Joe Goodwin: Great. Thank you so much for taking the question. I guess, Andy, when you set up investment in Apartments.com in 2015, that business was at a larger scale than the residential business is today. It took you around six, seven years to get to north of $700 million in revenue for apartments. Your 2027 target calls for at least $700 million of residential revenue on an organic basis, I believe. So I guess just other than the residential market being larger, what are some of the other elements or factors in the residential market that gives you the confidence that the residential business will effectively outperform farmers.com business?
Andrew Florance: Sure. So the market — the revenue was actually roughly the same, the revenue in place that we had. So I think I don’t know 75 — were roughly 75 last year. So it was roughly the same revenue. The market itself in residential is dramatically larger. Also, our experience with operating digital marketplaces has continued to grow and the number of resources we have to bring to bear in both sales talent, SEO, SEM marketing, software development, the whole range is broader. Also, I believe there is some level of synergy across these platforms. So because you have a strong presence in apartments or LoopNet, there is or land or in any of these areas, there is — there’s a little bit of an accelerating effect across the platforms.
But I would say I would go back, one of the things is that people forget, but that in — with Apartments.com, there was a lot of competition that was better established than we were. So there were 4 or 5 players from Craigs list to Zillow to apartment guide to Rent.com to for rent to apartment finder all bigger than us that we were competing up against. And back then, when you looked around at apartment communities, most we’re buying from one or more or several of these different players. There’s something very different happening in residential real estate, which is the vast majority of players in residential real estate aren’t buying from any of the of the established larger residential portals. The vast majority of people aren’t buying anything from them.
Our number one competition in my mind is the United States Postal Service. So I feel very comfortable competing against the United States postal surface. In fact, I don’t know what your mailbox looks like, but about the last thing in my mailbox is residential ads. So I collect them all from every place have a mailbox and I bring them all and I throw them at a conference table in our office here in the product design studio. Just as a reminder of how much money residential real estate is spending on marketing properties very little of it with who you would consider to be the entrenched real estate portals.
Joe Goodwin: Great. Thank you.
Operator: Thank you for your question. There are no further questions at this time. So I will turn it back to Andy to wrap up.
Andrew Florance: Okay. Well, I appreciate everyone joining us for this fourth quarter 2022 earnings call. We’re — in 2023, we expect to deliver accelerating revenue growth and strong margins, very strong margins in the commercial business. while continuing our careful, thoughtful, responsible investment into the residential market opportunity. The strong performance of our core commercial real estate products support that contained investment into Homes.com. And back — going back to the analogy of 2015, we invested tens of millions of dollars into marketing Apartments.com, and that brought our margin down a little bit. But today, that business has become a multibillion-dollar asset for our shareholders with an incredibly attractive ROI, not dissimilar to what the investments we made in CoStar and the incredible ROI there.
