David Foss: Yes, JD. I would say the competitive environment is probably the best it’s been for quite a while. It’s not that, as I said before, it’s not that people are rushing into the door at Jack Henry and, say, let me in, I want to sign a – I can sign the contract, but we certainly saw no negative impacts during all the flurry of activity here back-in March with the shutdowns of some of those specialized regional banks that did not slow us down at all. I don’t know that I would attribute a pickup in sales activity to anything to do with that. What I think is driving this is, and we just published our benchmark survey a month ago or so, and it was very clear in that survey, which by the way available online on jackhenry.com, it was very clear in that survey that customers today are looking for technology to help with revenue growth, deposit growth, and efficiency.
Those are the three, by far, the three top areas of concern. Well, if you’re looking to grow revenue, meaning deposit – or deposit, sorry, it was deposit growth, loan growth, and efficiency. If you’re looking to grow deposits, you’re not hoping that people will come into your branch and open a new account, they’re going to do that online. How do you do that? Technology from Jack Henry. If you’re looking to grow a loan volume in the commercial lending space are these small-business borrowers wanting to drive to your branch and sit down and talk, you know, they’re looking online for those funding sources? Jack Henry provides that technology. If you’re looking for efficiency in the back-office, is that just process re-engineering, it might be, but oftentimes process re-engineering involves technology.
We have those tools. And so given those three major focuses for CEOs today, Bank and Credit Union, Jack Henry provides solutions to all of those problems that they’re facing. And as I mentioned earlier, we are known in our space as the most focused on these concerns that our customers have. We only focus on serving financial institutions in the domestic US market and we have tied that together with the reputation for service and for being a great partner. I think all of those things together are what’s driving the key interest in Jack Henry. But then as you point out, the competitive environment today, probably, better than it’s been in a very long-time and we’re taking advantage of that as much as we can.
John Davis: Okay. Mimi, one final question, just to follow up on Jason’s kind of free cash flow. So if I’m hearing, I think what you’re trying to say is, near-term, probably closer to that 60% ish level that you’ve guided for ’24, but over time, maybe we get back closer to the 85% that ’23 would have been ex-tax and kind of what other time items, is that the right way to kind of think about cash flow over the next several years?
Mimi Carsley: I think that’s a reasonable approach to thinking about it.
John Davis: Okay, all right. Thanks for all the color.
Operator: Next question will come from Dominick Gabriele with Oppenheimer. You may now go ahead.
Dominick Gabriele: Hi, great. Good morning, everybody. I was just curious if we could dive a little bit more into the employee cost conversation. And if you’re seeing, if you could kind of pick apart existing employee cost increases versus new higher employee cost increases. And which type of positions are putting pressure, when we think about SG&A expense as a percentage of adjusted revenue, any color on there would be really helpful and then I just have a follow-up. Thanks so much.
