All of the opportunities there, we’ve invested in our global network, we’ve invested in the agent network. And in fact, the StudyLink acquisition makes sense in the context of penetrating the India opportunity even more. And so we’ll keep focusing on making sure we are effective in the Indian market as we have been for years and look forward to good growth there again continuing forward.
Operator: Next question comes from the line of James Faucette with Morgan Stanley.
James Faucette : Just wanted to ask back on the education vertical. What that’s looking like in terms of expanding footprint within your existing education partners? I’m just trying to get a sense of how much customization and backend integration work maybe required there? And how that impacts our sales cycle and implementation cycle as we think about the land and expand opportunities?
Rob Orgel: Rob here again. Look, I think part of the great success we’ve enjoyed and continue to enjoy in education is because we as a company are very good at these integrations. It’s been one of the core competencies of the company that we do a great job integrating. In the UK, we have longstanding integration with retrieval. We talked in our most recent call about the winning partner of the year for the integration with Ellucian. I think we’ve talked about universe top to address markets like the Spanish market. And around the world, in we’re somewhere in the neighborhood of 40 to 50 of these integrations that help service in the education space. So all of those are things that help us, in fact, our lower the deployment cycle, increase the pace with which we can sign deals, because those integrations give them comfort that deployment will be successful and that we can give them good confidence that the software and the solution will deliver on the ROI that we described for them.
So again, it’s one of the core strength of the company, helps us go faster. It’s part of what was the win the wins that we announced in SFS for the U.S. in Q3. It’s really a core part of what we do. And I think we’ll continue to make sure that we are a market leader in those integrations because of all those benefits I described.
James Faucette : And then outside of education, can you give us a sense of what your sales force looks like in terms of how many people do you have in education versus healthcare versus travel. And how we should think about the relative growth rates of those different segments or end markets generally on a go forward basis?
Rob Orgel: We’re certainly the most developed in terms of having the largest team on the education business. Obviously, it’s the biggest revenue. We talk about internally both in terms of sales team and the broader go-to-market team, which includes our relationship managers, which are very important part of that successful land and expand strategy that you heard us talk about on many calls. So that team continues to grow because of our success growing internationally. Probably, you’d say the fastest growing teams in the company are in travel and B2B. Certainly as a percentage, those are emerging segments for us. We’re excited about the growth rates in those businesses and continue to invest there. Probably slower growth on the healthcare side of the team, although where we see particular opportunities, we still add to that team. But in the bigger growth and that team is around travel and B2B.
Michael Massaro: James, just to add one more in our tiny bit on top of that. I would say in relation to travel, for instance, and in the future, probably B2B, you’ll see both kind of that sub segmentation focus and geographic expansion when it comes to team expansion for those, right, following the same playbook that we used for the education business where as we open up new markets, we want to make sure we’ve got local experts in those markets driving that growth and supporting those clients. And so that’s just another flavor for where those dollars are actually going to help those travel and B2B teams expand.
Operator: Next question comes from the line of Ken Suchoski with Autonomous Research.
Kenneth Suchoski: I just want to ask about the 4Q outlook. Could you just provide some more detail on the 4Q gross margin versus OpEx expectations in 4Q and I guess how we should think about getting to that EBITDA outlook for next quarter? Thanks.
Michael Ellis: Hi, Ken. It’s Mike Ellis. So I think first thing I want to do is kind of unpack the revenue guidance just so you have a clear look at that. Essentially, we’re adding that $1.6 million due to the optimism we expect in Q4 based on the organic growth of the business. And we are adding $1 million from the StudyLink acquisition. And that’s offset by about $2.5 million associated with FX headwinds. And that gets to where we are the midpoint of the guidance range, but in our estimation it shows really good optimism related to the organic growth. If you want to take it down to the AGM level, I would suggest that you look at the historical trends of Q4 2022 versus Q3 of 2022 and use that same type of model as you think about forecasting out your Q4 2023 AGM.
And then from an OpEx perspective, listen, we have said all along that our investment thesis is all around go-to-market and then secondarily to that is our technology and engineering teams. So I would expect that when you look over a year-over-year basis, you would see relative similar increases for Q4 as it relates to the trend that we saw Q3 over Q3. But again really pleased with the opportunity to continue to generate to EBITDA in Q4 as well. And that midpoint of that range is approximately $2.5 million which again we’re pretty with the overall generation of incremental adjusted EBITDA over a year basis, again meeting and beating the expectation of north of 300 that we first gave at the beginning of the year.
Kenneth Suchoski: And Mike just on that FX point, I mean, what’s your expectation around the FX impact in 4Q? So not the change versus prior, but just the dollar impact on adjusted revenue in 4Q when you look at the year-over-year trends and I guess can you just remind us about your hedging policy and I guess if you do hedge the currency and I guess which line that flows through in the P&L?
Michael Ellis: Yes, so first and foremost, the change in revenue as it relates to the FX headwind or tailwind, and we’ve been really transparent historically about all those have impacted our revenue growth rates is really about the translation of foreign subsidiaries that are dominated in local currencies into U.S. dollar currencies for reporting purposes. That’s the majority of the headwind and tailwind that we talk about as it relates to when we say FX impacting or being beneficial to our revenue or our adjusted EBITDA. With respect to your hedging question, that really comes down to a transaction basis. And we will in fact hedge specific currencies that are appropriate to hedge based on the cost benefit analysis associated with that. And so we’ve had relatively good success on that. And if there was anything to call out, it would be showing up in our OpEx, and typically in the G&A line.
