Ian Goodkind: Yes. Josh, I’ll take that one too. Dividing that part there is definitely mutedness on the education. When I look at what that upsell was kind of lapping last year, that was definitely depressed. I mean there was definitely an impact also on commercial, but again, on the commercial side, that’s where we’re selling education. That’s why you see actually our average ASP go up over the quarter. John, anything to add to that?
John Strosahl: Yes. I guess the only thing would be that not only us, but IDC and others believe that the refresh cycle for education is due within the next – within 2024 timeframe, probably mid-2024 timeframe. I mean those kiddos that have the iPads are not going to have that same iPad forever. So when that refresh happens, we’ve seen more devices go toward Apple, and that obviously helps our install base.
Joshua Reilly: Got it. Thanks guys.
Operator: [Operator Instructions] And our next question comes from the line of Raimo Lenschow from Barclays. Your question, please.
Unidentified Analyst: Hey. This is Isaac on for Raimo. Thanks for taking the question. One thing you guys have highlighted over the last few quarters is leaning on your partners a little bit more and building out this channel. Can you speak to the progress between this quarter and last quarter that you’ve made here so far and what you’re seeing with customers as a result of this?
John Strosahl: Yes. Thanks, Isaac. Tell, Raimo, hi. I just mentioned, we just talked about the dataJAR acquisition. It really helped enable the MSP partners, and we’re seeing good growth in that area as well. We continue to work with our channel organization. We’ve invested in that to get more business from the channel versus just through the channel to help them create some of that demand. That’s having traction as well. We’re moving our sales enablement to that – in that direction as well to get those efficiencies. And some of the technology endeavors that we have on our side internally are also going to enable that channel partner, such as a partner program, a channel partner portal where they can register their own deals and it takes a more direct – a direct salespeople that they don’t have to be included in that loop.
And so more channel led deals. We’ve expanded our channel, we’ve focused on some security channel partners as well, and we’ve seen the increase year-over-year in the amount of business going through our channel partners.
Unidentified Analyst: Great. That’s really helpful. Thanks. And then for Ian, on cash flow, should we think about this move to annual billings being the norm moving forward. Or is Q3 more of an anomaly versus what we should expect to see in the future?
Ian Goodkind: Yes. Isaac, thanks for the question. It’s interesting. We looked at the top 9 billing deals within the quarter, and when we looked at those eight of those nine moved from upfront payments to annual payments. And we are talking about this in this economy, yes, it’s becoming more and more common to, for companies to hold their cash, interest rates are good. And so does this – is this shift rate for now as it continue. I think this kind of a one-time shift and what’s going to drive our unlevered free cash flows as we move forward is continued profitability. This year you saw we delivered based on the midpoint of our guidance, we’re delivering 250 basis points more in profitability this year and next year we’re saying that we’ll have more profitability in 2024 versus 2023. And I think that’s the key that we should be thinking about as we move forward.
Unidentified Analyst: Great. Thank you.
Operator: [Operator Instructions] And our next question comes from the line of DJ Hynes from Canaccord Genuity. Your question, please.
Luke Morison: Hey. This is Luke on for DJ. Thank you for taking the question. So as mentioned, Apple has, of course, a big refresh cycle coming up next year in 2024. Could you just help us think through how correlated your own business performance is with Mac shipments there? Whether there’s a lag between demand for those products and your own success and just generally how that might flow through to your business next year and beyond?
