Mark Schappel: Okay. Thanks. And then, Michael, with respect to your prepared remarks around needing to make some additional investments next year. I was wondering if you could just elaborate a little bit more on that?
Scott Hill: Yes, it’s Scott. Let me take that one. So I think from my standpoint, two months into the role, there are a couple of areas that I think are important for us, as I said in my prepared remarks, to strike a balance between food and investment and not losing sight of the opportunity to grow. I look at an amazing group of people inside the company and an amazing set of products that have been developed and are being developed. And again, that’s just not my opinion. That’s for me spending probably three or four dust meetings with customers. But I think it’s important that we really enhance the ability of our sales team to get out and sell those great products to our customers. As I said earlier, the growing number of customers gives us a growing amount of opportunity.
There are a couple of places where, for example, we really have dialed back significantly in our investment, in our sales operations function. We largely disinvested in our customer success function. And all of those are necessary to support the sales team to be successful with customers. And so we’re going to make some investments to improve those areas and enhance those areas. So our sales team can focus on what they do best, which is sell. The other thing, I think the company has done a really good job this year of focusing on performance management with regards to the field sales but I think it’s left us a little under capacity in the field right now. And so we’re going to make some investments to make sure we’ve got the right capacity in the field.
So those investments are about further enabling the sales team about supplementing the sales team to give us the team on the field that has the opportunity to go out and consistently win. Because ultimately, as we move along the path towards profitability, I think a path that is a combination of prudent investment and top line growth is really the only sustainable way to get there.
Mark Schappel: Great. Thank you. That’s helpful.
Operator: Thank you. Our next question comes from the line of David Hynes from Canaccord. Please go ahead with your question.
David Hynes: Hey, good evening, guys. Scott, maybe I could stay on that Fred I hear your comments in the prepared remarks that pendulum has swung kind of too far towards cost optimization. Is that at Hampton any way that you guys are backing away from the Q3 2024 EBITDA breakeven target?
Scott Hill: Yes. I’m two months into the job, I’m not backing away from anything nor am I leaping ahead. All I’m saying is I think there are areas that – as I move from kind of 30,000 seats at the Board level down to 10 feet at the CEO level, I think some rebalancing needs to occur. I’ll give you another example. Our team has worked incredibly hard as we move through this year to deliver on the product. I mentioned the pace of productivity out of our engineering team is better than it’s ever been. The products that we’re developing, the skills that we’re developing for Cecilia are remarkable. And I’m not convinced that the rewards have kept up with that for the team. And so I think there’s an investment in our people. I said it in my prepared remarks, I think the most important asset we have is our people.
And so I think there’s an investment that needs to be made there. So I’m in no way today suggesting that it’s a significant investment in terms of dollars but it is significant in terms of what I believe it will result in. And that is an even more motivated employee population and even more motivated and enabled sales team. And I think that will help us get back to the growth company that we were and help enable, as I said, a more sustainable profitability as we move forward as a company.
David Hynes: Yes. Understood. Thank you. Michael, a follow-up for you. So increased revenue sequentially now for three quarters in a row. It sounds like you’re pretty constructive on the trends that you’re seeing through October. Is there anything you’re seeing in the business today that would lead you to think that – that trend of sequential growth doesn’t persist into Q4?
Michael Lafair: Look, Vijay, it’s a really good question. I mean we feel good about the recent trends in the business over the last few months and in particular with respect to eDiscovery and additional data on the platform and then into October. And so we feel good about all those trends. We are usage-based. And so cases will end and cases will get added back to the platform. So I’m cautiously optimistic about the trends in the business, and I’m really pleased in terms of where they’ve been going in the last few months.
David Hynes: Okay. One last quick clarification for me. I believe I heard you say that, that large client review ended in Q2. Is that correct? So there was no bleed of revenue from that into Q3?
Michael Lafair: I don’t actually know exactly offhand if it — there may have been a little bit of a tail into Q3. I’m not sure off hand, but the $1 million plus was all in Q2, and there could have been a little bit of a tail, but if it was, it wasn’t material.
David Hynes: Okay. Thank you guys. I appreciate the color.
Operator: Thank you. [Operator Instructions] Our next question comes from the line of Koji Ikeda from Bank of America Securities. Please go ahead with your question.
Koji Ikeda: Hey, Scott, hey, Michael. Thanks for taking the questions. Michael, I just wanted to circle back into some of your prepared remarks about 2024, realizing you’re not guiding on the revenue side, but you did make a comment on operating expenses. I think I heard you right where you said you’re trying to hold operating expenses flat for next year. Does that mean like on a 4Q guidance run rate basis? Or just trying to understand exactly what you meant by that holding expenses flat.
Michael Lafair: I think what I said was no significant increase from where we are now is what I said. And we’re going to have more to come back to you with more color and detail in Q1 when we report Q4.
Koji Ikeda: Okay. Okay. Got it. And then just thinking about that and some of Scott’s comments on potential revenue growth drivers from here. I guess you guys are doing a good job of trying to control what you can, which is investing in the growth levers that you are. And when we’re looking at the model, is it safe to say or safe to assume that the primary function here to drive growth given the revenue recognition, usage-based model of your revenue, it’s customers, right? It’s trying to land as many customers as you can. And customer growth is going to be the best indication of future growth for this business?
Scott Hill: Yes. Look, it’s Scott and Michael will know the numbers better than I do. But clearly, our ability to continue to grow customers is a net positive from a revenue standpoint. But as I said to the earlier question, I don’t think it can be only that, right? I think we have to continue to drive new customers, but then we also need to continue to build the relationships with existing customers to sell them more. If they’re an eDiscovery customer, that’s fantastic. But if they have a review coming up in front of them, we need to be selling them on our review team. We have an outstanding review team and we need to make sure our customers — our existing customers know about that review team. Again, an eDiscovery flag planet in the ground is fantastic, but have we shown them Case Builder and all of the skills that we have in Case Builder, the ability today on a subscription basis to have Case Builder and use Cecelia skills to develop a timeline, to do witness management?
