Pablo Singzon: Hi. Thanks. Mark Jr. if I heard you correctly I think you suggested that revenues and costs would be roughly consistent sequentially when thinking about the 4Q? Would that then suggest a similar margin profile for the fourth quarter or are there discrete items that you should think about?
Mark Jones: Yeah. So we’ve got the revenue guidance for the full year. I would point you to that for the fourth quarter revenue numbers. From a cost bar perspective those should be relatively consistent with the third quarter. We’ve on-boarded a few people but nothing that’s going to move the employee common benefits line too dramatically. So I would just point you to the way seasonality looks from Q3 to Q4 historically, our revenue guidance and then a relatively consistent cost bar from Q3 to Q4.
Pablo Singzon: Okay. Yes, that’s effective. Thanks. And then as I look at employee comps maybe beyond the fourth quarter, clearly this quarter grew much lower than revenues. I think partly you’re reflecting what you said about the renewal book hitting a much leaner expense base. Do you think you can maintain this comp ratio as you scale up in 2024 and 2025 or is there some giveback as you ramp up and do more investment?
Mark Jones: Yes, so as we stay laser focused on productivity, specifically with corporate agents that will help make sure we don’t see that employee comp benefits start to lose scale. The other big piece of that and actually the biggest piece of that is the service department. And so making sure we can drive efficiencies and scale out of the service department will keep that employee comp benefits line continuing as a smaller and smaller piece of total core revenue. And then obviously, we’ll make investments in areas that we need to make investments in things like technology and the partnerships department, franchise development, those type of areas. But you shouldn’t see us losing scale dramatically in employee comp benefits as we onboard new agents. We’re just too focused on productivity to let that happen.
Pablo Singzon: Okay. And then last question for me also related to employee comp. If you look at stock comp as a percentage of overall employee comp, it’s increased from let’s call it high single-digit to mid-teens level now. Is that a consistent ratio to think about, right? So say mid-teens for the foreseeable future?
Mark Jones: So we’ve talked about stock comp a lot. The way we think about it is the dilution effect on the total share count. And so what we’ve said historically is that 1% to 2% dilution rate in annual stock option awards. Obviously, the gap recognition of that is a Black-Scholes valuation, which has other factors of our control that drive that compensation number. And so as you go forward on an annual basis, you should expect a share count dilution in the 1% to 2% range. And the Black-Scholes calculation will be what it will be depending on volatility in the stock market and risk-free interest rates.
Pablo Singzon: Got it. Thank you.
Mark Jones: And it is a non-cash expense.
Operator: Thank you. At this time I would now like to turn the call back over to CEO, Mark Jones for closing remarks.
Mark Jones: Thanks, everyone for your time and participation. We appreciate it and hope you have a good day.
Operator: Ladies and gentlemen, this concludes today’s conference call. Thank you for participating. You may now disconnect.
