Arvind Ramnani: Perfect. And does this like sort of help your win rates? Or is it at this stage? And do you think it could drive like revenue growth? Like are you able to for this at the data point.
Steve Beauchamp: It’s a good question. I think today, it’s largely driving win rates and it’s creating differentiation in the marketplace. And I think, as Toby mentioned earlier, when you’ve got such a huge TAM in front of you and a market opportunity, that’s really important to have differentiation. I think that capability can be a component of new offerings that we have. I’m not sure we see at least in the immediate future that we would charge for a separate SKU on some of these capabilities. But as we launch new products, being able to incorporate things like recommendation engine, leveraging all the data that we have across the organization, get our clients to see best practices and implement new more modern capabilities. That’s where we see the more immediate opportunity than maybe a separate monetizable products.
Arvind Ramnani: Yes, having followed Paylocity for several years now. I know even in 2018, ’19, when you introduce community, it was free and then I appreciate your patience on trying to monetize first introduced brain adoption, I monetize I think that’s a good approach. Just a couple of quick other questions. One is on this kind of employment levels, I mean, are you able to quantify how much of your growth comes from basically increased employment at existing clients? I know in the past, you have kind of outlined rate increases offset any sort of employment pressures. But are you able to quantify like over the last couple of years, how much of your growth has come from employee expansion at existing clients?
Ryan Glenn: Sure, Arv. I can take that one. I think if you think about in a normalized environment with a growing GDP, you may get 1 point, maybe 2 in a normal period with client workforce levels. Obviously, over the last 3 years or so, you’ve seen significant movements both ways. I think if you anchor back to the pandemic, we talked about up to a double-digit impact on recurring revenue in fiscal ’20 that bled over into fiscal ’21. And then again, I think if you look at where we were from a spring of ’21 all the way towards the summer of 2022, we saw nearly every single month sequential improvements. And as we talked about each of those quarters, that has been a reasonable tailwind and you’ve seen outsized recurring and total revenue growth over that period of time.
To Toby’s point earlier, as you think about the back half of the fiscal year, year-over-year, there’s still a little bit of a tailwind here in the third quarter. As you get to the fourth quarter, I think we’ve really fully anniversaried all of the client workforce levels improvements that we’ve seen over the last handful of years. And you get back to that kind of low 20s or so recurring revenue growth. And as we sit here and think about fiscal ’24, continue to have a lot of confidence around go-to-market motion and our ability to continue to drive 20% plus as we get back to that more normalized employment environment.
Operator: Our next question comes from the line of Alex Zukin with Wolfe Research.
