Ken Goff: Our next question will come from William Kerr at TD Cowen. William?
William Kerr: Great. Thanks for the question. So in the shareholder letter, you noted a number of large customer wins on the enterprise side. Could you just give us a bit more color on what categories are driving the most demand? And maybe where you’re seeing your customers pull back a little bit? And then I have one additional question.
Gillian Munson: So just from a macro basis, the pullback was more by size as opposed to usage. So really in terms of pipeline, I think we saw — our execution was a bunch of the pullback. But then in SMB, we saw a little bit more than elsewhere, but kind of across the board. So it wasn’t like one use versus another. And I think in terms of use cases, we continue to see many of the same ones that you’ve seen over time; marketing, communications, all those good things. So no real change on how people are using the product.
William Kerr: Okay, great. And then, SBC was down again year-over-year this quarter and you guys have made a lot of progress on that side of things. And I was just wondering how you’re thinking about limiting share dilution over time. And if you think you’re happy with the current levels of SBC and where you’re thinking for the next several quarters?
Gillian Munson: Yes. I didn’t mention this in the beginning when we talk about cost, I really talked to the EBITDA. But the net income story at Vimeo was also really strong. In addition to the interest income we’re starting to earn on our cash balance, as it helped the bottom line, the stock-based comp has been really controlled. Now there are some ins and outs on that, right? As you know, we’ve had some folks depart the company over the course last year. There’s been a lot of change here. And so I think in this quarter, we had a handful of folks who were sort of late last year grants that backed out — were backed out of the stock-based comp, which is just normal with the kind of change we are having. So that level for this quarter, which was just around 7 million, probably is a little bit lower than where we’ll land.
My suspicions will be closer to 9 million, 10 million a quarter moving forward. But if you can think about it in sort of the longer form, a year ago, that number was 19 million. And we were thinking we were going to be looking at $20 million a quarter in stock-based comp. And as that represents dilution, that’s a pretty hefty number. The company and our comp committee have really joined forces to limit dilution this year. I think we’ve done a really nice job at it. And we will continue to be conservative in terms of giving stock out over the course of the future.
William Kerr: Great. Thanks so much.
Ken Goff: And with that, there are no further questions. I will hand the call back to Gillian.
Gillian Munson: Thank you so much for joining our Q3 2023 live Q&A. We look forward to updating you again next quarter.
