Cory Carpenter: Thanks for your answer.
Pat Thompson: And Cory, probably the one thing I would add on that is, I think there is still a bit of uncertainty around leads and kind of outbound dialing and whether the 48 hour rule is applicable for that. The thing I would say is that leads for us in the Medicare space are a very small portion of our overall business, and so we’re still waiting on clarification of that and we’ll see how it shakes out, but it shouldn’t have a big impact on us either way.
Cory Carpenter: Okay. Thank you both.
Steve Yi: Thanks, Cory.
Operator: Your next question comes from the line of Michael Graham with Canaccord Genuity. Your line is open.
Michael Graham: Hey guys, thank you. I just wanted to ask about the P&C vertical. I know you mentioned you felt it was going to be weak for the balance of the year. And I just wanted to ask if you had any reason for optimism for the beginning of next year. Is there anything going on just maybe a little more color there? And then, related to that, I just wanted to see if you could share anything about how this downturn is impacting your ability or your focus on like product development and innovation. Is it giving you more time to kind of get ready for the upturn or are you resource constrained, I guess, and maybe not able to kind of invest as much as you want? Just would be interested in how you’re kind of handling this from a long-term planning perspective?
Steve Yi: Yes, absolutely. So I think there’s a relatively short answer to the first question, which is not much has changed with regard to our sentiment since the last time we talked. I think as you’re seeing, and I’ll just echo this, right, which is it just continues to be a really challenging underwriting environment. I mean, you’re seeing some good signs used car pricing, for example, has stabilized. You’re seeing some of the states that were slow to approve rates now approving larger rate increases. For example, I think you just saw that Allstate has filed for a 35% increase in California. And so you’re starting to see some good signs, but overall, as you’ve been seeing from actually a lot of the carriers releases that happened today, as well as the monthly reports that have been coming out over the last few months, that the underwriting environment or the claim cost inflation has remained persistently high.
So really no amendment to our perspective on when the broad-based recovery of the P&C market will happen. Certainly I don’t – we don’t think it’s going to happen this year. And so now pivoting to the second part of your question it’s a great question. I think that overall the carriers that focus on efficiency has enabled us to really make headway with a lot of product development efforts to extract greater efficiency from this channel. And so, one obvious example is working with our carrier partners who are buyers who also then monetize non-converting traffic. And so in a time like this, when every marketing dollar matters, right? I think that there’s been great adoption or strong adoption on the part of carriers to actually this advertising program to help recoup the money that they’re spending to get customers to their site.
And so, that’s not necessarily innovation, that’s just certainly an adoption of an innovative business model that we’ve had since our inception. But what it signals is that the carriers are very open to ideas to expect greater efficiencies from their marketing. And that makes it a ripe environment for us to be able to innovate and iterate with the partners to create new products, new implementations, et cetera, so that we can extract greater efficiencies going into the soft market period. And so overall because our innovation is also based on just iterative approaches with our partners, right, and not one big initiative that we invest a lot of money into, it’s just not something that’s required in our space. What we’ve done is we’ve been able to retain the capabilities to maintain this kind of innovation.
