Rahul Kanwar: I think the difference in what we expected versus where we ended up from a software license revenue was in the order of magnitude of about $20 million to 25 million in the quarter.
Peter Heckmann: Okay. But it does appear that it was concentrated within the legacy software businesses.
Rahul Kanwar: Yes, that’s right. Primarily institutional and investment management business and some impact in advent as well.
Peter Heckmann: Okay. And then just on the retirement side, you know, 15% up in the quarter, sequential acceleration. I’m sorry if I missed it, but does that reflect the go live of — of some of the large clients in the conversion pipeline?
Rahul Kanwar: Yes, it does. We’re continuing to make progress, as you know, we did win a few large deals. I want to say about 18 to 24 months ago that we’ve been working hard on implementing. And where we are right now is we have one of them fully live and another one scheduled to go live in early 2024. And you’re starting to see really the revenue benefit of that happening.
Peter Heckmann: Great. Thank you. Operator Thank you. We go next now to Andrew Schmidt at Citi.
Andrew Schmidt: Hey guys, thanks for taking my questions and welcome Brian. Brian, maybe. I could put you on the spot for a second. I know it’s little bit early, but talk about just initial observations and maybe some early priorities you have as you hit the ground here. That would be helpful. Thanks a lot.
Brian Schell: Yes. No, thanks for the question. And I would say the priorities that we have are continuing to try and build on the momentum here. As I said in my opening comments, I think that one of the things the finance group and our leadership is looking to do is, continue to enhance some of the tools that the leaders at the front lines are actually using with respect to the contracts to help make better decisions, more timely decisions. What they’re looking at around pricing, what they’re looking around implementing investment and expenses to drive future revenue growth. I think it has been important. I think the team is already — has always been focused on looking at expenses and trying to make sure that the expense level and spend, variable and fixed, adjusts in accordance with, I’ll call it, revenue outlook.
So that revenue growth is obviously very important, but so is making sure that we have an appropriate margin that we’re bringing to our shareholders. So I would say it’s continuation along those lines. I think we’ll continue to try and drive some incremental metrics to give increasing visibility to — again, to continue to help understand what’s driving the business and the strength that we see in it, that sometimes may be masked by the aggregate numbers and some of those trends. So we’ll continue to try and highlight those. And lastly, I would say on the capital allocation piece, again putting that in perspective of how we view and how we’re going to maybe be a little bit more proactive around what we’re doing with respect to that cash flow, I think we’ve indicated, like I said, a more heavier lien and allocation towards share buyback and continue to be transparent about where we think we’re going to put the capital to work.
Andrew Schmidt: Got it. Appreciate that, Brian. Very helpful. And then if I could pick up on the margin comment, the implied fourth quarter margin, pretty good progress there. It looks like, if my math is right, up at least 200 bps year-over-year. As we look ahead, can you talk about an opportunity for maybe above-trend margin expansion, just given all the opportunities you have in front of you, whether it’s digital workers, cost efficiency, obviously some top line scale hopefully, anything around that would be helpful? Thanks a lot.
