David Gamsey: While running, particularly in the international market places, there’s a certain amount of fixed costs that we have in all of our operations. So, as that incremental revenue comes back and starts to fall through that will enhance the margins in the international operations. As Scott, you know, previously said we are going to continue to invest organically. We’re continue to invest in product and in technology. But look, we’re already driving industry leading margins by far. We’re at 32.3%. We’re implying margins of 33% in Q4. But through automation and through incremental revenue, we think there’s still room to expand on those as well.
Ronan Kennedy: Got it. That’s helpful. Thank you. And as a follow up to the question on capital allocation that was primarily from a near-term standpoint and leverage. Can you talk about M&A in terms of pipeline evaluations you’re seeing the priorities? And then, also, capital allocation from a longer-term standpoint with strong cash regeneration, low leverage, but kind of a challenge of managing liquidity flow as you did very well through the special dividend. You know, would you give consideration to a regular dividend?
David Gamsey: Well, first, relative to the dividend, that’s something that’s discussed at the board level. This was a onetime special dividend. It was a onetime dividend at this point in time. From a capital allocation perspective, we’re going to remain disciplined and balanced. We’ll invest organically. We are active in the M&A marketplace. We are always looking at deals in the marketplace. We’re not going to overpay for them. Valuations have gotten somewhat more reasonable, but they’re still a little bit on the high side. We’ll continue to look at every deal that comes out.
Ronan Kennedy: Thank you. Appreciate it.
Operator: Thank you. And again, as a reminder to ask a question that is star and one on your touchtone phone. We will take our next question from Stephanie Moore with Jefferies. Please go ahead.
Stephanie Moore: Hi, good morning. Thank you. I was hoping you could talk a little bit about your different sales pipeline. If you’re seeing the pipeline, you know, the closing times changed, you know, maybe any changes in sales cycles kind of versus, you know, communities’ quarters this year.
Scott Staples: Stephanie, overall pipeline is – you know, total pipeline is great. Actually, total pipeline is probably the highest we’ve ever had as a company. So, there are a lot of deals out there. We are not seeing really any change in sales cycle duration. In general, most new logo deals take about six months and upsell, cross-sell takes about three months. So, obviously, we love the sales cycle on upsell, cross-sell, because we’re already there and contracts are already in place and that kind of stuff. I think the only, you know, the big difference that we’ve seen in deals this year, and I think it started Q4 of last year, started but really showed Q1 of this year, is how many more procurement lead deals there are. And so, like I said earlier, I think companies are looking to save money and consolidate vendors.
And a lot of this stuff just makes sense. And so, I think the only change that we’ve seen in the sales process is more procurement led deals. And I don’t think that’s necessarily a bad thing because it, you know, our – it gives you a chance to get into more RFPs. And obviously, we can provide scale and global reach and things like that.
Stephanie Moore: Got it. No, that’s really helpful. And then, I guess, I have a follow up, kind of more of a clarification. On the guidance for 2023, I think you noted the amount expecting to come in at the lower end of those ranges. Is that just a function of maybe kind of the lack of seasonality you’ve seen in the fourth quarter or just how year to date trends have panned out? Just trying to get a little bit of color on what drove the expectation [indiscernible].
David Gamsey: So, we’re really reaffirming the guidance that we previously had in place. We directed towards the low-end last quarter, we’re reaffirming that that is their accurate, you know, guidance relative to where we’re ultimately going to end up. And that’s really a function of base growth. That was really the wildcard all along. It continues to be the most sensitive variable in the macro-economic environment that we’re operating in. And again, we’re just reaffirming that guidance that we had previously had in place.
Stephanie Moore: Got it. Nope, that’s my fault. Thanks, guys. Appreciate the color.
Operator: [Operator Instructions] We will take our next question from Kyle Peterson with Needham. Please go ahead.
Kyle Peterson: Great. Thanks for squeezing me in guys. Good morning. I want to start off on the international segment and definitely appreciate, you know, some of the headwinds like the IT services and BTS phase has been going through, but I guess, thinking about expectations for the fourth quarter. Should we expect growth in that segment, at least a year over year basis to be fairly similar with what we saw in the 3Q and then the American segment kind of makes up in the Delta since it seems to be holding up quite a bit better?
David Gamsey: Well, let’s start in total. In total, Q4 by definition, if you look at low end of guidance, you’ll see that from a revenue perspective, it’ll be slightly down year over year – it will continue to be mid-single digit negative. And a lot of that is the result of international which is still way off. So, as Scott and I both said, APAC was down 25%, India was down 45%. We expect that to continue in Q4 as well.
Kyle Peterson: Got it. That’s helpful. And then, maybe a little bit more color on some of the eight new deals you guys won. Where – was that pretty broad based across verticals based on at least the revenue mix you guys have today? Or was there any particular subset of the client base that are worth calling out on the strong side on some of these new wins?
Scott Staples: So, yes, again, pretty broad across verticals. So, as I mentioned, broad across, you know, competitive buckets, broad across verticals. There was one large deal in there in the transportation space, but I don’t want – you know, we’re not going to go into more detail than that.
Kyle Peterson: Okay, fair enough. That’s good color. Thanks, guys.
Operator: And I see no further questions at this time in queue. I will now turn the call back over to Mr. Staples for closing comments.
