John Gibson: Yes. I think Daniel, I think, our position has changed on this. I think the market conditions are changing and have changed and I think we’re going to continually be on the lookout for opportunities that accelerate our position from an HR leader and the technology leader and continue to position us as the leading digital HR human capital management provider. So I would say some — we’ve seen some valuations starting to come down. I’m sure the recent disruptions in the financial markets may create additional opportunities. And as Efrain said, we stand ready if the right opportunity comes around to pull the trigger. It’s not that we haven’t wanted to do something but we also are not going to overpay for something.
So we’re going to be — you’re going to see the same financial discipline you’ve continued to see from Paychex. What we believe that the market conditions are more conducive to us moving forward on the M&A front, but we’ll see if that actually transpires.
Operator: Thank you. Our next question comes from Samad Samana with Jeffries.
Samad Samana: Maybe one, just as I think about that comment about the number of new customers coming through strategic partnerships, how should we think about maybe how that impacts kind of customer acquisition costs those tend to be slightly larger, smaller, more profitable, less profitable? How should we think about where you’re acquiring the customers from and what the impact of that is to the financials?
John Gibson: So I wouldn’t think anything about it. I would just really more commenting that’s been Paychex for 50 years. Over 50% of our new clients have always come from strategic alliances we have. We’re a respected partner with the association is been the CPAs. And so they’ve always been a big source of ours. It doesn’t do anything to our cost of acquisition. I just think they tilted certainly during the selling season, we saw a good uptick in how they were referring Paychex over other options that they have. That was my comment.
Samad Samana: Okay. Great. And then as we think about the bookings in the quarter, anything to call out between the different kind of customer sizes so think about it as very down market and maybe more micro customers versus your average customer size. Just any trends or pockets of strength or weakness?
John Gibson: Well, actually, what I would say is we have good strength. I think, across the board. And actually, what I would tell you is that we actually saw a little more strength up market, not just the small start-up, 1s and 2s and on the digital side, which is during the pandemic, that’s where we saw a lot of growth. We know business starts through the roof crazy levels they’ve subsided that they’re still at high levels in comparison to pre-pandemic. So at that time, when all these start-ups were happening, also, we do a lot of managed payrolls, insure payrolls. So as you can imagine, a lot of people were hiring household staff during the pandemic. We saw a lot of escalation in the very micro end of that space. I would say that’s balanced out. It’s gotten back to a more balanced world and what we saw in the third quarter was strength in the more traditional segments for Paychex.
Operator: Thank you. Our next question comes from Bryan Bergin with TD Cowen.
