Brian Miller: Yes. Clarke, I think it’s more the latter. So it’s more of that timing. So good bookings, it could be as much as a year ago or longer, that — where we signed new SaaS deals that some of those are now more fully reflected in the revenue run rate as well as flips. So obviously, the pace of flips has been accelerating over the last couple of years, continues to accelerate. But again, from the time — the numbers we announced each quarter, the contract signed for flips this quarter, so that revenue uplift shifting from maintenance to SaaS, typically, call it, a 1.7x multiple, there’s a lag from that. So the flips we signed last year or last quarter or the quarter before, some of those are now seeing the revenue uplift.
So there’s just sort of a lag from — which is different than some SaaS companies, that lag from the time of contract signed to the time that those revenues start to hit our income statement. So I think that’s more of that acceleration. And as we continue to increase the pace of flips and grow — move more of the new business to SaaS, you’ll continue to see that accelerate, although with a lag.
Clarke Jeffries: Thank you very much.
Operator: Thank you for your question. Our next question is from the line of Gabriela Borges with Goldman Sachs. Your line is live.
Kelly Valenti: Hi. This is Kelly Valenti on for Gabriela. One for Mobi [ph]. Last quarter, you made very specific comments on RFP and demo activity at or above pre-COVID highs, while it sounds like top of funnel remains strong. What are you seeing in the back half of this year compared to that dynamic that you were seeing in the first half? And then are there any idiosyncracies of the government end market making you more or less bullish on RFP and demo activity next year?
Lynn Moore: Yeah. Thanks, Kelly. I would say it’s been a strong year. And I would say we characterize that in the first half of the year is very strong. And I would say it’s — right now, it’s steady at that pace. Overall, the markets just seem healthy. The budgets are still strong. The activity is strong and our win rates are good. So I don’t see any real meaningful change across our business lines from comments we’ve made in the first couple of quarters.
Operator: Thank you for your question. [Operator Instructions] Our next question is from the line of David Unger with Wells Fargo. Your line is live.
David Unger: Great. Thank you guys. So it’s great to see the net leverage coming down to 1.25 times EBITDA. Can you just remind us how you guys like to think about that leverage band and maybe some color around private market valuations? Thank you.
Lynn Moore: Yeah. Thanks, David. Sure. As you know, we’ve been prioritizing debt paydown a lot at the same time while we’re still looking at other deals. I’m excited to — once we dropped under 1.5 net leverage, our rate in our bank changed, and we were able to achieve that at the end of Q3. So that’s encouraging. We’ve paid over about $1 billion of debt down. Brian talked earlier about the impact of Section 174 taxes and the pro forma free cash flow. We’d actually be out of term debt or pretty close to out of term debt right now, absent that, which is encouraging. As it relates to private market valuations there, I would say there’s — we’re starting to see in the market and the deals and the things that we’re hearing that expectations are finally starting to change.
It’s always been a little bit amazing to me that when you see things going on in the public markets and yet the private sector deals or people still think that the market should be where it was a couple of years ago. We’re still pretty disciplined in how we look at acquisitions. So in areas when private expectations still are too high, we’ll simply pass on the deal. We’re pretty excited to get these 3 deals done, 1 in Q3 and the ones that we announced earlier this week. These are good deals. These are good business deals, things that are going to help drive our growth, things that will leverage the growth drivers that we outlined in Tyler 2030. And they’re going to be accretive to revenues and margins over in pretty short order. So it’s interesting, too.
