Operator: Our next question is from Brad Reback with Stifel. Your line is now open.
Brad Reback: Great. I’ll keep it simple. Is there any ERTC revenue in 2023?
Chad Richison: Brad, I know — I mean some of the competitors have called out that top of revenue and that it was going to have an impact. Our client base are quite a bit larger than what you’re hearing from some of the competitors in terms of our client size. So I’m sure there was some. We had some people that were applying for the employee retention credit. And most of that, I think you have to file – by the first or second quarter of next year and the IRS has kind of put a moratorium on that for a period, but I would say it’s not significant.
Operator: Our next question is from Mark Marcon with Baird. Your line is now open.
Mark Marcon: Just following on, on the other questions. Thanks for taking my question. Is it possible to breakdown like what the impact was with regards to what you’re seeing in terms of these efficiencies, how much you’re seeing out of the CRR group and can you clarify what you mean by the strategic revenue decisions that you’re taking for next year? Does that mean potentially pairing some clients or not renewing them? Or what exactly does that mean? And how does that – how does strong outside sales correspond to the 11% to 12% growth?
Chad Richison: Sure. Well, the first question is, you may have a client that was used to – they’re supposed to be running 13 payrolls in a quarter. And they were running 19, and now they’re back to running 13. And so you have some of that going on with Beti as well as a lot of just the fixes. I mean it just eliminates everything. I mean perfect payroll’s a thing. New clients come on with Beti and half of their employees are doing their own payroll by the end of the first month. Our new logo sales are strong, like I said, inside sales is a cross-selling, I mean it’s been pretty weak. And that’s not going to change for a little bit. I mean we’re not going to keep trying to sell more products to a portion of the base, not using it or receiving value.
We’re going to go back in and partner with the client to ensure they’re achieving the full value available to them. And so that’s a big part of our strategy here. And I will say our strategy is related to the base, not the go-to-market.
Operator: Our next question is from Brian Schwartz with Oppenheimer.
Ari Friedman: Hi. This is Ari Friedman sitting in for Brian Schwartz. Thanks for taking my question. I guess like a question I have, can you just talk about like the – what you’re seeing just in terms of SMB and mid-market in terms of demand in comparison to last quarter and how it’s trended? Thanks.
Chad Richison: Demand remains strong. I believe that what we’re talking about is more specific to Paycom and not something that would necessarily well, I mean, be happening with the rest of our industry. I mean we’ve made a big paradigm shift and going through this. These are things that we’ve done before as we’ve gone through these types of things. And I think that we’ve stayed very dedicated, and there’s a lot of clients that we have that we continue to onboard all the new ones that, continue to get great value. And so, we’re going to stay focused on what we’re doing and also looking out for our current clients.
Ari Friedman: Thank you.
Operator: Our next question is from Joshua Reilly with Needham.
Joshua Reilly: Yes. Thanks for taking my question. Has anything changed in terms of customer retention in the last couple of quarters? And how much of an impact, if any, is that having on the Q4 and the initial 2024 guidance?
Chad Richison: Sure. So neither what I would call is our surprise in the third quarter nor our larger-than-normal adjustment for fourth quarter guide, are related to any change in our expectation for retention achievements. Said a different way, there have been no changes to our retention expectations since we gave Q3 guidance on October 1.
