Matt Ehrlichman: A related note just for understanding and there’s a question on not being profitable in the first half of the year and then profitable in the second half of the year. It really comes down to your non-renew policies at the point of renewal for those customers and for the customers that we continue forward with the vast majority we continue forward with, you also get the price increase from those customers at the renewal. And so what happens is, over the course of the first half of the year, we are in the process of non-renewing those unprofitable policies, but you do have to carry some of that lack of profit during the first half of the year. You also at the point of renewal, we now get the benefit in the second half of the year from all those price increases that go and €“ that have been going into effect over the course of the last quarter or two and will go into the quarter over the €“ in the place over the course of this next quarter or two.
That really does make a substantial impact to the P&L and helps us drive to profitability in the second half of the year and ongoing.
Cory Carpenter: Thank you.
Lois Perkins: Thank you. Over to Josh from Cantor.
Josh Siegler: Yes. Hi, everyone. Good afternoon. Thanks for taking my question. Matt, you actually just touched on it, but I’d love if we could dive a little bit deeper on providing some more color on the actual rollouts of these rate increases or if you can talk about specific markets. When do you expect these to start fully earning into the book?
Matt Ehrlichman: Adam, do you want to provide a little detail and a little more color from what €“ in addition, what I just provided?
Adam Kornick: Yes, so they, as the simplest way of think about it is they take 12 months. So once we have them approved and programmed and in market at the next renewal €“ any new customer that comes in will pay that price and any renewal consumer will see that price at their renewable. And so that’s by state. So in some states like Texas, we had three price changes. South Carolina, for example, we had one. So there’s some ins and outs, but essentially it’s over the 12 months from when we file the increases. So, we’re seeing some benefit of them already, but it really takes a full 12 months to see a 100%.
Josh Siegler: Understood. And then on the software side, can you elaborate a little more on how you plan on expanding your go-to-market strategy in 2023 to capture some more software customers?
Matt Ehrlichman: Sure. We are still very focused on growing our Vertical Software business. One of the things that I would highlight is, we’ve had some success rolling out some new modules, in particular in the inspection space and in the title space. And those give us new opportunities to go back to customers. It also gives us opportunities to drive more value per customer. And so we continue to stay focused. There’s a little bit of headwind just because a lot of our businesses are impacted by the slowdown in the housing market. And that is something that we continue to work with them every day on. But I would say the main focus is rolling out new modules and continuing go after the core verticals we’re focused on.
Josh Siegler: Understood. Thank you very much.
Lois Perkins: Great, thank you. Next we have John from Stephens.
