Scott Berg: Excellent. Joe, I am marking on the calendar. I look forward to the follow-up. I appreciate you on that. Congrats and talk to you very soon.
Joe Walsh: I know you did. I know you wrote it down.
Operator: Your next question comes from the line of Patrick Schulz from Baird. Your line is open.
Patrick Schulz: Hey. Thanks. Good morning, everyone. Appreciate you taking my question. Just — I mean, you guys talk a lot about the SaaS business. I appreciate the color you provided in the prepared remarks around both growth and ARPU. Just wanted to dig into this a little bit more. So ARPU growth decelerated again this quarter. So curious to hear more about the customer buying patterns and maybe what has changed since last quarter, excuse me. Are you guys seeing a greater impact on — from the macro on spending or customers are slower to upgrades? So just a color around that would be helpful.
Joe Walsh: Yeah. I am going to drive you a little crazy here with — like feedback right from the Street. We did and I could see it in the last earnings call that we had and in some of the investment conferences we have done over the last few months, that we definitely saw in the kind of the first half a little bit of more cautious behavior on the part of our small businesses. They tended to be a little bit more cautious about making a purchase. They tended to think in terms of savings and value and spending less. And on our good, better, best, we definitely saw a little bit of movement for people buying the good as opposed to the better or the best. And we saw that in our data. We saw that in the average new sale that came in.
We saw that in caution to add our add-ons. People are saying, well, let me see if I can get along for a little while without it, I will think about it later. So people were a little bit more cautious for sure. Now here’s the lightning bolt. I was with the wholesale leadership team last week talking about this topic and they agree that we are seeing that lift. We are seeing that begin to change. Just in the conversations, the sort of seat of the pants feel, the small business morale and expectations about what the coming months and year look like are better now than they have been over the last nine months or so. People are seeing the headlines and the sort of the end or nearing the end of the interest rate tightening cycle, they are seeing inflation backing off, their supply chains have improved, in some cases, for a small business is somewhat better than it was.
It’s not perfect, but it’s definitely better than it was. And so the small — you heard it here first. The small business morale meter of our sales organization has definitely picked up more towards the green in the very — I am talking about it in the recent weeks literally, says that yet, but that’s definitely the case. I spent some time yesterday just talking to customers. I talked to customers every week. I met with half price hothubs yesterday, who has a Business Center, our main piece of software, our CRM and they added a few months ago a Marketing Center and they are actively running campaigns on it. There’s a very, very steady business owner. Actually, I was meeting with the GM, his name is Jim, got a tech background at Toshiba, really understands.
