Margi Tooth: Yes. Sorry for our free cash flow positive, as we mentioned, we’ve seen some good improvement sequentially quarter-over-quarter. So I think $3.9 million benefit in terms of where we all right now in terms of cash. I think in terms of the expectation for the quarter – year-end. Sorry. We still fully expect with the rate we have flowing that we’re making good progress in Q3 and Q4 is still very much on track in terms of our goal.
Jon Block: Okay, thanks for that. And maybe the second question I might have a couple of parts, but the first is from an employee perspective, I thought we mentioned some one-time expenses. I don’t know if we 700,K or 900k intra-K was that severance and I guess if it was or if it wasn’t Darryl, can you talk about the employee count at Trupanion if that’s being curtailed. And if so where the company is making some of those changes sort of the follow-up on a different topic, it’s just more of a clarification, I think, Darryl, you said, hey, retention is getting hit a little bit from some of those lower-end plans, if you normalize for that retention would be largely unchanged, but just to be clear, your PAC is also benefiting from that, right.
You’re saying how – you’ve done a great job on pet. But those lower-end plans I believe have a lower pet acquisition costs. I just want to make sure that would be showing up in both places right to be hitting your retention but benefiting your PAC arguably. Thanks, guys.
Darryl Rawlings: Yes. Margi can answer probably, sorry, we got a echo there. The question on – sorry, that was me on my end. I’m sorry. There was 3% reduction in headcount across the company during Q2. There was some severance expense. Margi, you alluded that in her opening remarks. And the second part of it is, yes, just as a reminder, our pet cost was reduced by 6% and yet we had 23% more pets that we enrolled. During the quarter, but all pets are not created equally. So some of these pets have low ARPU and lower retention other ones have higher ARPU and higher retention. So it’s very important that we look at it in a decentralized way in spend the corresponding amount when you see that pet acquisition cost drop is dramatically you did from, it’s an evidence that we’re doing that.
Operator: Next question comes from Wilma Burdis from Raymond James. Please go ahead.
Wilma Burdis: Good evening. Maybe you could give us a little bit of color on the time period for the other business to roll off, I know you have a little bit shorter retention, then the portion opinion business – from what I’m looking at it seems like maybe starting in 2024 that would roll off over a period of three to five years. Maybe just take some time.
Wei Li: This is Wei. So I counsel for this question. So basically it’s in the prepared remarks, I gave the new guidance of the Q4 – Q3 and the full-year guidance for total revenue and the subscription revenue implies also for Q3 and Q4 other business. We have been seeing the growth has been decelerating, but still the pace of rolling off of our book. Let’s see slower than we had expected. So we’re still expecting growth from versus last year in the second half of this year and looking at 2024, there’s a lot of uncertainty, but we believe start to decline, but our model right now single digits of revenue, revenue declined for other business. And as a reminder, other this margin is usually between 2% and 3%. We do things, given the new arrangement with that it will be about 3% going forward.
But it’s still much smaller than our subscription business. The revenue projection I would say, wouldn’t impact too much of our bottom line performance. And I would say in terms of out years after 2024, I would say it’s going to be a pretty long tail based our experienced before. And also as a reminder, if they were off quicker than we expected. There will be more capital effective to our TARP capital position.
Wilma Burdis: Thank you. So I guess maybe single-digit revenue declines, but continue for 2025 and beyond. Is that how should, how I should interpret what done.
Wei Li: That’s for the 2024. I’ll be honest we haven’t really started 2025 for this other business. I do not have too much clarity on that. But I would say it’s going to be fairly slow decline over the next three to five years.
Margi Tooth: Yes. And if I can just add as well. It’s Margi. Just to echo as what you were saying, we’re expecting to be single-digit growth, if we want to be good partners, I want to make sure that from another business perspective that we’re able to support the businesses is upon and came to us support them anyway in the first place. So the roll off, obviously, it’s dependent on their funds and we’ll be here to support them. But the main thing for us is ensuring that we have sufficient benefit from that partnership in terms of the margin, which is Wei alluded is certainly increase. So we look forward to seeing that be part of our business for little longer than we anticipated. It has upside for everybody and we will continue to share changes as and when they happen.
Wilma Burdis: Okay. And then one quick one. We noticed that you broke out a new line item over the last few quarters. Pet acquisition expense for commission-based policy that was about $900 million this quarter. Could you just give a little bit of clarity on what that is and is that netted out of the pet acquisition cost of 236 or how should we think about that figure?
