Eric Remer: From the SMB standpoint, as we talked about, our pipelines remain very similar, as Matt talked about from Q1, Q2 and Q3, we haven’t seen much shift in that. I think the areas that we talked about that we’re seeing some softness are really focused on consumer demand, which affects our marketing technology, more lead generation business, our rebates, which are — what our customers are selling or buying HVAC and things of that nature for their customers. And so the consumer map is the puzzle, is really the area we’ve seen the softness, much less so than the business of business, core software that we’re selling to the market place.
Pete Newton: Okay. That’s very helpful. And then just as you mentioned, the Kickserv acquisition, any updated view on near-term M&A from here?
Eric Remer: We continue to look at things that we think are going to be — help the overall ecosystem grow more effectively or provide more value to our customers. We look at a lot of things, as you can imagine, on a daily basis. I think we’re going to be very prudent. We have a lot of things going on internally and a lot of opportunity and utilization of cash on hand, making sure we put that — those dollars toward the best use, whether that is buy back stock or via M&A, all those are kind of looked at independently based on the best opportunity for the shareholders.
Pete Newton: Awesome. Thanks guys.
Operator: Thank you. One moment for our next question, please. Our next question comes from the line of Alexei Gogolev with JPMorgan. Your line is now open.
Elyse Kanner: Hi, thank you. This is Elyse Kanner on for Alexei Gogolev. So one of my questions has to do with the payment strategy implemented recently. I was wondering if there was any feedback on the strategy that increased software prices for customers that were not willing to adopt to payment functionality — and has this prompted any churn or attrition in customers?
Matt Feierstein: Yeah. Thanks for the question, Elyse. No, we’re obviously continuing to effectuate that strategy. Churn has actually been below expectations from the implementation of that mandate. So certainly quite happy it’s early going. But the strategy has been successful and obviously, one we will consider in the appropriate places looking at repeating as well.
Elyse Kanner: Great. Thank you. And then a quick follow-up. So after talking about the EverHealth consolidation, I was wondering what potential consolidation in other verticals could look like in the quarters or years to come?
Matt Feierstein: Yes. I mean, we look at that as certainly an opportunity. All of our verticals look a little bit different in terms of the core [IPTs] (ph) we’re going after, our solution set. So one won’t look exactly identical to the other, but this EverHealth experience is certainly a road map for us. We are ahead of that roadmap thinking about how it might look different in other verticals, EverHealth, for example, EverWell as well. As you know, and where, as you may know, we’ve done some of this in some of our horizontals as well. So EverConnect was a consolidation that came together from a discrete set of solutions that we acquired historically. So we’ve been down the path of consolidation actually for some time. We’re certainly in the midst of EverHealth right now.
EverConnect has been in our rearview mirror. And we’re using all of those learnings to think about what that consolidation will continue to look like really for the end customer because it’s all about creating a customer-centric journey for that end customer. And we believe that opportunity exists in verticals we haven’t been as active in yet.
Elyse Kanner: Got it. Thank you so much.
Operator: Thank you. [Operator Instructions] Our next question comes from the line of Mason Marion with Jefferies. Your line is now open.
Mason Marion: Hi, thanks for taking the question. So, you’ve done a nice job controlling operating expenses, including the announced risk. If we think about the macro, if it continues to soften, can you help frame for us how you’re thinking about margin progression going forward? Should we expect more modest expansion in ’24 if the macro doesn’t improve? Or are there other further initiatives that you could take as a management team?
Eric Remer: I’ll start, and I’ll let Marc go in. Look, I think — thank you very much for the question, by the way, Mason. I think we will, as an organization, we kind of showed this over the last several years as a public company. We’re obviously continually focused on how we can expand the top of the funnel and grow more effectively. But in addition to that, increasing our margins is incredibly important to us. We gave kind of long-term goals of that 25% to 30% range of EBITDA margins, were 24% today in terms of Q3. We’ll end slightly lower than that for the year. And our expectation is that we’ll continue to march down that path to continue to expand those margins in ’24 and ’25. And so it’s both combined with a slightly slower growth rate than we want. But even as growth rates improve, our expectation is we have a lot of leverage within the business, as we continue to scale to drive even wider operating margins in the organization.
Marc Thompson: Yeah. I mean, obviously, we’ll be talking about next year’s guidance next quarter. But to Eric’s point, there are a number of initiatives, which we think will have continuing positive impact on margin expansion, really in the short to mid and even long term. Obviously, one of those continues to be investments in the higher-margin areas of our business, like payments, which we will continue to focus on as well as just continuing to drive efficiency in the operation through a variety of initiatives, not the least of what you’re seeing in things like our EverHealth brand and product consolidation, which naturally drives cost the right direction and efficiency of spend and things like that. So I think we expect, as Eric said, as we had talked about really from the beginning, from the time we went public, continuing expansion of margins for the short, mid and long term.
Mason Marion: Understood. Thank you.
