Stephen Trundle: Yes, Darren, that’s what I was attempting to communicate. So, we — and again this wasn’t a major pullback, but it was just enough that it was sort of noticeable. And we just — from what we can tell, really beginning sort of mid-August, we starting seeing some slower or delayed purchasing cycles, where orders that were in process might normally close in three or four weeks, seemed to drag on, drag out of the quarter. So, that that’s sort of what I think we saw. And the second-half of the third quarter is just tapering of intensity at the enterprise level primarily, meaning larger customers, large facilities, large, big box retailers, quick serve restaurants, places like that that would typically be installing at a certain rate.
That’s pretty predictable. That rate came down a bit in the second half of the third quarter. We assume, we don’t know, but we assume like many people, that folks are kind of trying to get a read on the overall economy right now and thinking about the velocity of their CapEx expenditures and whether it’s better to be in conservation mode or better to be in sort of growth mode at the moment. So that’s our best guess. But we saw just a little bit of a slowdown in the third quarter in that space.
Darren Aftahi: That’s helpful. Thank you. And then maybe one for Steve Valenzuela, your free cash flow number is exceptionally strong. I’m just curious with the collections and the DSOs. I mean, is that a sustainable sort of working capital sort of pass-through beyond adjusted debt income? I mean, how should we think about free cash flow in the fourth quarter based on the implied guide?
Steve Valenzuela: Yes. Q3 certainly was an extraordinary cash flow quarter. Everything came together. We can’t expect that on an ongoing basis. Q4 typically would be — when we hear cash flow quarter, there is seasonality in that as well. So Q3, we had very favorable DSOs. We had inventory come down a bit. Q4, we also have the potential tax payment related to the new tax rules around R&D capitalization, which might have to be paid if Congress doesn’t change that rule. And so, yes, Q3 is certainly an extraordinary quarter for cash flow. But generally, if you look at the year-to-date cash flow of around $90 million, generally, on a normal basis, the year-to-date or the year cash flow usually is around $90 million to $100 million. It’s just that Q3, everything came together and generated that amount of cash flow.
Darren Aftahi: Got it. Thank you.
Steve Valenzuela: Thank you.
Operator: One moment for our next question. Our next question comes from Matt Bullock with Bank of America. Your line is open.
Matthew Bullock: Hi. Awesome. Thanks. Yes, I’m on for Mike Funk, great to see the strong EBITDA performance. I’m curious if you could provide us an update with whether or not the Vivint impact to revenue EBITDA and, I guess, legal expenses has tracked with the initial guidance you provided. I guess, it was about a year-ago. Just trying to parse through whether or not some of this strong EBITDA performance is related to potentially lower legal expenses or how that’s evolving. Thank you.
Steve Valenzuela: Sure. Hey, Matt. Yes. The EBITDA performance comes from a little bit stronger business than we expected at the beginning of the year. I would say success in executing on some belt-tightening initiatives and driving more profitability in the business. But we also did get some benefit, I think, at the beginning of, you kind of referenced about a year-ago, when that private matter came up initially. We didn’t really know. I think, I probably said, I don’t know exactly how broad or how intense our legal burdens would be, but I’ve got a budget for it at a week ago, a reasonably aggressive level. So we did budget for it. We haven’t burned at quite the level. I think I telegraphed ballpark-ish $16 million on that at that time for this year. And we haven’t burned at quite that level, but we’ve burned a healthy amount, and it’s still an ongoing matter in the years. The year’s not done, but I’d say it’s been a little less intense than what I anticipated.
