Steve Daly: Yeah. I think I would say there — like everybody else, they’re being very judicious in how they’re spending their money and where they’re spending their money. The — in K-12, you’re right, there still is a lot of stimulus dollars. Only about 30% has been spent to date. There’s plenty of money out there, but they are being very thoughtful about how they’re spending that money. What we like about that is that our technology is critical infrastructure. It’s the foundation for their digital transformations. So, we feel good that — and we’ve been told that regardless of what happens to the budgets, the money that they’ve earmarked for our part of the digital transformation process is durable and they expect to be able to fund those going forward. So, we’re seeing good signal there.
David Lustberg: Okay, guys. Thanks.
Steve Daly: Thanks David.
Operator: And your final question will come from Steve Enders with Citi. Please go ahead.
Steven Enders: Hi. Thanks for taking the question. I guess, just want to follow-up on the last point around the outlook for K-12 and how you’re thinking about the opportunity at this point? And I guess, the pipeline opportunity there. I mean, does this feel like something that might kind of continue to push into 2024? Is there an opportunity as you kind of see it today for things to become a little bit more of a 2023 opportunity?
Steve Daly: The dollars have to be committed before the end of September in 2024. So, there’s enough money out there that I don’t think they’re going to wait until July of 2024 to start committing these dollars. There is a couple of things that we see going on here though, Steve. The first is that, again, they’re being thoughtful. So, they’re not just going out and spending like drunken sailors type of thing. They’re making sure that they can get a return on that investment. And there are a number of required proofs, if you will, when a school or a district invests in education technology that they have to show efficacy of what they’ve invested in, which for us, part of the investment thesis for our — for LearnPlatform was that Learn is one of those technologies that can provide evidence that the technology is working in the environment.
It’s going to be something that becomes much more top of mind, much more important. In addition, there are regulations that require proof of efficacy anyway. So, we feel good that the dollars that are earmarked for ESSER will create for us some enduring demand, not just in the spending of those dollars, but also — and then after those technologies get deployed, how does the school prove efficacy. And so, again, we feel like there’s a long-term kind of tailwind here for us, because these extra funds are coming into the system.
Steven Enders: Okay. No, that’s helpful context there. And maybe for Dale, just wanted to touch on the RPO number in the quarter. I know 4Q usually isn’t that — isn’t that big of a bookings quarter for you all. But just anything to call out there on sequential decline there. And is there kind of any FX impact or anything we should be thinking about that would be impacting the number there?
Dale Bowen: Sure. It’s a great question. We’re pleased with where our RPO landed. You may remember last quarter we signaled that it was going to come down from where we landed in Q3, in part because there’s a lot of factors that play into where RPO goes including some seasonality of contracts and timing of renewals. And there is a host of things that we’re seeing that are contributing to that. However, we’ve got great confidence in our RPO where it is now and where it’s headed over the next four or five quarters and it gives us great confidence in the 2023 guidance that we provided on this call.
Steven Enders: Okay. Great. Appreciate the questions here.
Dale Bowen: Thanks Steve.
Operator: And that will conclude today’s question-and-answer session. I would now like to turn the call back over to CEO, Steve Daly, for closing remarks.
End of Q&A:
Steve Daly: Great. Thanks operator. Thank you everybody for joining us today. So, we’re very pleased with our results, not only in Q4, but throughout the year and we are very well-positioned for stellar 2023. Our business — we’ll continue to grow with best-in-class margins and our position in the education ecosystem affords us ample opportunity for growth for years to come as we execute on our learning platform strategy. So, I just wanted to thank our customers, our employees, our partners and our investments for your support in this really important endeavor that we’re all going on together and I look forward to sharing our continued momentum with you next quarter. So, thank you very much.
Operator: And that will conclude today’s conference. Thank you for your participation and you may now disconnect.
