Nat Schindler: Great. Thank you. And I love that you used I don’t know, as an answer, because that’s the only honest one.
Paul Hennessy: Yes.
Operator: Thank you. And one moment for our next question. And our next question comes from the line of Nick Deflas with Red Burn. Your line is open. Please go ahead.
Nick Deflas: Yes. Thanks very much indeed. Just a quick question, two actually. As we think about the impact Pond5 on enterprise and E-commerce, then if you can give us any stare on that? Thanks very much for the organic figure. It’s one of the questions earlier. And the second question is just on the subscriber numbers being down a little bit versus Q3. You took around that and how you expect to return or what timeframe you expect to return E-commerce to growth? Thanks very much.
Paul Hennessy: Sure. So just with respect to Pond5. Pond5 at the time of the acquisition would have been about 3% of the revenue of the business. So that’s sort of the annual contribution. That business is a little bit more heavily tilted towards E-com, than enterprise from a revenue distribution. So, a simple back of the envelope way to think about it would be a 2% contribution to the E-commerce business and a 1% contribution to the enterprise business. I’m sorry, what was the second part of your question?
Nick Deflas: The second part of the question was just on subscribers. So 586 in the fourth quarter, I think the figure in the third quarter was 607. So, what’s going on there in terms of the decline? And when do you think you’ll be turning that around?
Paul Hennessy: Yes. I think, the subscriber decline is really — the year-over-year, there’s obviously very significant sequential — year-over-year, very significant subscriber growth. There is a quarterly sequential subscriber decline, the subscriber count is largely driven by our E-commerce business. And so, some of the weakness that we’ve seen in Europe has really been the impetus for the subscriber decline. But one of the things you’ll also notice is, if you look at subscriber revenues, subscriber revenues were up 9%, year-over-year, and the subscriber revenue number also takes into account the subscribers we have in our enterprise business. And the subscriber bookings and our enterprise business were up more than 20% year-on-year.
And so, you have an interesting phenomenon where you have smaller subscribers, that were sequentially as a result of Europe, but you also have subscriber revenues that have been very, very strong. And that’s really as a result of some of the larger subscribers that exist in our enterprise business. So an interesting disparity between the two reporting channels, vis-Ã -vis our subscribers.
Nick Deflas: Do you think that do you have a timeframe, you think that this has an economic impact in Europe particularly, that will turn around in the second half of the year? How do you think about that?
Paul Hennessy: So, we’re being conservative at this point in time. I think, as Paul mentioned, we’re not baking into our guidance any kind of a return to growth in our E-commerce business this year itself. We’d rather take a bit of a wait and see attitude on that. Seemed multiple months of trends moving in the right direction, in particular, in Europe, to sort of to make that call. But things certainly did deteriorate from the third quarter to the fourth quarter. And so, we’re sort of baking that in and carrying that forward. And we’re going to continue to focus on doing what we can do in terms of improving the value for our customers, and growing our E-commerce platform. We’re bringing in the right talent, the right tools, and really taking the right marketing strategies to be able to grow that business.
Nick Deflas: That’s great. Thanks very much indeed.
Paul Hennessy: Thank you.
Operator: Thank you. And I would like to hand the conference back over to Paul Hennessy, for any closing remarks.
Paul Hennessy: Great. Thanks. We want to express our gratitude to our customers, contributors, and especially our employees. For those of you on the call, thanks for joining. This ends all the content for today’s call.
Operator: This concludes today’s conference call. Thank you for participating You may now disconnect.
