John Gibson: Yeah, just to add on to that, I think, again, every business has — we have a rhythm and the third quarter is a critical — that’s our selling season. And so, what the macroenvironment will be in the third quarter, fourth quarter, those are all the things we are trying to guess. I think what I would characterize it at this point in time is when we left the fourth quarter, I talked about the second half of our last fiscal year, we actually saw new sales bookings, both in Management Solutions and the PEO and Insurance accelerating. We continue to see that double-digit momentum in the first quarter, HR outsourcing, ASO and PEO, strong mid-market in the quarter, retirement is strong, digital payroll is strong. So, when we look at the demand environment, then we look at the employment environment with our index and what we are seeing the first quarter set-up to be kind of a repeat and continuation of what we saw in the second half and particularly the fourth quarter.
Now as it relates to the PEO business as we talked about the insurance is a portion of that, insurance attachment is part of the reason why we have a little bit of a wider range. What you have to determine there is, how many companies continue to offer benefits to their employees? That’s the first choice. The second choice is, how many of those employees sign up for Health Insurance, and what plans do they sign up for? Now, we are only a quarter way through that decision process, which really is already started, about 25% of the way through. What I would say at this 25% away, we are running a little bit on par, where we expected. I mean if that continues, I think that’s what gives us confidence in the back half. But again, I still got three quarters of that process left and again, I want to be predictable relative to what we should expect.
And so, we are being, I think prudently cautious in making sure that we are executing both Management Solutions, we are taking advantage of the opportunities in the marketplace, and then in the POE and Insurance, making sure we are doing what we need to do to make sure we have a successful open enrollment and drive insurance attachment.
Ashish Sabadra: That’s a great color. And maybe if I can just ask a quick follow-up question on the commentary on the PEO side on the improved insurance attach rate. Obviously, last quarter you had also talked about a leaner product and I was wondering if that’s driving better adoption or you are seeing just better adopt — demand or stronger demand for insurance product? Thanks.
John Gibson: Yeah. So, I would say that there is a multitude of things that we probably tweaked every aspect of how we approach the insurance, both in terms of analytics of what we are doing relative to targeting customers that we think can drive — we can drive value proposition there. We’ve changed the technology. We’ve changed our advisory approach, and we’ve expanded the products — choices that both employers and employees can have. We’ve improved our educational tools in that process. We got a lot more engagement with our HR advisors, with clients around that. So, I would say, across the board after what we experienced a year ago in the first quarter, we’ve looked at every aspect of it and the team has really done a great job there and just re-imagining how we need to approach this.
And again, we are only 25% of the way through, but we are seeing results from those activities. And, I do think demand for insurance, and I think it’s going to be interesting. We were very pleased with our renewals. I mean, if you read in the general press right now, you will see that there is a degree of health inflation, and when that occurs, we do typically see more customers shopping for alternatives that we think we have a good value proposition there.
Ashish Sabadra: That’s a great color. Thank you.
Operator: And we’ll take our next question from Scott Wurtzel with Wolfe Research. Your line is open.
Scott Wurtzel: Great. Good morning, guys, and thanks for taking my question. Maybe just going back to the acquisition. I’m just wondering if you could maybe give a little bit more color on the strategic rationale behind it and sort of said another way, like why now with this deal, and maybe relative to some of the other targets that you were looking at? Thanks.
Efrain Rivera: Well, I’ll bracket it in three ways. The first thing is that, as John alluded to or said earlier, the ability for small businesses to access funding — in small and medium size, I should say, access funding is important. So, we had our eyes on looking to build our capability in that area. The second thing is, acquisitions are, as you would know, they don’t always present themselves with exactly the timing which you would expect them to, and when an opportunity arises and you do what you need to do to take advantage of it. We saw an opportunity for high-quality asset and decided that it was the right time. And I would say the third is that, it’s an interesting environment for small businesses, so where access to funding opportunities is becoming more tricky given what has happened with banks and with rising interest rates.
So, we think the timing seemed to fit pretty well. And again, I don’t spend too much time. It’s a relatively modest acquisition based on our revenue side, but we think we’ve had a lot of success with our Paychex Advance acquisition, and it’s a very profitable corner of the market. And we think we can do the same thing with the company that we bought, called the [indiscernible] by the way.
