Operator: Our next question is from Steve Enders with Citi.
Steve Enders: Hi great. Thanks for taking question here. Maybe just I guess, follow-on to the last question. I mean, it seems like gross retention hasn’t changed, but it’s more of a view of the net retention dynamics. I guess, first of all, is that the right way to be thinking about it even for next year as we think about that low teens guide? And I guess, any way to like quantify the change in net retention that you’re kind of talking about here?
Chad Richison: Sure. So, we report gross retention once a year in February. As I’ve said before, we measure retention throughout the year. It’s usually strongest in the fourth quarter. And so in February, we’ll give our gross retention number. When you’re looking at retention of revenue specific to a client that is using the Paycom system, if they’re a new client, that revenue retention remains strong and specific to that one client, because they were new. It’s not something we had previously. If they were a current client, as we transition them to Beti that does impact their future billing with us. And so, absolutely, as they continue to get great value, it is – a lot of that value is reflected in reduced billing. I mean I would say from a customer perspective, that’s a smaller portion of the overall value that, they receive for Beti.
But I mean, look, the only people that went in the old model is the payroll company and whoever is getting the accolades for fixing all the errors. I mean the employee and the business loses. And so, we’re continuing to work with our clients in that – on that.
Operator: Our next question is from Siti Panigrahi with Mizuho. Your line is now open.
Siti Panigrahi: Thanks for taking my question. Chad, what I understood that Beti now seems like cannibalizing your services revenue. But have you thought about the incremental revenue that you could get from Beti or even raising pricing? I understand you even did it for free. Have you thought about any changes strategically, to offset some of this services revenue coming from your unscheduled payroll?
Chad Richison: Yes. I mean I will tell you right now, I’m focused on the client value and the differential between what they’re paying and what they’re actually achieving. And I’ve kind of been saying it for a while, we’ve got the early adopters, the late adopters. I mean, Beti rollout to new clients was revolutionary. I mean our go-to-market is continuing to be unchanged on the health indexes for that group. And by that, I mean the usage, how many employees are using it, manager on the go, everything across the board. They’re very strong. Beti rollout to our current client base, I mean it was heavily nuanced. And it’s not Beti’s fault. Beti’s the way to do payroll. People may need some time to see the value, and I get it. But I mean Beti is still the right way.
Operator: Our next question is from Bryan Bergin with TD Cowen.
Bryan Bergin: Hi guys. Thank you. I’m just trying to unpack this 2024 early growth view. And if I just think about how we understood your growth algo before, I guess in round numbers, if normal growth was around 20%, we figured 15 – 75% of the 20 points would have been new logo-driven. It sounds like there’s demand there, but that’s – there’s a pretty sharp disconnect versus the 10% to 12%. So just can you help us with this?
Chad Richison: Sure. I mean, new business sales as well as cross-selling within our base has always been a mitigating factor to any type of transition shift, we make like this. And again, new business sales remained strong. In fact, most of the calls we get in is about Beti. We’ve got our first enterprise rep and they’re only targeting deals that have greater than 25,000 employees. Its current rep to Paycom. And they’ve got plenty of leads. And so, it’s a paradigm shift that we’ve been making and, but as far as the go-to-market and the new business logos that we’re on-boarding, I mean we’re not having issues with that, and we’re not looking to make changes in regards to that.
