially in each of those two quarters. So as that client platform spend drops, we’ll continue to see improvement. We’re not yet ready to give exactly what that number is for fiscal ’23. But I think the trend you see gives us — is what gives us high confidence that we’ll continue to see it significantly better than fiscal year ’22.
And as we’ve been saying this entire time trending towards our more historical levels as we go into Q4 ’24 — as we go into fiscal year ’24.
Daniel Perlin : Yes. That’s great. And just as a — my follow-up is really it was a nice quarter, up 10% on a recurring basis. I’m wondering — you called out a pipeline, I think 40%. So the demand sounds good there. I’m wondering, are there things or I should say, modules in particular, that clients are gravitating towards? Is it just they want to take books of record? Is it order management? Is your alternatives? And you’ve got a lot of them in this platform. I’m just wondering where, if anything, they’re kind of finding the most interest these days?
Tim Gokey: Yes. Dan, thank you very much. And also this is Tim. Also welcome to the call. Thank you. Good to have you here. I think there are — as we’ve said in past calls, it is we really like the evolution of how we’re going to market in terms of a componentized approach, which really allows clients to, as we call it, transform on their terms, which means really take a North Star and put in place solutions that are on the direction to that North Star that create value along the way. We are seeing a lot of interest in some of the foundational technology, the client and relationship master and that really sort of pulls things together with our onboarding solution. We’re seeing strong interest in corporate actions and have multiple firms in the pipeline there.
