Operator: Thank you. And one moment for our next question. Our next question comes from the line of Ryan Lynch with KBW. Your line is open. Please go ahead.
Ryan Lynch: Hi, good morning. I just have one question. You talked about on one hand kind of big picture, you’re cautious given the dynamics of inflation and shift in monetary policy and how that impacts growth. And on the other hand, you talked about your portfolio being mostly in software business with high variable cost structures and pricing power. So I’m just curious, as you study your portfolio and monitor it closely at this kind of current changing dynamic environment, what are some of the key metrics or trends that you guys are monitoring? And is there anything that you guys are seeing thus far that is sort of a concerning trend?
Joshua Easterly: No. So I think revenue growth was like 7% for the quarter. We obviously look at revenue growth on an annualized basis. So revenue growth has most definitely slowed, although still positive. We look at things such as both margin, churn, customer acquisition costs. I would say on the churn side, flat quarter-over-quarter. We grew in the customer acquisition cost by a little bit. But the portfolio, I think, has is in pretty good shape. And by the way, people talk about things in averages. It’s kind of a long way to think about it because you’re kind of stuck with the tails. And so I think when you look at our portfolio and look at the tails, we feel pretty good that there’s no significant tails. But Bo, do you have anything to add on that?
Bo Stanley: The only thing I would add is we also look at bookings. This is an indicative for future revenue growth. We saw a real demand obstruction in Q3 and we’re closely monitoring Q4 across our portfolio, especially across the business services side. Early returns on the bookings across the portfolio has been actually relatively strong in Q4. Now there’s a question if that was just a lot of pull-through demand that people are trying to get their budgets spent this year. But that was — the early indications are pretty positive on the bookings side across the portfolio in Q4.
Ryan Lynch: Okay. That’s good to hear. The other — just on that point, have you seen — I guess, has your software companies have base started to — I guess if the fundamentals are fine, maybe this is not a concern. But have they started to reduce those fixed charges in their business? So we’ve obviously seen a lot of layoffs happening in the public software companies, which obviously shows the strength of the business. Has your portfolio company started to make those shifts yet? Or is the business performing well enough that, that’s not really been an impact?
Joshua Easterly: Yes. I think in the tail, we have some that are starting to look at their costs, we like that and encourage that. Look, I think if you think about the environment we’re in, post-COVID, up until last year in a zero rate environment, everything kind of economically hurdled. And so you can make the math work for anything. And so there was a lot of dollar spent and investments made that should have probably not been made across both public and private markets, both on the investment side and inside companies. And so I think on the margin, you’re seeing a little bit of people looking at their cost structure, obviously, not the levels that you see in big tech, but most definitely — and that’s a sign of good management team.
Bo Stanley: So trying to get more efficient. We would expect that. The great thing about the businesses. They have a very terrible business model.
Ryan Lynch: Okay. That’s all for me this morning. I appreciate it.
Joshua Easterly: Ryan, just on one topic, which I think you did hit on a little bit, which is, I think we talked about script, but I think the space gets — I think people get wrong which is software businesses might have higher financial leverage, but they have less fixed charges given no CapEx spend. And so you kind of have to look at leverage in an EBIT basis or an EBITDA minus CapEx basis or operating cash flow minus CapEx. And when you look at that metric, I think those businesses have — are on a leverage basis or in line or less than like the industrial space or specialty chemical successor. So I think you have to burden cash flow by all fixed charges, just not fixed charges related to financial leverage.
Ryan Lynch: Got you. Understand the point. I appreciate the time today.
Joshua Easterly: Thank you.
Operator: Thank you. And one moment for our next question. And our next question comes from the line of Robert Dodd with Raymond James. Your line is open. Please go ahead.
Robert Dodd: Hi, everyone. I’ve got two questions, if I can. The first one is on — it goes back to the guidance and kind of follow up to Mark Hughes, and your answer to that. I mean — so the guidance embeds $0.22. I mean if look back the lowest four-quarter period you guys have ever had was 35, which still 50% higher than the 22. And you’ve only had three quarters in your history of less than five, right? So is it that you’re being extremely conservative? Or is your view that there’s a high risk that 2020 — the market in 2023 is even more disrupted than it was in in ’22, which case very low activity levels would make sense? So is it a market view that’s informing that? Or is it just being very conservative?
