Michael Connors: Yes. I mean, think about our recurring revenue growth has been double digits now for some time. Ventana also the same way. But importantly what we think it does is it opens up a whole new set of client base 40 new clients that we do not have in the ISG franchise today. And what we can do with those 40 clients over the next year or two, we think is very quite healthy. So there’s a lot of reasons why we were interested. And importantly Mark Smith, the CEO very well respected in the industry and he has a team of a couple of dozen analysts that we are very strong on.
Vincent Colicchio: Based on my first question, it seems like you can have some organic growth maybe low, but organic growth next year. Just curious if you could help what Ventana could add to that in percentage terms?
Michael Connors: Well, I think about it, you should think about it in the 100 to 150 basis points.
Vincent Colicchio: Okay. That’s very helpful. And your pipeline you said is as strong as it was in January. So that’s a very good sign obviously. Wondering if there’s been — in the pipeline, any cancellations or it’s just purely delays?
Michael Connors: Ours are delays. We haven’t had anybody stop us, but we have had stretch this out. We’ve had some things move to start Phase 2 into January versus November. So that’s what we are seeing. So that’s why we’re pretty confident on 2024. We’ll see how the pace moves. But with the demand environment and our pipeline the way it is, we feel good about 2024.
Vincent Colicchio: And then one last question. Are you seeing any changes in pricing pressures or better term negotiations right now given the environment?
Michael Connors: That’s a good question. I think pricing is a little stronger, not stronger in terms of price but stronger in terms of negotiation. Again in this environment I think everybody wants to get a deal. And so I would say pricing is not we don’t have the premium pricing capacity at the moment that we might have had before this macro took hold Vince.
Vincent Colicchio: Thanks, Mike.
Michael Connors: Thank you. Good to talk to you.
Vincent Colicchio: Yes, agreed.
Operator: And next we’ll move to Joe Gomes at NOBLE Capital Markets.
Josh Zoepfel: Hi. Good morning, guys. This is Josh Zoepfel for Joe Gomes.
Michael Connors: Hey, Josh.
Josh Zoepfel: I want to say congrats on the Ventana acquisition. I kind of wanted to just talk about that real quick obviously. I just want to see if you guys can provide any color just on the terms of the acquisition and you guys have been talking to clients just regarding any crossover services you guys mentioned in the call.
Michael Connors: Yes. So look like we do in all of our acquisitions we paid a little bit of cash upfront and then an earn out over time with a little bit of stock. The cash upfront think about it was not large. Think about it in the $1 million range. But the crossover is what is very exciting for us. As I mentioned earlier they bring over 40 brand-new clients to ISG, we had zero revenue with. These are all big names in the software industry. So not only will we be able to inform them with a broader array of research products and services, but we are able to bring the whole portfolio of ISG products and services to these large companies because there’s relationships there. So as I mentioned earlier I think over the next couple of years this could benefit us tremendously with these new client assets.
Josh Zoepfel: Okay. Great. And just kind of looking at the new operating income net income. Obviously revenue came down a little bit lower than guidance and the operating income is — that income were kind of down year-over-year. Can you guys just kind of provide a little bit of color on the how that came to be?
Michael Sherrick: Yes. I mean to your point, we saw a squeeze as we went down the operating income. The biggest piece is the shift in the direct costs that you see which were I think up about $3 million on a year-on-year basis with some severance in that number in the operating income number of about $700,000 that wasn’t there last year which is one of the bigger impacts. Those are really the two biggest things to get you down to the operating income level.
Josh Zoepfel: Okay. Great. And then lastly just looking at the Asia Pacific segment you were talking about these double-digit growth here earlier in the year but now it’s down this quarter and it’s kind of flat in the second quarter. Can you just kind of provide a little more detail about what kind of happening in that market?
Michael Connors: Yes. Look, I think, our Asia Pacific market is a great market for us. And I’ve said this I think over the last few years at times there’ll be a little peaks and valleys and it’s driven primarily by government spending at its pace. I mean we just won a very large contract with the Australian Taxation Office they call it ATO. A great example of that. Those things can start accelerate or delay and this one is delayed by a few months. So they were up 3% on an operating basis. We do have some FX headwind in that market and we expect that to still have a headwind during the fourth quarter. But that overall market for us is normally kind of a double-digit driver of growth over time and we see no reason that can’t continue in 2024 and beyond.
Josh Zoepfel: Okay. That’s it from. Congrats, guys.
Michael Connors: Thanks, Josh.
Operator: And I’m showing no further questions. I’ll turn the call back to Mike Connors for his closing remarks.
