Jon Kessler: Yes. And on the COBRA side of it, that’s just — again, we’ve got — we’ve mentioned in the script a little bit of the legislative effect of that. And so with regards to FSD and Cobra, this that’s been tough to forecast all the way through having the national emergency legislation out there. And with regards to COBRA, just the fact that people don’t have the optionality to go into COBRA multiyear after exiting a job, that changes how we essentially drive revenue off of the different communications that we make to them and also just the number of people that sign up, given the, I think, even the broader strength in the economy that maybe wasn’t expected. So those are kind of the things that kind of push those things around.
David Larsen: Okay, great. And then I think what I’m hearing also is that in terms of like the risk of a recession or the risk of a slowdown next year, you’re not seeing any of that in terms of demand. In fact, it’s kind of the exact opposite. There’s lots of demand, you’re signing up a bunch of clients. Is that right?
Jon Kessler: I mean I don’t know that our clients in the human resources department are experts at predicting recessions. But I think people are — I think it’s probably fair to say that what’s happening out there is that people are anticipating tighter conditions, whether that’s a recession or not, I don’t know. But the effect of anticipating tighter conditions is there is that they’re attentive to plan design and win-wins and things like that, that we talked about earlier in the call. So — but in terms of — when I look at the account numbers that change as a result of that are a function just of new job adds and the like, I mean, our data are moving in tandem with the national data at this point. So I think there’s nothing that would surprise you there.
David Larsen: Okay. And then I think you basically renegotiate your contracts every 3 years with your clients, which I think would imply that the yields that drive custodial revenue should continue to increase through next year, right?
Jon Kessler: I would refer back to the answer on that one to — I think it was Glenn that asked a similar question. And just — but just to say, our duration is 3, but our bigger contracts, the deposit contracts themselves, maybe 4 or 5 years. So there’s — you’re going to see quite a few of these come through over the next couple of years. And also during, obviously, the last few years, there’s been quite a bit of growth. So you need to — if you look at this, you need to go back to your reference year versus dividing today by that number.
David Larsen: Okay. And – and when you say you’ll see quite a few of these in a favorable manner, I think, is what you were saying around…
Jon Kessler: Yes.
David Larsen: Okay. And then just lastly for me. Your service gross margin obviously showed some pretty good improvement. You got as high as like, I think, 38% in 2Q of ‘22. How high can your service gross margin trend to?
Jon Kessler: We’ve talked about this in the past. I don’t — I’m not able to make like long-run predictions. What I will say is we’re targeting the total margin and particularly as we reduce the cyclicality of the other components, I think that makes a ton of sense. So I — but I do think we have some room to grow from here. I mean we ought to be able, over time, to get this number back into the 30s. It may take us a little while, but the drivers of that are going to be, first of all, particularly growth in the CDB businesses that are profitable. And then secondly, the underlying HSA account growth and then third is going to be ServiceTech where we can bring cost down. And we’ve delivered a little bit of that in this quarter and a little bit of last quarter. And heck, we do a little out each quarter. And at the end of this, we’ll have a software business, I don’t know. I’m just kidding that won’t be true, but it is an opportunity.
Operator: And our next question comes from Sandy Draper Guggenheim.
Sandy Draper: Thanks very much. Not a lot left to ask. So first, I’ll just say we’ll also echo Tyson. It’s been a pleasure working with you. Hopefully, we’ll get to cross path at some point in the future. I guess the first question, if I just do the simple math of looking at the cash per account, it’s down a touch. I know that’s just a 1-day comparison last quarter to this quarter. Just trying to think because you have much more visibility, and this sort of ties to what you’re saying, Jon, about the investments. Is there any notable change in behavior you’re seeing now versus maybe the past couple of years about the desire for people to pay themselves back versus put the money in and not reimburse themselves. That would be the first question.
Jon Kessler: Now I have to ask how many they’re going to be because after — I’m just glad Greg is already off the line to hear all these like 8 partners. No, I’m kidding, but here goes. Look, I think, first of all, it is worth noting that if you look at total assets for the quarter, this was actually a record growth period ex Q4s. I mean you’re talking about close to $1 billion in asset growth over the course of a single quarter, and that’s really good. Also, if I break it down, and I think that the short answer here is going to be that I don’t think there’s been very much difference other than the — as we talked about in an earlier question, the increased interest in investment, no pun intended. Because if you look at Q2 contributions, they’re up year-over-year exactly as you would expect.
