Craig E. Boelte: Yeah. I mean, this quarter was down slightly. It’s typically going to be headcount. We hire ahead of the growth it’s going to be a higher headcount in the service group. We’re starting to see a few costs as it relates to international, but it’s not really moving the needle at this point. So, we haven’t guided to gross margins. We’ve always been in that 84%, 85%, 86% range. And we would expect that to be what it was similar moving forward.
Bryan Bergin: Okay. And then on the updated revenue guide for the year, did you add any incremental revenues assumptions related to the Canada entry or for Everyday?
Chad Richison: I mean, it’s going to be a small impacts this year, just because you have bookings then conversions. I mean, Everyday could add a little bit, but not going to move the number.
Craig E. Boelte: Yes, that’s not going to move the number.
Operator: Thank you. The next question will be from the line of Jason Celino with KeyBanc. Your line is now open.
Unidentified Analyst: Great. thanks. This is actually Devin on for Jason today. Thanks for taking my question. I wanted to get an update on your sales capacity, do you feel pretty good about capacity for the remainder of the year and for next year, particularly as you continue to move up market and expanding to Canada and maybe other regions down the line?
Chad Richison: Yeah. I mean, well, outside sales is rolling. I mean, we’ve got people that are selling numbers that, I mean, even one deal’s bigger than was some unsold before at Paycom. So I mean, sales just continuing to do well that our capacity is continuing to increase, continue to get stronger at staffing. And again, I’m talking about from our outside sales perspective, which sells 95% of our new business, that we bring on, a new clients that we bring on. So, we’re doing well there and, I would expect us to continue to do so.
Unidentified Analyst: Got it. No. That’s helpful. And then, just a quick follow-up. Any additional details on how would you think about what you’re getting on your effective yield for [cash health] (ph) clients just given another interest rate hike, in the past month Thank you.
Chad Richison: Yeah. I mean what we’ve said in the past and really don’t have an update on that, we typically get about $5 million annually on 0.5 basis point increase. We had $2.2 billion average daily funds held this quarter. I mean, we’re typically trying to get somewhere between 80% and 90% of the Fed funds rate. It layers in over time. It doesn’t — it’s not an immediate impact to us. We have a certain funds that are layered out longer. So that’s the impact that [rate hike] (ph) has on us.
Operator: Thank you. The next question will be from the line of Alex Zukin with Wolfe Research. Your line is now open.
Unidentified Analyst: Hey, guys. This is Ryan on for Alex. Thanks for taking the question. So, two quick ones Historically, free cash flow margin and cash conversion had been lowest in 2Q, but it came in relatively strong this quarter. So just wondering if you can unpack that strength. And then on retention, you reported 93% at the end of last year, but given the macro, any swings in that number that we should be aware of just through this first half. Thanks.
Chad Richison: I’ll take the last one first and I’ll let you handle the free cash flow margin. We report retention once a year does fluctuate throughout the year. And then we report once a year, I believe, in February, every year for the prior year. And so we don’t have any updates on the retention number right now, but we will, at the end of the year.
Craig E. Boelte: Yeah. I mean, on free cash flow came in very strong for Q2. Some of that can be timing, overall, it’s the main things that impact free cash flow are going to be CapEx and some of your tax rates on that. But yeah, we’re very happy with the way it came in at Q2, much better than last year’s Q2.
