Johnny Hecker: Thank you. Yes, good question. I think we’ve started that process earlier this year with the go-to-market realignment. And I had the opportunity on the last earnings call to take everybody through our continuum of customers and how we are migrating our sales promotion to meet our customers on their buying motion to be more flexible in the market. And I think we’re going to continue on that road. As John mentioned in the remarks, we have started the e-commerce channel for the Corporate space. That’s proven to be a successful program. So we’re going to continue down that road. So the one thing will definitely be – that alignment with our customers’ buying motion and continuing that realignment of our go-to-market sales and marketing teams.
And the other team will be obviously continuing to analyze our existing customer base and doubling down on the verticals that are most successful for us today, primarily that’d be the healthcare space, right? We’re seeing a lot of growth in that area. Scott talked about it in his opening remarks that it’s more than 50% of our Corporate revenue by now. So we’re going to continue down that road and double down on those verticals.
Q – Unidentified Analyst: Great. Thank you. And then maybe just one for Scott or Jim. As you guys think going into 2024, any sort of guidance on capital allocation strategy or changes there? Could you see the optionality on the debt side but what’s sort of the priority here given the macro headwinds?
Scott Turicchi: Yes and we have a related question that came by e-mail but I’ll answer your question first and then there is a derivative of that question that came by e-mail, which I’ll also address. So we were – just to bring everybody up to speed who hasn’t followed the company since the spin. as I noted in the opening remarks we were limited in our capital allocation strategies to this point and only being able to obviously invest in the company repurchase our equity securities or do M&A. We did a little bit of M&A very early on in acquiring Summit but that’s not really been the focus of the company as you know. So most of our capital allocation has been allocated to repurchasing stock, which we’ve done fairly consistently and of course banking cash.
Now our attention shifts somewhat in that we do have a maturity coming up in a little under three years. Those will be the 6% notes due October 15 to 26; and then two years later the $500 million of 6.5%s. Given that we’ve crossed the two-year threshold of the spin, we now have flexibility of buying the securities. Now in the case of the 6.5%s they’re non-call. In the case of the 6%s they’re callable but at a $1.03 price and because of the movement in interest rates both securities trade below par. A little unclear exactly the spot price the bonds are not quite as liquid as the stock. But I think it’s safe to say the 6.5%s are in the mid-80s and the 6%s, which have the nearer-term maturity are closer to the mid-90s. And so we will be looking – the Board authorized a $300 million repurchase program over the next three years.
But I would note that it is opportunistic. So don’t be looking for a tender tomorrow at some spot price. Likely we will spend some time looking at what can be done in the open market not dissimilar to what we do with our equity buyback program. Clearly, as we look at both our cash balances and prospective free cash flow, we will be at least over time allocating I’d say a meaningful amount of that to debt retirement. What I can tell you is at the pace at which it will come or whether it will come in dribs and drabs or chunks because the state maturity is three years away. We want to be – we want to get the best deal we can on both securities. We will be looking to buy each tranche but we’ll have to be – I’m sure you’ll be asking the question you’ll see it in our Qs and our Ks, how much we purchased each quarter.
