Operator: Our next question comes from the line of Adam Hotchkiss with Goldman Sachs. Please proceed with your question.
Adam Hotchkiss: Great. Good morning and thanks for taking my questions. Great to see the success of some of the new logos you called out. Could you just give us a quick update on what you’re seeing on the competitive front, how you’re feeling about win rates relative to the prior quarter and sort of the first half of the year? And then sort of breaking that down between folks who are competing against you in the enterprise versus some of those that are more down market and trying to work their way up market?
David DeStefano: Sure. I think we’ve enjoyed a strengthening in our competitive dynamics from our side. I think with the product portfolio, and the focus we put into the platforms that we focus on. The team is doing exceptionally well in that area. Our primary competitor in the enterprise market remains Thomson, no change there whatsoever, and we treat them obviously as a very formidable competitor. Our tax content database, the depth of our ERP, the referenceability, the Big 4 relationships, all of those dynamics come into play as a differentiator for us. And I would be remiss if I didn’t highlight the customer success and customer experience organization. big customers, larger enterprises are very discerning about that customer experience and support that they’re going to get, and we continue to leverage that, Adam and differentiate in our win rate across that.
As far as we go into the mid-market, that’s where we’re running the competitors that are looking to move into that space from the SMB side. And I’d say in the ecosystem that we’re focused on, we’re starting to see growing traction and success with our solutions and our win rate. We’re not intending to, again, peanut butter spread the market there. I don’t think that’s a sustainable economic model for us. We really want to be able to drive EBITDA as well. And so our focused investments are in the ecosystems that we see the largest number of players that will evolve to be enterprise companies for us in the long-term. That served us well for 40 years, and we’re very focused there.
Adam Hotchkiss: Great. No, that’s really helpful. Thanks. And then, John, when you think about the major growth drivers that are embedded in the guidance, how are you approaching expectations for new logos versus net expansion drivers like new geos products, volume in this environment? Any particular strength to call out?
John Schwab: Yeah. I think as we thought about guidance, again, I think we €“ as I mentioned earlier, we feel pretty good about kind of what we’ve built in Europe and how that’s been going. We’ve been building that for the last €“ since the IPO for the last couple of years. And so that group is largely getting in place, and now we’re getting some time with everybody to really kind of hone our skills. So I think feel good about that. From a new logo standpoint, that’s always an area of focus for us. We think the opportunity there to continue to kind of lean in and work with some of these partners that David talked about, is really going to help us some new logos and generate some new logo activity. But we’ll start to see incremental improvement there.
Again, the customer base we have is so strong. That’s why historically we’ve seen kind of 70% of new opportunities come from existing customers. But we intend to kind of to drive new logo opportunity and grow that over time. I think that’s an area that we think there’s opportunity for improvement. So we’re going to keep focused on that. But I can’t call out anything specifically to say we expect that to change by a certain €“ a certain number of percentage points.
Adam Hotchkiss: Really helpful. Thanks, John. Thanks, David.
John Schwab: You bet. Thanks, Adam.
David DeStefano: Thank you.
Operator: Our last question comes from Pat Walravens with JMP Securities. Please proceed with your questions.
Pat Walravens: Great. Thank you. Congratulations. All right, David. So summing it all up, what are your top two or three priorities for this year?
David DeStefano: Execution, execution and execution. I think we have invested heavily in our new product portfolio, our sales and marketing capacity, our customer success and customer experience organizations and Pat, I really want to see the team just continue to stay focused on that. I think we’re fortunate to work with the best customers in the world with through the best partners in the world, and it’s really on us to execute. So that would be number one. I think number two is continuing to advance the Vertex team and its talent. I think, we fortunate to attract some of the best people in the industry, and we want to keep doing that. We’ve really been able to differentiate with our people over the years. And so investing in those folks is really critical to our success.
Pat Walravens: All right. Congratulations again. Thank you, guys.
David DeStefano: Thank you, Pat.
