Sanjay Sharma: Thank you, Dennis. So our margin expense in Q4, that’s a reflection of our efforts towards not only managing our expenses, but our top line growth as well. And we have been very consistent with our strategy going forward as well. While expense management will continue to be our focus, our focus is shifting on how we can grow our top line. And that’s what you would see in coming quarters as well.
Crispin Love: All right. Thank, Dennis. Thanks, Sanjay. That’s all helpful. And then, Dennis, just on the $11 million of one-time expenses in the quarter, is $10 million of that in facilities and then $1 million in professional fees? Am I missing anything there?
Dennis McGonigle: I’m sorry, Crispin, there was three elements to that $11 million. One was — we wrote down a technology asset. So we had a piece of software that was in development and we found an alternative in the market that we think will serve us better going forward. So we wrote off the capitalized element of that asset in the fourth quarter because we’re not going to bring that to market. We had $4.6 million of severance expense, most of which was covered in a recent 8-K filing that we made. And then we had about $1 million of professional fees associated with — which I’d like to call it out is kind of a little more unique, the acquisition — two acquisitions we did.
Crispin Love: Okay. And then I guess, I’m just looking at the facilities, supplies and other costs line item at $27 million in the quarter. Is there anything based in there? Or is that a good run rate going forward? I’m just curious why that line item was so elevated in the quarter.
Dennis McGonigle: Yeah, that would come down because that’s where that write-off would be sitting.
Crispin Love: Right. Okay.
Dennis McGonigle: So that number will come back, I’d say, more kind of the average of last year quarter-to-quarter.
Crispin Love: Perfect. Okay. Thanks. That’s it for me. Appreciate taking my questions.
Dennis McGonigle: Yeah.
Operator: Thank you. And next, we’re going to the line for Ryan Kenny, Morgan Stanley. Please go ahead.
Ryan Kenny: Hi, good afternoon. Thanks for taking my questions.
Ryan Hicke: Hey, Ryan.
Ryan Kenny: Just wanted to dig into the net sales events in the asset management-related businesses of the Investment Advisors and Institutional Investor segments in the AMD business. So it’s been negative for a few quarters in a row. So I just wanted to understand like how much more of that we should expect going forward of the negative net new sales? Is this a good run rate? I know there’s some more client transitions left? Or should that come down over time? Thanks.
Dennis McGonigle: Yeah. I guess we’ll turn it over to Paul to kind of address the — really what happened over the past couple of quarters because we’ve had this kind of phenomenon of shift from mutual fund products as a product wrapper type program into more ETF separate advance accounts, some of the curated third-party programs we have. And then as you — we’re all aware, there is a lot of consolidation or a decent amount of advisory consolidation going on in the market, and we’ve had some advisors kind of get picked off in that process. So our — when we talk about — we quantify things in the context of revenue, and that really reflects the pricing shift in the products we offer. But I’ll let Paul kind of take it from there in terms of cash flow expectations and what we’re seeing from that perspective.
Paul Klauder: So if you look at cash flow, we did have a positive third quarter, but we had basically a flat to a little bit negative in the fourth quarter. A phenomenon that we’ve seen in the marketplace are advisors who are getting purchased by consolidators and roll-up firms, and we were not immune to that. In 2023, specifically in the last couple of quarters, we were hit with nine firms that represent $2 billion of assets that were extensively assets under management that moved off the platform. Now we have a lot of energy on strategic answers that we’re looking at to deal with this trend in the industry, including working with the aggregators, especially the friendly aggregators and selling them on our overall capabilities of technology, operations and investments.
So that certainly was a headwind that we saw in 2023. That said, our efforts in the RIA market are continuing to be bolstered. We’re very positive on that, and part of our momentum in 2024 is the goal of larger to larger RIAs because we think we have all the capabilities. We’ve historically had most RIAs between $50 million and $500 million, but we think we have all the capabilities to sell to the greater than $500 million market segment. And Eric Collin and Gabe Garcia, who is leading that effort have doubled down on resources and capabilities, and we’re optimistic there. So I don’t want to give any predictions as to what 2024 is going to look like. But we think with our strategic goals, we’re stemming the ties with advisors that are de-converting through acquisitions and then our focus on the RIA channel were positive as we move into 2024.
Ryan Kenny: Great. Thank you.
Paul Klauder: Thank you.
Operator: And next, we’ll go on to the line for Owen Lau, Oppenheimer. Please go ahead.
Owen Lau: Good afternoon and thank you for taking my questions. Ryan, I think you talked a little bit about the priorities in your prepared remarks, but could you please add a little bit more color on your strategic priorities in 2024 in a little bit more detail? And how does it help drive revenue growth this year? Thanks.
