Art Zeile: Well, I’d say that we continue to see a negative bookings rate, meaning that we’re going to see a decline for Dice. And the bookings are of course a combination of renewal rates for existing customer contracts, but also new business activity. I think that renewal rates are going to still hover around the 80% mark for our Dice customers. And that’s because again we’re still shaking out some of those smaller staffing recruiting firms from our customer base. And we are still seeing an impairment specifically to commercial accounts, new business bookings. We are seeing an improvement, you’d say slightly over the course of time with a staffing recruiting new business team. So I hope I give you at least a qualitative sense that we do expect that there is going to be a decline in bookings from Q4 of last year to Q4 of this year for Dice.
And the mechanism behind that CJ is different. I still think that the jury is out, just as I described in my answer to Ethan, the last caller who — and we talked about the fact that there is a looming government shutdown anytime that happens. And specifically we saw, at least in the last month, that it happened pretty dramatically where contractor activity slowed down because the contractors are waiting to see what scenario exists whether or not they’re going to get paid, whether or not there’s going to be a government shutdown or an extended one. So, I still believe that CJ is such absolutely vital tool to find cleared professionals that even those folks that are continuing forward with their existing platforms. They need clearance jobs, but the new business bookings are affected when there is the prospect of a government shutdown.
Eric Martinuzzi: You kind of got me halfway there on the bookings trend. I guess maybe it’s something that you’re not comfortable putting too fine a point on, but I guess, I was hoping to is there any sense of a troughing that things will — we don’t expect it to get worse from in Q4 versus Q3?
Art Zeile: I would say qualitatively, we saw a little bit worse bookings performance in Q3 than Q2, but I feel like we’re going through the trough right now. I think that we’re not seeing a pickup in activity, but we’re not seeing a significant decrease in activity. And the reason why I talked about Q4 of last year versus Q4 of this year is of course Q4 is our biggest or one of the two biggest quarters for our renewable bookings. Most of our customers have termination dates in their contracts of either December or January, and that’s why I wanted to bring out the point of seasonality.
Eric Martinuzzi: I guess the ARPU on the contracts Dice up about 4% and then CJ up about 11%. How much of that is kind of seat driven versus price increase?
Art Zeile: I would say that that is probably price increase almost entirely. But I would also say that, we are currently shaking the tree pretty hard in these less-stable customers, ones that are less than $10,000 in annual spend are the ones that are dropping out of our customer count. And so that also makes the difference in terms of how mechanically we get to that average ARPU figure.
Eric Martinuzzi: Okay. And then, for the 27% of Dice contracts that are choosing to not renew where are they going or is it just fewer seats? What’s the alternative for them if they don’t renew it?
Art Zeile: What we have found, again, this is the cohort of customers that are effectively not renewing their Dice licenses and they are very, very small firms. So, they have generally either gone out of business or they have suspended a lot of their expense structure as they are waiting for the demand environment to improve. They are not getting the orders on their side to essentially staff certain customers that they have had in the past.
Eric Martinuzzi: Got you. Okay. And then lastly, it’s good work on the 25% adjusted EBITDA margin. You have also given an outlook for 25% on the adjusted EBITDA margin for Q4. Does that imply any further restructuring or cuts or is kind of the cost structure relatively stable now?
