Andrew Boone: Thanks so much for taking my questions. I wanted to go to attach rates. The 1% sequential growth for attach rates was a low and the total number of nominal units. As we think about the 2Q to 3Q number of 15,000 was also a low recently. Can you guys just touch on any additional details you may have in terms of subscription attach rate as we think about freemium rolling through the model or maybe just anything else on retention to unpack that? Thanks so much.
Dan Wernikoff: Thanks for the question, Andrew. I’m assuming you’re talking about the net subscription ads relative to formation growth?
Andrew Boone: Correct.
Dan Wernikoff: Yes. So there’s a couple moving parts when we start to look at those numbers right now. And part of that has to do with us starting to exit the partner channels as well. It has a negative short-term impact on subscription units with a constant on the formation side that’s it sort of doesn’t overcome. So that’s really more anomalous and frankly, you’ll probably see that continue for a little bit because we’ll start to accelerate on some of the reduction in subscription units. What you’ll see offset that is a stronger ARPU, which kind of reflects the fact that they were wholesale units and they weren’t all that valuable on a revenue basis. So again, that’s part of that deliberate choice that we’re making to get out of the partner channel.
Noel Watson: Yes, and just to add an additional specific to that, Andrew, as we get into Q4 and we see that the transition on the subscription unit side kind of take larger effect related to the partner transitions, we actually expect subscription units to be down sequentially. But to Dan’s point, we see that as a – it will positively impact ARPU given the lower value economics of those units.
Andrew Boone: Thanks. And then Dan, in your prepared remarks, you talked about tests for pricing. Can you just let us know any details you may have today on how you’re thinking about that?
Dan Wernikoff: Yes, I mean, we’ve talked a lot about the premium lineup for the bulk of this year. And one of the things that the initial lineup does is it creates a lower cost transaction associated with the initial purchase. The part that we’re now circling back on is, now that we have the bulk of our customers in coming through a free SKU, do we have the right pricing on all of our subscriptions that we add on top of that initial purchase. And so there is a lot of testing going on. I mean, parts of it are on our core compliance subscriptions. Parts are still on some of those additional services that drive higher engagement post purchase as well. And I’d say that we’re still not in a heavily optimized lineup. There is – if you think about launching five products over the last couple of years and then changing the core lineup, it requires a lot of testing to get to the optimal pricing across the whole purchase of the customer.
And then on top of that, we also now do have this post formation opportunity that’s starting to emerge, which also helps us think through what should we include in the formation funnel itself. And so think about all those variables, think about the level of volume that we have of formations that come through and that’s going to be a continual journey over the next couple of quarters to make sure that we have the right lineup for all of our customers.
Andrew Boone: Thank you.
Dan Wernikoff: Yes, thanks, Andrew.
Operator: Thank you. And one moment please for our next question. Our next question will come from the line of Brent Thill of Jefferies. Your line is open.
John Byun: Hi. This is John Byun for Brent Thill. Two questions on the LZ Books. You’ve talked a little bit about that, but wondering how that launch is going in terms of traction, what kind of customers at what stage might be attaching that? And then second on the sales org, adjustment or transition, is there any way to kind of quantify on size up kind of the magnitude of the changes you’re making there? Thank you.
