Ian Siegel: And I would just add to that, in addition to sort of capital markets availability of funds for investment and/or perceived outlook on the market. Another factor that drives a lot of recruiting within businesses is, of course, turnover. And what we’re seeing right now is a significant reduction in the quit rate amongst job – sorry, the currently employed compared to where we were a year ago. We sense that great resignation is over and it’s become not only apparent, but I think it’s changing the posture and confidence of business owners as they have longer tenured employees who are fully on ramped and trained, and so their urgency around hires is definitely being impacted by that.
Unidentified Analyst: Understood. Thank you.
Operator: Thank you for your question. [Operator Instructions] Our next question comes from the line of Kunal Madhukar with UBS. Kunal, your line is live.
Unidentified Analyst: Hi, thanks a lot. This is Jason on for Kunal from UBS. A couple of questions for me as well. The first one is on OpEx seasonality. Can you guys give us a refresher on the typical seasonality of different OpEx line items? It’s been pretty lumpy, but what kind of seasonality can we expect going forward in this environment? And also you mentioned in the letter that Q3 R&D expense came in a lot lower because of lower personnel-related charges. Could you please explain what that really means? And separately, on capital return, you guys have been running cash level pretty consistently at $250 million. I understand that share repo is done more opportunistically. But given the current stock levels, would it be reasonable to assume that anything well above $250 million cash level right now, you guys will be returning back to investors? Thank you.
Tim Yarbrough: Thanks, Jason. This is Tim. I’ll take these. So as far as OpEx seasonality, one thing I’ll say off the bat is that it’s been a while since we’ve seen more typical seasonality. So we have to go back to the 2019 and before that to kind of understand that picture. But in broad strokes, the hiring market really comes back to life after a holiday lull in January and then a fairly steady ramp into Q2 and then relatively flat through the balance of Q3, picking up into September, October and then back down during the holidays. And oftentimes, the very flexible operating expenses that we have, specifically in our go-to-market motion and sales and marketing, that will kind of follow a very similar pattern. And that’s just basically because we’re very responsive to the demand environment that we find ourselves.
But like I said, at the top of the question, we haven’t seen that typical seasonality for quite a while. And so, no operating expenses have bumped around a little bit, and that is because we are doing the very thing. So we’re responding to the demand environment that we see. To your second question, R&D expense is coming down a little bit. We did a reduction in force back in Q2. And so what you’re seeing in Q3 is the full impact of that rolling through the P&L. And so you see something similar as well in G&A, although to a lesser extent, to some other interest – other expenses increasing a tiny bit. And then sales and marketing came down primarily again because of our marketing efforts to invest where we see opportunities. And then to your last question, about our capital allocation strategy in general, our philosophy hasn’t changed during all parts of the cycle.
So when we look at organic investments, that is, by far and away, our first priority, and we still feel very good. We’re cash flow positive. So clearly, we’re well funded there. Secondly, we are scouring the world for interesting acquisition targets. So we’re staying diligent there. And then to your point, on capital returns, we’ve been actively repurchasing shares over the years. And so we – the philosophy there is the same when we see a dislocation in the stock price. We’re happy to invest in our own shares, and we approach that with the same mindset as we do with organic investments, i.e. with a longer-term mindset spanning years. So I’ll just say we’re still participating in share repurchases, but we do it opportunistically with priority being on organic investments and inorganic investments.
