MarketWise, Inc. (NASDAQ:MKTW) Q4 2022 Earnings Call Transcript

MarketWise, Inc. (NASDAQ:MKTW) Q4 2022 Earnings Call Transcript March 30, 2023

Operator: Thank you for standing by, and welcome to the MarketWise Fourth Quarter 2022 Earnings Call. During today’s presentation all parties will be in a listen-only mode. Following the presentation, the conference will be open for questions with instructions to follow at that time. As a reminder, this conference call is being recorded. I would now like to hand the conference over to Jonathan Shanfield, Vice-President of Investor Relations at MarketWise. Please go ahead sir.

Jonathan Shanfield: Thank you operator and good morning. Thank you all for joining us on today’s conference call to discuss MarketWise’s full year and fourth quarter financial results. With me on the call today, we have Amber Mason, our Chief Executive Officer, Stephen Park our Interim Chief Financial Officer and Lee Harris, our Senior Vice President of Financial Planning & Analysis During the course of today’s call, we may make forward-looking statements, including, but not limited to, statements regarding our guidance and future financial performance, market demand, growth prospects, business strategies and plans, and our ability to attract and retain subscribers. These forward-looking statements are based on management’s current views and assumptions and should not be relied upon as of any subsequent date, and we disclaim any obligation to update any forward-looking statements.

Actual results may vary materially from today’s statements. Information concerning our risks, uncertainties and other factors that could cause results to differ from these forward-looking statements are contained in our company’s SEC filings, earnings press release, and supplemental information posted on the Investors section of the company’s website. Our discussion today will include certain non-GAAP financial measures. These non-GAAP financial measures should be considered in addition to, but not as a substitute for, or in isolation from GAAP measures. Reconciliations to non-GAAP measures can be found in our earnings press release and SEC filings. Now I’ll turn the call over to Amber.

Amber Mason: Thanks John and good morning everybody. Welcome to our fourth quarter 2022 earnings call. I’ll get to the numbers in a moment, but since this is my first official to finance is the €“ I’d like to take a few minutes to introduce myself, tell you a little bit about my views at MarketWise and show you some of the opportunities that I face ahead for our company and all of our stakeholders. I’ve been in this business for 17 years. I’ve worked in all levels of the organization. I’ve been in a proof reader, an editor, an analyst, a copywriter €“ not a very good one, a publisher and Vice-President and business development. I was then promoted to Chief Operating Office as enter into a CEO. My experience in a MarketWise ecosystem gives me a unique and broad perspective that I bring to the role of CEO.

Importantly, I bring an operator’s perspective to my role. During my career I transformed two of MarketWise’s businesses. The largest was I guess the research group where I served as co-CEO for more than 5 years. My partners and I build legacy by merging three separate newsletter businesses. Each business had a different culture, different leadership and different strengths and weaknesses. The first year was a huge challenge. We had to integrate the team, rightsize compensation, determine the appropriate people and product and exit those businesses that were not a long-term fit, and I’m very proud of our results. We delivered a seven fold increase in profit in just our first year. And over the next few years we built legacy into MarketWise’s largest business.

Now as CEO of MarketWise I’m not on the frontline, but I know what it means to be in that role and I understand how all of the people that were publishing business sit together, including marketing, copy, editorial and operation. I have years of experience acquiring retaining and motivating e-talent with and our publishing businesses. And I worked side by side with all of the remarkable individuals currently running our affiliates. I’ve also been on the inside of our acquisition shield a key driver of MarketWise’s extraordinary growth. Looking forward, my goal is to position the business through it’s next phase of growth and unlock the enormous value that it gets right now in our shares. I’m currently working with all of our executives to do deep dive into our centralized operation to understand how we can improve our efficiency.

I’m working with the affiliates and our business development team to find opportunities to grow in this more challenging environment and accordingly to deploy our capital for the benefit of shareholders. Next time we talk I’ll cover all that in more detail, but now let me share what I found so far and my priorities for immediate improvement at MarketWise. First, my overall focus is on serving our subscribers by producing great product with quality teams and investing ideas. This is what has made us successful overtime and we’ll continue to do so. So in revamping our system for tracking our performance of our analyst recommendations on specific investments, which we use to evaluate talent. These results provide the information necessary to promote publications, investing teams and our star analysts as well as provide a kind of report card that will allow us to quickly pivot or even retire product that are now underperforming.

Second, we must improve the financial performance of the company. We’ve already reduced our overhead and direct marketing spend. We’ll get into more specific about what we did last year in depth. This year there is no review. We are aggressively looking for credits introductions and opportunities to improve our overall efficiency. For example as we transition from private partnership to a public company, we incurred a huge amount of professional fee. As we move towards the second anniversary of our transaction we are working to bring much of that expertise in-house which will create significant feedback . Third, talent acquisition and retention are incredibly important parts of our business. Our stellar analyst, copywriters, marketers and operation staff all resonate this company successful.

We are always on the lookout for new talent with new ideas and energy as with our team. Fortunately we have lots of ways to do this. We can hire through acquisitions, through the efforts of our publishers who are always looking for new voices and even from our subscriber list. Some of our most successful employees were readers before they joined us. Fourth, our public shares have not performed the way we’d like. We’ve got headwinds. The overall stock market conditions since we’ve gone public has hurt our share price and our billings. And we continue to get lumped into the post back universe of troubled companies, despite the fact that we’re one of the few who have maintained profitability and positive cash flow. Obviously, we need to improve our operating performance, which I already discussed.

We can also look to the company’s long history of generating cash and rewarding our shareholders. Thus, I’m directing an effort to find a new permanent Chief Financial Officer, ideally one with public company and capital markets experience who can partner with me and my staff, and guide us as we mature as a public company. This effort is underway and I’m hoping to introduce someone to you very soon. In the meantime, I want to thank Lee Harris here and Steve Park for their incredible work. Steve just joined us in the past month, and he’s been a clutch addition to the team. And finally, I also plan on bringing in a Chief Operating Officer to backfill the role I had briefly prior to this one. Having a talented and experienced COO is critical to delivering improved operating efficiencies.

I look forward to expanding upon our initiatives in our first quarter earnings call. And I’m very excited about what the future holds for MarketWise. Turning to our results, the market dynamics that began in early 2022 continued in the fourth quarter. Investor engagement fell as volatility and economic uncertainty increased. For the full year we generated $512.4 million in revenue measured on a GAAP basis, a decline of 6.7% as compared to the prior year. Billings declined 37% year-over-year to $459.5 million and our adjusted cash flow from operations was $59.3 million down from $197.1 million for all of 2021. One of the strengths of our business what has made it so resilient over the last 20 years is our ability to manage costs in response to various market environments.

In 2022, we quickly implemented a series of measures aimed at lowering our marketing and overhead costs, and improving overall cash flow and margin through the second half of the year. We achieved our target of approximately $74 million in total saving, $40 million from direct marketing, which was realized over the second half of 2022 and overhead reductions representing $36 million of annualized run rate savings. It’s important to note that these savings are on a cash basis, and a portion of them are not immediately reflected in our GAAP results, but will be recognized over time. Because we took action, we have realized significant improvement in our margin since last summer. Specifically in the first half of 2022, we collected $254 million in billing and recognize $28 million in adjusted CFFO, resulting in an adjusted CFFO margin of 11%.

In the second half of the year, even though billings declined to $206 million, we recognize $31.5 million in adjusted CFFO for an adjusted CFFO margin of 15.3%. Additionally, our adjusted CFFO margin for fourth quarter 2022 improved to 18.2%. This margin improvement is a direct result of our cost cutting initiative, and we continue to focus on our margins this year. Beyond our financial results, the team had many notable accomplishments in 2022, including the introduction of 49 new publications to the market, covering a range of relevant investing topics such as healthcare, options, trading strategies and energy. In addition, as we strive to be more efficient, we retired 33 publications that were not as effective or were focused on themes that did not reflect the current market.

We also focused on integrating some of our technology products with our research brands to further enhance our product offerings. In 2021, we brought the chicken brand to our platform and experienced tremendous success in growth and billing. Similarly, last year, we successfully marketed our Altimetry brand to a much larger audience. As a result, our most recent marketing campaign for Altimetry proved to be their most successful in terms of billings over the last two years. Additionally, we aligned another of our technology brands TradeSmith with our Investor place business. TradeSmith, our leading financial technology and quantitative systems brand began as a simple way to track portfolio using trailing stops and has evolved into a powerful suite of risk management and portfolio analysis tools.

This suite of tools features volatility based buy and sell alerts, stock screener tools, a robust rating system and a very successful options trading tool, all of which further empower the self-directed investor. Our experience with these recent combinations has proven that offering technology products to our subscribers along with our content brands leads to higher average revenue per user for ARPU, and better subscriber retention. As we go forward, we look to offer more quantitative tools and products with our investment research, both through our existing brands as well as in our M&A efforts. We also took a meaningful step to improve our capital structure during 2022. In the third quarter we completed a tender offer to exchange all outstanding warrants for shares of Class A common stock.

Through this exchange, we retired a total of 31 million outstanding public and private warrants. As a result, we issued approximately 6 million Class A common shares, which increased our public shares by approximately 26%. This increase in shares added to our public float and our trading liquidity with being less than 2%, diluted to our total shareholder base. From a corporate finance perspective, we believe eliminating the warrants simplifies our capital structure, making it easier to execute future corporate financing activities. We know that individuals are the key to the success of our organization, and we can continue to recruit talented analysts and teams to join our organization, including those coming to us from our Winans media transaction and we look forward to their contribution.

The overall market for M&A remains attractive and we continue to look for ways to enhance and further combine editorial teams, software and technologies, as well as looking to add existing businesses to complement MarketWise. However, we also realize it is important that even in period of active M&A, we continue to be diligent in terms of evaluating risk, strategic alignment and determining proper valuation and pricing. Employee continue to be active and interested in certain opportunities. We are also committed to sound financial transactions with acceptable levels of risk and return for our shareholders. Looking to the year head, we believe we are in an advantageous position to capitalize on opportunities as they unfold. Now, let me turn the call over to Steve to discuss the financial results.

Steve came on recently as our Interim Chief Financial Officer. He is an accomplished financial executive with significant experience in the CFO role across many companies, both private and public. He has a history of driving change and accounting and finance organizations, building teams improving processes and implementing systems and control throughout various organizations. Earlier in his career, he was an audit partner at Ernst & Young. We welcome Steve to MarketWise and appreciate him lending a hand as we work through our transition period, where we look to bring in permanent CFO. Thank you, Steve.

Stephen Park: Thanks Amber and good morning everyone. As Amber described, market factors that impacted our business in the first half of the year continue to persist throughout the third and fourth quarters. The U.S. economy continues to experience higher inflation, the uncertainty of upcoming recession and the impact of increasing interest rates on equity markets as they remained in bare territory during the quarter. Not surprisingly, we continue to see retail and self-directed investors hesitate to engage in purchasing new investment research, as market volatility remains elevated. As a result, we experienced a lower engagement levels during the quarter and reduced certain direct marketing expenses consistent with our cost savings initiative that we began in the second quarter of 2022.

In fourth quarter 2022, our landing page visits were approximately $26 million down to 5% from third quarter 2022 levels. Similar to prior quarters, this resulting decline in landing page visits had an impact on both billings and new subscriber acquisitions this quarter. However, our overall conversion rate is exactly the same as in the prior quarter. In contrast to full year 2021, our 2022 landing page visits were down approximately 30% and our overall conversion rate declined by approximately five basis points. Our current subscribers have also slowed the pace of buying additional subscriptions as a result of these macroeconomic conditions, as it is taking somewhat longer for our customer to move through their subscriber journey with us than in the past.

However, even in this slower paced environment, our high value in ultra high value subscribers continued to purchase additional subscriptions, leading to an all-time high in active cumulative spend by all subscribers. We believe this is another indication of customer satisfaction, and that these subscribers find value in our products, which is why they remain with us for the long-term. Turning to the financials. GAAP revenue was $127.7 million this quarter, compared to $146.7 million for the fourth quarter of 2021, a decrease of $19.0 million or 13%. The decrease in revenue was driven by a $14.7 million decrease in term subscription revenue. Billings were $100.9 million compared to $151.4 million for the year ended — for the year ago quarter a decline of $15.5 million.

We believe the decrease is due in large part to reduced engagement of our new our new and existing subscribers. The challenges that emerged in the first half of 2022 continued throughout the remainder of the year, which we believe further contributed to prospective and existing subscribers delaying their purchases. Sequentially, our $100.9 million in fourth quarter billings decreased $4.2 million, or 4%, from third quarter 2022. This decrease was primarily driven by a 5% decrease in landing page visits, as we maintained the same conversion rate through the prior quarter. Approximately 35% of our billings came from membership subscriptions, 63% from term subscriptions and 2%, from other billings in fourth quarter 2022. This compares to 45% of our billings from membership subscriptions, 54% from term group subscriptions, and 1% from other billings in fourth quarter 2021.

As we disclosed in the middle of 2022, and as Amber touched on earlier, we have been actively working to reduce expenses and executed on a cost reduction initiative throughout the second half of the year targeting $74 million in total expense savings. This came in two parts. First, we anticipated reducing overhead by an annualized amount equal to approximately $37 million, or 15% of budgeted overhead. As a result, and through the fourth quarter, we achieved approximately $30 million of annualized overhead reduction as compared to the run rate in first quarter 2022. Additionally, we identified in realized $6 million in savings related to 2022 eliminated budgeted overhead spend for the year, bringing our total annualized overhead savings to $36 million.

Second, we targeted an approximately $37 million reduction to direct marketing expenditures in the second half of the year, as compared to the first half of 2022. During the second half of 2022, we reduced our total direct marketing expense by $40 million, or approximately $6.6 million per month, which exceeded our targets by approximately $3 million. I should remind everyone that marketing is our most significant variable cost in our use of direct marketing, and the related cost is dependent on market factors. If per unit acquisition costs improve and the market dictates, we may decide not to cut marketing spend to the same degree going forward and instead focus on subscriber acquisition. In total, through the end of the year, we successfully achieved our identified cost savings targets for both overhead and direct marketing.

While we are pleased to have realized these savings, we continue to look for additional savings where appropriate and improve efficiencies as we work to protect both margins and cash flow. Cost of revenue was $14.4 million this quarter, compared to $17.6 million for the year ago quarter, a decline of $3.2 million. This decline was driven primarily by a decrease of $1.2 million in credit card fees, a $1.3 million decrease in outsource contracting customer service fees and a point $0.4 million reduction in salaries and related benefits expense. Sales and marketing costs were $50.4 million this quarter compared to $65.7 million in the year ago quarter, a decrease of $15.3 million. This decrease was primarily driven by a $20.2 million decrease in direct marketing expense related to our cost reduction initiative, partially offset by a $5.3 million increase in the amortization of deferred contract acquisition costs.

General and Administrative costs this quarter, with $34.9 million as compared to $31.8 million in the year ago quarter, an increase of $3.1 million. The increase was primarily driven by a $7.7 million increase in severance related to executive compensation contract expense, and a $1.3 million increase in professional fees. This was partially offset by a $3.3 million decrease in employee compensation, a $1.3 million reduction in donations and a $0.6 million reduction in travel expense. Net income in the fourth quarter 2022 was $4.3 million compared to $8.6 million in fourth quarter 2021. We recognized stock-based compensation expenses of $1.9 million in fourth quarter 2022 as compared to $2.3 million in fourth quarter 2021. Adjusted CFFO was $18.4 million in fourth quarter 2022, compared to $5 million in the year ago quarter, with the increase primarily due to moving 2022 annual bonus payments into the first quarter of 2023.

In the reduction of both overhead and direct marketing expense, offset by a reduction in buildings. Adjusted CFFO margin was 18.2% in fourth quarter 2022 as compared to 3.3% last year. However, adjusted CFFO margin improved from 11% for the first half of 2022 to 15.3% for the second half of the year as a direct result for our cost cutting initiative. We continue to focus on margin improvement in 2023. Our paid subscriber base declined from 972,000 at the end of fourth quarter 2021 to 841,000 this quarter, a decline of 13.4% driven by a decrease in overall consumer engagement. However, we increased our free subscriber base by 2 million during the course of 2022 a 14.6% increase. ARPU declined to $519 this quarter, from $742 in fourth quarter 2021 driven by a 37% decrease in average trailing four quarter billings, combined with a 10% decrease in average trailing for quarter paid subscribers.

We believe the billings decline is primarily due to the volatile economy that has persisted since first quarter 2022, leaving subscribers and potential subscribers hesitant to purchase or upgrade as they assess the latest economic data and the impact from the Federal Reserve’s recent and future interest rate decisions. Before I turn it back to Amber, I want to emphasize that we are pleased with the results of our cost reduction initiatives and improved margins. We continue to look for further opportunities to create efficiencies, both in operating and overhead reduction, where we feel we can find meaningful improvements while maintaining the strength of our core businesses.

Amber Mason: Thanks, Steve. To conclude, I see great opportunity ahead for MarketWise and most importantly, improving our operations and performance is largely within our control. We will focus on increasing our marketing efficiency, recruiting extremely talented individuals and delivering high quality research to our subscribers. We are committed to operating the business in a clean and efficient manner to ensure we have the right people in the right role, and to make sure that our marketing spend is maximally effective. Finally, we’re also looking to hire a CFO with deep public company experience to partner with me on a corporate level, and a COO to ensure we attain operational excellence, where I see much opportunity. Since our start in 1999, our success has been achieved by focusing on three core principles which are at the foundation of our business.

We delivered great investing ideas to the retail investor, we deliver these ideas written in a way that is easy to understand and execute, and we treat our subscribers the way we would want to be treated if the roles were reversed. Central’s this operating philosophy is that we consider all subscribers to be potential lifelong partners. And it is this long-term relationship that provides immense value and a stable base of recurring revenue. These principles have informed our growth and leadership over the past 20 years and will continue to do so in the future. The actions we have taken throughout the year remain in line with that simple operating philosophy as we continue to manage the business for the long-term benefit of our shareholders, subscribers and employees.

I will now turn it over to the operator for your question.

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Q&A Session

Operator: Thank you. Our first question comes from the line of Jason Helfstein with Oppenheimer. Please proceed with your question.

Jason Helfstein: Thanks and congratulations on the new role as CEO title. So three questions; the first, just can you help bridge your comments around the first quarter outlook it’s not consistent with the Schwab trading data, which is showing kind of a rebound in trading activity. I think it was like minus five in the fourth quarter and I think it’s trending plus 10 in the first quarter. So, if there’s a disconnect there, why do you think that? And then, if that’s not a good indicative indicator of your business how should investors think about that? The second question, marketing efficiency was flat in the quarter sequentially as a percent of bookings? Do you expect this ratio to improve over the next few quarters? Or is this more of something we should think about for 2024?

And then last question, guys CFO question. You said there was $7.7 million of severance, which is obviously a one time expense, $1.3 million of professional fees, not a onetime expense, but something you expect to improve. Can you give us those numbers for the full year both severance and professional fees? Thank you.

Lee Harris: Hey, hey, Jason. It’s Lee Harris. I’ll pick the first two of those. As far as the DAT’s question. So we see DAT’s trending at plus nine, I think you saw you said maybe plus 10. Our landing page visits are very much tracking in line with those DAT’s through the first three months of the first quarter. Really, what what’s hurting us is our conversion rates are a bit subdued, they have deteriorated since the fourth quarter. And you compound that with the issues that have surfaced in the banking industry of late, those rates are just down. Right? And they have modestly improved in the last couple of weeks. I wouldn’t call it a trend just yet. But obviously, we’re keeping our eyes on that. So, as you know, conversion rates are critical in terms of us achieving the level of billings that we want to see.

So that is, that is why there’s a little bit of a disconnect between the perhaps some good news on the landing page visits versus what we’re seeing in terms of conversion. In terms of the marketing efficiency, you are, you’re correct. Our rates are fairly flat, from the third quarter to the fourth quarter. As we’ve talked about, at length, we’ve cut our marketing spend back significantly and those numbers on a cash basis were fairly flat between 3Q and 4Q and that pace continues right into the first quarter. So if you’re looking at the sales and marketing spend on the GAAP, P&L compared to billings, really what we need to improve that is our billing to pick up. The marketing spend, we will continue to obviously keep eyes on that, and we’re not going to we’re not going to spend money, we’re not going to get a good payback.

Right? So until we start seeing some trends that we have in our favor in terms of the conversion and the overall economy, we will continue to spend kind of at the rate where we are today.

Stephen Park: With regards to your question on the $7.7 million worth of severance, you’re correct that that is a onetime charge. And we don’t expect that to recur. Obviously, that was the contractual portion of our responsibility to our former CEO. With regards to the professional fees of $1.3 million Again, something that we have an opportunity on those to manage and control as we move forward. But that’s not something that we typically comment on a future basis.

Lee Harris: Yes, I think again

Jason Helfstein: Lee, let me clarify, I’m not asking for future I’m asking for the full year 2022. So was there any other severance, just as people kind of think about their models? Was there any other severance in the first three quarters if we want to come up with a number?

Lee Harris: Yes, Jason, and if you look through our prior, I think it’s in our third quarter, when we did the — when we initiated the cost reduction plan, we did delineate some severance, which was one time that was related to the cost reduction program itself. So I can’t remember I want to say it’s, I don’t want to say the wrong number. But I know it’s in our prior release.

Jason Helfstein: Okay, so you know it’s

Lee Harris: Yes.

Jason Helfstein: And do you want to give what the professional fees were for all of 2022?

Stephen Park: It’s something we haven’t provided that way, in the past. It’s something that I know Amber can talk to, but she’s looking at diligently because there’s a lot of fees that came about and kind of were layered on along with our public transaction. And as she mentioned in her comments, and I don’t mean to speak for you Amber. But that’s, that’s something we’re focusing on now whether it’s to bring in house or to kind of do away with in order to kind of right size those costs.

Amber Mason: Yes, it’s a ripe opportunity.

Stephen Park: And — if we — as we get to as we get to putting that kind of more into a form and Amber’s going to a strategic review, I think we may have some more to provide that later.

Amber Mason: Yes.

Operator: Our next question comes from the line of Devin Ryan with JMP Securities. Please proceed with your question.

Michael Falco: Hi, this is actually Michael Falco standing in for Devin. Good morning. And I’ll just reiterate Amber, congratulations on the new role. Wanting to start on customer engagement and the relationship between frame paid subscribers. As you noted in the prepared remarks, paid subscribers have declined over the last year, but free subscribers are continuing to grow. Obviously, macro volatility has weighed on engagement. But how are you thinking maybe broadly about the strategy and any potential new content or products to both reach new audiences and also convert a greater number of free subscribers into paying customers.

Amber Mason: So I think our free subscribers are responding the same way as folks who aren’t on our lists at all there, there’s reduced engagement from them. And when we’re looking at our conversions from our active free subscribers, we’re seeing lower rates than normal. So we’re doing just what we’ve been doing all along, I think that what we need to do is find the pulse of the market, the pulse of our readers, and figure out what messages inspire them to take out their wallet. And we’re testing all kinds of different ideas every day among our affiliates. And when we find that we’ll see higher conversion rates from our free list as well as increased engagement across the board.

Stephen Park: Mike I’d also say, listen, there’s two things we can do. We can control our content, that we control our themes in our writing. What we can’t control is what we’re seeing going on. It’s around us, this, this and I — we hate to fall back on the macroeconomic factors, but the market hasn’t been conducive for retail investing. We’re seeing trading stats that are starting to look better. And our landing page visits as Lee, I think outlined, follow that. But it’s that second step of getting people to be comfortable to make the second part of final purchase, which has lagged a little bit. And so we’re given what’s happened over the last three weeks in the financial markets, that hasn’t been a help, we’re starting to see some, I think, again Lee mentioned this, we’re starting to see some traction.

But that’s really, that’s really kind of market dependent a little bit. So those two things together balance we’re trying to control we can control and perform to the best of our ability to provide that opportunity. And then we’ve got to get to get a little bit of favourability in, in market sentiment in the ease of investors, if you will, to help us out on the other side.

Michael Falco: Sure that makes sense. And then just wanted to double click on inorganic growth opportunities as well. Obviously, it did a small acquisition in the fall. And you notice the overall market for M&A remains attractive. I guess what does that pipeline look like? What kinds of opportunities are you seeing? And how should we be thinking about the appetite for possible strategic transactions in the near term?

Amber Mason: So I can’t get into specifics on our pipeline. But we do have opportunities that we’re interested, that we’ve been looking at since last year that are that could be maturing toward a transaction. And we’re looking for ways to deploy our capital to reward shareholders. And that will mean bringing in accretive transactions and also possibly looking at other strategies like buybacks and dividends.

Michael Falco: Right, I’ll hop back in the queue. Thanks.

Operator: Our next question comes from the line of Alex Kramm with UBS. Please proceed with your question.

Alex Kramm: Yes. Hey, good morning, everyone. Just coming back to some of the comments you made for the first quarter. Obviously, helpful, thank you. But in the interest of transparency with one day left in the quarter, just wondering if there’s a little bit more, I guess, numbers or ranges you can give how we’re tracking in billings, or maybe on the cash flow generation of the business. Again, one day left, I feel like the quarter should be fairly bait. So any help you can give us will be helpful.