Jonathan Collins : Sure. On the life sciences side Shlomo, we highlighted that the most of the pressure in Q3 on the subscription file came from the real-world data business. So that’s a business where we’ve seen declining sales over the past few quarters. We knew it was going to impact the subscription file. We also have a small group of products in that group that have the ability to stop the feeds. We did see a little bit pressure on renewal rates when we spoke with customers. We got some feedback around budgetary pressures and that’s part of what is informing our outlook on the fourth quarter. But as I mentioned, we’ve got pretty good line of sight in the other areas and this as well to on the subscription file. I do expect that subscription growth is going to approve in Q4 and then we’ll be very careful managing the really important Q1 renewal cycle for next year that’ll have a big impact on 2024’s performance.
Unidentified Analyst: Thank you.
Operator: Thank you for your question. Our final. Question comes from the line of George Tong with Goldman Sachs. George, your line is now open.
George Tong: Hi, thanks. Good morning. In life, sciences and health care you saw negative subscription revenue growth because of lower real-world data sales and some cancellations. Can you elaborate on your broader strategy for managing your real-world data product to drive improved growth?
Jonathan Gear : Sure, yes. So, let me go and cover that. So, this is a key strategy shift we made in the middle of the year post Henry Levy joining the business. And just as a reminder, prior to those last two, three years since the acquisition of BRG we’ve been heavily focused on selling data as a product. So we’ve taken our real-world data platform, sold it as data and sold that to other providers who have been enhanced provide analytical tools to the end-customer which is the pharma companies. We have made a decision to really to focus on trading that eligible platform ourselves, and migrating away from these large, lumpy deals and adding the value ourselves because we believe we’re best positioned to go ahead and do that and begin selling more and more directly to pharma.
That is a, as we start to make that investment this late last year and then really enhanced it this year. And so, what that means is from a revenue profile, it means shifting away and a near-term hit on revenue of growth transaction. And then a little bit of a subscription pull on the comments when you make a transactional sale. So what you do as you sell a transaction sale, you get a dump if you will, the client gets a dump of content there. And then, if it’s, say it’s a three year contract, we’re updating that content throughout and somewhat bit of a subscription pull along there. And so what you’ll see in terms of our financial results is a pullback on transactions in the near term. A impact on subscription within life science healthcare, this is tied to those large transactions.
But as we build out the platform, we will go over time a much more sustainable, higher growth, higher value product, which is primarily subscription going forward. And that you’ll see coming this year and in years to come. Thank you.
George Tong: Got it. Very helpful. Thank you. Thank you for your questions. This concludes our question and answer session for today’s call. I will now pass back for any final remarks. Thank you.
Jonathan Gear : Sure. Thank you so much. I will just go and wrap again. Thank you everyone for joining the call. We feel again, very good about the overall results in the quarter. Good progress, obviously still work to done. But we’re seeing the progress we expected to see. So, thanks everyone. Have a great week and look forward to talking with you soon. Good bye.
Operator: This concludes today’s Clarivate third quarter 2023 earnings call. Thank you for your participation. You may now disconnect your line.
