Now looking into 2024, our business has already banked $525 million of incremental revenues from contract wins. We won a large contract win with the U.S. sporting goods, a 15-year contract due to start in 2025, but when you look into the environment, you will probably see gradual increase over time. Customers’ volumes will remain likely subdued at the start of the year and improving throughout the year and we expect to get back into revenue growth in first half and even acceleration on that in Q4. And during this time, we expect our margins to hold steady and we continue to get support from productivity initiatives we highlighted, which is going to give us about a $40 million run rate into 2024. Remember, we are ending this year about $25 million, $26 million of benefit.
So, a lot of new wins supporting next year improvement into first half, more into the second half and some of these activity headwinds you’re talking about in Q4 are seasonal in nature.
Jason Seidl: Let me turn it over a little bit here to Adrian. I wanted to talk a little bit about AI. A lot was discussed in some previous questions. But when I look at the pre-pipeline conversion rates, they mentioned sales as a part of it. How much is AI had an impact on those pre conversion rates on the pipeline? And how much do you think it could have in the future? Do you think your pre-pipeline diversion rates could actually improve with the increased use of AI and the increased sort of marketing to the customers on it?
Malcolm Wilson: Yes, I definitely think that there’s a compelling reason for us to believe in what AI can do to differentiate our pursuit with customers in the pre-pipe and the pipeline. I mentioned and I gave one example of where AI has been able to make us more precise in our labor planning, but there’s other myriad examples across our enterprise where we’ve used AI to improve robotic travel times and wait times is another fantastic example we’ve used AI to optimize transportation routing, which not only has financial benefit. But what’s very important to our customers around the ESG metrics that they’re also looking for. So yes, I do believe that in our use cases and in our discussions with customers in the pursuits, sharing these success stories and what it can mean to customers is going to be a very big part of it.
Jason Seidl: So moving forward, you would expect the conversion rates of the pre-pipeline to increase?
Malcolm Wilson: That is the hope and intention, yes.
Operator: Thank you. Ladies and gentlemen, that is all the time we have for questions today. I’d like to hand the call back over to Mr. Wilson for any closing remarks.
Malcolm Wilson: Thank you, Darryl, and thanks for hosting our call today. We really appreciate that. We’ve delivered a robust third quarter. We’ve upgraded our 2023 adjusted diluted earnings per share and adjusted EBITDA guidance every quarter and now taking into account our strong operating results and the incremental benefit from our recent acquisition of PFSweb, we’re very pleased to be raising this guidance again. Set against a softer macro, we continue to deliver strong new business wins, profitability and free cash flows underlying the resilience of our business model, the deep expertise of the team and a secular growth story. With that, I’d like to wish everybody a great rest of the day, and thank you for your attendance. We’ll bring the call to an end. Thank you.
Operator: Ladies and gentlemen, this does conclude today’s teleconference. Thank you for your participation. You may disconnect your lines at this time. Have a wonderful day.
