Olivier Thirot: I would just add back to a sustainable transformation. One of the criteria on the KPI we are going to continue to use and expect to improve significantly is what is called incremental conversion rate. How much of GP growth we can convert to revenue. Historically, our conversion rate was about 15%. Part of the transformation is to make sure that our incremental conversion rates in the future is significantly better than the 15% we have seen in the past.
Kevin Steinke: Okay, great. That’s very helpful. Just thinking about the current environment here in terms of the slowdown you’ve been seeing. Is it more weighted towards existing customers cutting back or if you also seeing the new business pipeline slowdown, provide kind of that mix that you’re seeing in terms of, what’s the demand trends?
Peter Quigley: Yes, Kevin, I would say in both cases, it’s not necessarily a significant impact on demand or the pipeline as much as it is a cautiousness in decision making, the volume that people are planning for, and just the overall cautiousness that leads to customers and the pipeline taking longer to develop. And that’s what we’re seeing, of course you have fluctuations depending on industry among our customers and the pipeline. But I would just say overall, there is some headwinds that people are feeling reflect – is reflected in their demand and hiring decisions.
Kevin Steinke: Okay, thank you. Just lastly, I’ll jump back in the queue. Is there kind of a cadence of the quarterly progression that we should think about in the second half in terms of just the growth and margin or is – would you expect them to be relatively similar in terms of the growth rates in margins?
Olivier Thirot: Well, I think the first gate at least financially speaking is going to be this exit rate of EBITDA margin at 3%, leaving 2023. But as Peter was saying, we are going to continue to inform you on the progress we are making beyond the outcome, which should be significant and quick improvement of EBITDA margin. And as Peter mentioned, in November, we are going to spend much more time on the growth path of this transformation.
Kevin Steinke: Okay. So when you say exit rate for 3%, does that imply like 3% for the full fourth quarter?
Olivier Thirot: Yes, it’s Q4. I would not use December to do it, because December is a specific month. So exit rate is going to be really for the entire Q4.
Kevin Steinke: All right, great, thank you.
Olivier Thirot: Thank you.
Peter Quigley: Thank you, Kevin.
Operator: [Operator Instructions] Our next question is from Mitra Ramgopal from Sidoti. Please go ahead.
Mitra Ramgopal: Yes, hi, good morning. Thanks for taking the questions.
Peter Quigley: Good morning.
Mitra Ramgopal: Hi, good morning. Olivier, first a couple of questions for you. I think in 2Q your restructuring charge was about $8 million. Just how should we think about it for the second half of the year as we – Q3, Q4 and do you expect even additional charges heading into ’24?
Olivier Thirot: On, you mean restructuring charges plus transformation charges.
Mitra Ramgopal: Yes.
Olivier Thirot: Yes. I mean, if you are seeing, but – you know already because that’s something we have disclosed in July that we have this event at the far end of July. That will create 7.5 million to 8.5 million of cost. But of course, as I said in my comments, we have further initiatives underway that would trigger additional restructuring costs of transformation costs in the course of Q3 and Q4 and potentially in the first half of next year.
