Taylor McGinnis: Perfect. And then just my last question is, are you able to quantify the deals that were pushed? And how you’re thinking about timing, let’s say, from that perspective?
Marje Armstrong: We haven’t quantified the specific dollar amount. And I think some of the — as the macro environment changes, again, the time to close just deviates from the normal rhythm that we typically see. So, some of these deals could be just a matter of closing on this side of the quarter or next side of the quarter, right? And we try to make the right economic decisions and not be beholden to our quarter close either, but I wouldn’t say that there’s anything sort of very different that we think we can articulate in terms of beyond the near-term macro choppiness that has changed in our business.
Operator: The next question is from Andrew Obin with Bank of America.
David Ridley-Lane: Good evening. This is David Ridley-Lane on for Andrew Obin. Curious what the feedback was from the Leaders Forum you held in October. And what was the tone of clients there? And any early indication of kind of client budgets here in calendar 2023?
Michael Farlekas: Yes. It was — that’s a remarkable event. It’s the first one we’ve had for in three — the first one in three years, and that’s been going on, I think, for seven years prior. And that particular event, just for — information is oriented towards the very senior executives in a very intimate environment. So we get — it’s about 90% customers telling what they do on our application and our platform, which is really powerful. I’d say, overall, the environment was certainly very enthusiastic about our relationships. And I always learn a lot. You talked to have customers. I sat — had dinner with one that was the world’s biggest producer of frozen fish, and all the things they do for that and how they’re using our transformation managers to help them get fish to market sooner.
So, it’s a really great event. Overall, I think people in the supply chain business never cease to try to improve their operations. Companies will never ever stop trying to reduce or improve their gross margin. That’s the fundamental nature of supply chain software. And we all have great ideas. And it’s a matter of how do they compete internally for the projects because the companies only have so many people to do so many things at one-time. And that’s the same as it’s kind of always been in my almost 25 years in the business. In terms of budgets, obviously, everybody is facing the same uncertainties. And I’d say, the macro environment certainly is still a reverberation of COVID, and you see it clearly in the numbers. And I think more — it’s the uncertainty of what’s going to come that people are uncertain about.
And I think that kind of needs to be — a little more clarity. I think overall, that’s the issue is that we were talking about a recession now for a year, and people don’t know how to really react to that and deal with that. So I think that’s really the hesitancy is really just a continued uncertainty one way or the other.
David Ridley-Lane: Got it. And just a sort of follow-up on that. I mean, in the past quarters, you’ve talked about pipeline growth exceeding bookings. Are you still adding to the pipeline here even as customers are more cautious?
Michael Farlekas: Absolutely. We’ve seen this story before. Demand doesn’t change. The pipeline still goes. Our yield rate maybe come down a notch or two on conversion. But again, they come to us to solve very complex problems. Those complex problems are not for the here and now. They’re for the next 15 years. So, it’s just a matter of whatever doesn’t get done today usually gets done tomorrow. And we would expect nothing to change in that kind of a cycle.
David Ridley-Lane: Great. And then, one last one for me. Just on the Logistyx — transition for the Logistyx clients. Would that be done — are we talking another 3 months, 6 months? Just sort of better understanding kind of the headwinds on the professional services side?
Michael Farlekas: Yes. It wasn’t an overly large combination for us. It was a $40 million kind of range. And we inherited some things that we had to clean up. And we’re doing that as is our responsibility. And we expect that to last a quarter or two, more maybe, something like that. And then kind of start to normalize out. Remember, smaller companies usually inherit a little more problems with smaller companies given the nature of their business. That’s something we’re used to dealing with. And it’s something that we’ve had great success kind of fixing over time, and that’s kind of the essence of our business as we make operations better, and we expect to do that here as well. And if it takes a little bit of time, we’ll do it right, and then we’ll have a very longstanding relationship.
On the acquisition, I just have to comment, like the opportunity set there is enormous. I was literally talking to one of our larger clients today. And he was talking about a transition from like the on-premise solution that we have to cloud solution. And he mentioned they had something like 120 servers that they were like dying to have us take over. So, we think the global nature of a parcel solution is very differentiated in the marketplace. And that’s really the primary reason we really liked that company when we saw it and knowing that we had to deal with some stuff to get to the other side. So, we have a very unique solution that combines with our really great solution or TMS and global trade and also international shipping via our bookings platform.
So, we’re really building what we believe is the world’s best Logistyx execution system. And I couldn’t be more excited about where we are with that.
