Operator: Thank you. And our next question comes from the line of Fatima Boolani with Citi.
Fatima Boolani: Good afternoon. Thank you for taking my questions. Burt, to your prepared commentary around some of the flexibility that you’re introducing with respect to contract negotiations, particularly on the invoicing front, wondering if you can share a little bit more detail with respect to how some of those engagements are becoming more flexible and sort of the implications on collections activity. I can appreciate you shared preliminary fiscal 2024 guidance with us on a number of those fronts, but just to get a little bit more detail as to how some of these changes in business activity behavior from customers is influencing how you’re doing negotiations? And on a related matter, as the business does become more and more renewal, does some of the leverage in the model start coming from maybe changed incentives to your sales team around renewal business maybe getting a lower threshold of quota payment versus net new business, which is clearly becoming a little bit more challenging to do in this environment?
Thank you.
Burt Podbere: Fatima, good questions. So I’ll take them both. So with respect to structure, there are two things that come to mind. One is obviously on the enterprise deals and the phased subscription start dates that will obviously impact billings and cash. The second one is flexibility on when those payments become due. So we’re working with our customers to meet their budgets, to meet their time lines, and we’ve been flexible with respect to that. And of course, that will have an impact on cash as well. But overall, I still see €“ because of our business model and our strong business model and consistent Visma hasn’t changed. I think that we’ve got this great opportunity to be comfortable in terms of what I talked about on the prepared remarks.
And from a cash flow standpoint, we see a path to 30% free cash flow margin next year. And I think that just goes back to the strength of the model and the fact that we’ve got this business that is really durable. And with respect to how I see the big picture, I think that the things that we’re doing with respect to structure really talks to the partnering with respect to our customers. And that was well appreciated well back in the €“ when the pandemic forfeit. It’s being appreciated now in a macro with the headwinds that we all have. So, we think we’re still very excited about the opportunity to be able to partner with our customers. And then second, with respect to how we think about compensating our sales team and in light of our renewal business becoming larger and larger, I think that the good news there is that when you think about renewal business, the actual cost that it is to continue to generate net new ARR from an existing client is definitely lower than to go out — with respect to going out and getting a new logo.
So I think there is some leverage to that. So that’s why I think that we’re in a really good spot with respect to me talking about leverage for next year. But thanks for the question.
Operator: Thank you. And our next question comes from the line of Alex Henderson with Needham & Company.
Alex Henderson: Great. Thanks. I was hoping if we could talk a little bit about the cloud segment of the market not necessarily in terms of your rate of growth per se, but rather what you’re seeing in terms of company’s willingness to accelerate or decelerate their progression to the cloud workloads. And within that context, what kind of share do you think you’re picking up, or are you gaining share in that — in those workloads that are moving? Thanks.
