Your question about how long it lasts is a great one. If you look back at what they call kind of hard and soft markets, I think they call them an insurance. Typically, the cycles are much, much shorter for the bad markets than we’ve seen over the past few years. That’s why Greg referred to it as generational, I referred to it as a fierce storm — macroeconomic storm. This has been the worst auto insurance cycle in anyone’s memory because it was such a deep, fundamentally hard thing to get out of between the COVID’s effect on driving behaviors, but also on inflation and supply chain. And including things like tough used car markets and because there weren’t enough new cars to buy. I mean it was a very tangled mess of complexity. They really had a very dramatic effect on insurance carriers and it’s taken them a long time to untangle it much longer than usual.
Usually, these cycles are more like, I don’t know, maybe a year, the down cycle then usually get several good years after that. I am not in an industry — at Insurance industry analyst, but I think if you read the analysts that follow the industry, their view is likely to be that this is — we’re likely at the beginning of a multiyear positive cycle because of all the carriers have gone through on the product side, on the footprint side and now all the rate increases they’ve had. So, we’re subject to big weather events, which are really short cycles. I think we’re — we feel like and the clients seem to be indicated that the outlook is quite positive for as they can see.
Jim Goss: Okay. Thank you. One other little myth. Someone mentioned he had heard from an agent that there are certain states unwilling to ensure certain cars because of at risk that have come up in the past couple of years. Are there — is that — are you seeing things of that nature or any other were things that would factor in any of the–?
Doug Valenti: No, it’s a good question. There are things like that in the market all the time. But nothing that fundamentally affects the trajectory, not that we would expect to fundamentally affect the trajectory now. But there’s a lot of — I mean they’re a big neighbor because of California nobody would cover home insurance, of course, they are big parts of — I mean, there’s lots and lots of stuff like that, but the overall trend of the market from here appears to be up and to the right.
Jim Goss: All right. Thanks a lot. Appreciate it.
Doug Valenti: Thank you, Jim.
Operator: Your next question comes from Jason Kreyer of Craig-Hallum. Your line is already open.
Jason Kreyer: Great. Thank you. Doug, just wanted to see if you could give us more color on the dialogue you’re getting from carriers. I know in past cycles, the resurgence of spend has been kind of driven by digital first carriers with more of the captive agencies, a little bit behind them? Are you seeing that play out now? Or are you seeing a little bit more increased spend out of both buckets?
Doug Valenti: More out of both, actually. We reviewed the auto insurance market and business with the Board recently at the last Board meeting and one of the slides showed how much more diverse the footprint was for us and by implications in terms of overall industry demand than it was last year for this quarter. and pretty dramatically so, I would note. So, we are seeing it more broad-based than we have seen in past cycles. I think that’s generally the case. But I think it’s also specific to us because we do have a bigger footprint now than we did last cycle. We have a broad — we participate much more broadly in in other parts of the digital landscape, we used to be dominantly clicks now we have clicks, calls, leads, services like QRP, things like that. So — but we appear to be seeing it and again, this is anecdotal, but we appear to be seeing it more broadly in answer to your question.
Jason Kreyer: That’s great. So, as the re-ramp continues to build, I’m just curious what you think your prospects are for taking market share over the next several months?
Doug Valenti: I think it’s good. We have not lost a share on the media side. In fact, we’ve significantly gained share on the media side through this period. We’ve recently signed very big player in media that we’re going to be adding to that already win cycle as we launch that in the next month and a half or two months. And I don’t — nobody has been able to invest in the products that expand the market and expand our footprint in that market like we have through this period because we had the wherewithal to do so. We didn’t have debt. We did have — we had positive cash flow we have or positive operating cash flow case adjusted EBITDA, if you will. And most of the other players in the market had debt and/or we’re much more deeply tied to the auto insurance cycle or how do the problems like mortgage and just did not have the capacity to do what we’ve been able to do in terms of aggressive investment through the cycle.
And we’ve invested in are things that we expect have and we’ll continue to build not just to grow the channel and grow our footprint in gene also take share. We’ve gained share, we think we’ll continue to do that.
Jason Kreyer: Just one more, if you don’t mind. You teased out some data or just some statements earlier on QRP. I know you don’t want to break out numbers or contribution. I’m just curious maybe how big you — like rate of change, how big that can become? Or at any specific point in time or you think that can be a bigger contribution and more meaningful to your fundamentals?
