A €“ John Gamble: Yeah. So I think as we talked about in the presentation, we’re expecting in the fourth quarter to get to 36% EBITDA margins, driven by some recovery in revenue but also really significantly by the acceleration of the cost actions. And the cost actions have a continuing benefit in 2024. So we’re expecting additional benefit from the cost actions as we go into 2024. And we’re also expecting to get additional cost benefits as we continue to complete the cloud transformation beyond North America, and we’ll start to start to see some of those benefits occur in 2024. So we think we still have tailwinds on the cost side that will benefit our margins as we get into 2024. And then obviously, as we get closer to 2024, we can start talking about revenue. But there certainly are cost tailwinds that continue out of 2023 and into 2024.
Andrew Nicholas: Thank you.
Operator: Thank you. Our next questions come from the line of Shlomo Rosenbaum with Stifel. Please proceed with your questions.
Shlomo Rosenbaum: Hi. Thank you for taking my questions. Hey, Mark, I want to ask you a little bit about the main functional areas for headcount reduction. And what I’m trying to focus on is NPI has been a big driver and driving particularly non-mortgage growth? And how do you make sure that you’re going to not harm kind of the goose that’s laying the golden eggs in terms of the ramp of revenue that we should expect over the next several years by reducing your headcount by 10%. And then I have a follow-up.
Mark Begor: Yes. We’re obviously quite thoughtful about that, as you might imagine, we want to make sure we’re quite strategic about where we’re doing it. Remember, the bulk of the actions are really related to the cloud transformation and accelerating those. So you’ve got a lot happening in technology. And the bulk of the actions are also in contractors. We hired a bunch of contractors to do the cloud work, and we’re taking actions now when we complete that and decommission the legacy infrastructure to take those out. The rest of the actions, I would characterize as kind of normal focus and thoughtful focus around where do we have opportunities to be more efficient and more productive while protecting our focus on growth. And growth includes our new products.
John Gamble: The only thing I’d add is as transformation completes the effort necessary to launch new products comes down substantially, right? It’s one of the real benefits from cloud transformation that we’ve been talking about substantially. And as data is on fabric and everything is running through Ignite and InterConnect, then the level of investment necessary to launch those new products really starts to become something that we can do faster and cheaper. So as Mark said, we do a very good job of making sure we understand who is working on what. So as we reduce resource, we take it out of specifically transformation. But also as we go forward, we expect to get a lot of leverage in product launches in terms of being able to launch them faster and cheaper because they’re on the transform cloud infrastructure.
Shlomo Rosenbaum: Okay. Thank you. And then
John Gamble: And we’ve seen that in EWS by the way. It isn’t something that we haven’t seen. It’s already happened in EWS.
Mark Begor: I think it’s a great point, just to add on that. I think we mentioned on the call today that EWS new product rollouts, kind of 2x our long-term goal, north of 20% last year. And as you know, they were in the cloud a year ago, 18 months ago, and it’s really shown what we envisioned happening, that the ability to bring more new solutions to market more quickly and more productively, as John pointed out, and efficiently would happen when you’re cloud native. And that’s part of what we expect to happen as we go through 2023, and we expect to continue in 2024, meaning we’re going to have additional cloud benefits, as John pointed out in 2024, and then we get the full year run rate impact of our actions in 2023.
Shlomo Rosenbaum: Got it, got it. And then just as a follow-up, I want to ask a little bit more about the competitive environment on The Work Number. You have a competitor in the market that’s talking about signing more contracts with mortgage processors, and the vast majority of those are being — putting them at the top of the waterfall. I’m just trying to square what they’re talking about and some of the growth that they’re trying — they’re communicating to the analyst community with kind of the market position and what you’re seeing. I mean, are you seeing increased threats to your market position and the volumes that are coming through?
Mark Begor: We’re not. I’d clarify with them if you want to try to understand better the top of waterfall comment. We don’t know where that is or how that happens. We haven’t seen them as a competitive threat in the marketplace. I think as you know, our record additions are quite substantial. We’re — we added in the quarter more records — more unique records than they have. So we’ve clearly got an ability to attract new partnerships and individual relationships given the scale of the company. And then on the commercial side, our integrations are so deep and so substantial, we haven’t seen an impact from a revenue standpoint. As you can see, the numbers are super strong in Workforce Solutions across all of our verticals, including mortgage. Their outperformance is exceptionally strong and hasn’t slowed down.
A €“ John Gamble: And just please remember, our historical record base is incredibly valuable to our customers, certainly in Talent, certainly in Government, increasingly in mortgage, we talked about mortgage 36 on in the conference call. And that’s a place where we have tremendous strength in general and Verification Services and an even stronger position in historical records.
Q €“ Shlomo Rosenbaum: Got it. Thank you.
Operator: Thank you. Our next question is coming from the line of Toni Kaplan with Morgan Stanley. Please proceed with your questions.
