Dave Sylvester: Well, it looks pretty good. I’ll start with opportunity creation, which has been okay. Not great, but not bad. But our win rate among the opportunities has been quite strong for the last several quarters. I think Sara has mentioned that previously in either quotes in the earnings release or in our comments on the analyst calls. And that has helped our high confidence part of the pipeline be higher than prior year. So, we feel pretty good about that. We’ve got a nice backlog of projects that we’ve either competed for and already won and they’re in our pipeline, or that we have high confidence in because it’s a deep customer relationship, long history, and we think we’re positioned well. So, when we look at our high confidence portion of the pipeline, which is frankly the most important part of it, it is showing growth over prior year.
Greg Burns: Okay. Great. Thank you.
Operator: Your next question comes from the line of Steven Ramsey from Thompson Research Group. Please go ahead. Your line is open.
Steven Ramsey: Good morning. Maybe to clarify on the delivery issues that impacted the quarter, first, I assume deliveries are better year-over-year. Maybe you can confirm that. And then, is this a cost issue or simply timing? And then, maybe a third one to add on, what are delivery times now versus pre-pandemic levels?
Dave Sylvester: Yeah, Good question, Steven. They are way better than they were a year ago. I don’t remember exactly what they were in the third quarter, but they peaked at like 14.5 weeks. And these again are a function of a lot of things. It’s what is the requested delivery date by our customer and then how do we acknowledge it based on our lead times and our supplier reliability. So, it peaked a year ago, I think in Q4 of FY ’22 maybe at 14.5, and that compares to pre-pandemic levels that were closer to 8.5 weeks. We had been trending down from the 14.5, and we were at 10 — I think, averaging 10 weeks inside of our Americas core business in Q2. We thought it might come down a little bit into the nines this quarter and it stayed at 10.
Steven Ramsey: Okay. That’s helpful. Thanks for clarifying that. On the 2025 outlook, how much of that growth is driven by large corporate customers, how much of that is other verticals and some of your long-term push to diversify that customer base?
Dave Sylvester: Well, I don’t know that today I’m ready to talk about targeted growth rates across our vertical markets, but I will say that we expect large company to continue its momentum, which really began earlier in the fiscal year, and we believe is continuing to trend and the positive trend, we believe, is correlated with a stronger return to the office and more activity that’s being driven by people being present and identifying needs to change. That said, I think we’ll also target and see growth across our vertical markets. I don’t know that we’ll see it in every vertical market. We’ve talked in the past as an example, for healthcare, we’re seeing growth on the clinical side, but declines on the admin side. So, in total, I don’t know yet what we’re going to target for that vertical in particular.
I’d be surprised if we weren’t targeting growth in education. That remains a very strong positive vertical for us, and things are indicating that — trends are indicating that we should be able to target growth across that vertical. But to what degree and how that compares to large co, I don’t know that today. Might be more detail that we’d be able to share in March.
Steven Ramsey: Sure, totally understand. Last thing from me. Thinking about the next leg of growth for the office furnishings industry, do you think there’s an incremental catalyst beyond just RTO grinding forward, or is it just kind of the continued momentum of more workers being back in the office more days in the coming months and years?
Dave Sylvester: Well, maybe I’ll start and then I’ll let Sara pile on. I’ll just quickly say yes. I mean, I think not only do people need to get back into the office, I have a strong belief that people are better when they’re together. But the office is not configured to support the new ways of working, which I’m sure Sara wants to talk more about.
Sara Armbruster: Yeah. No, I’ll jump into that, and I would agree. I think the answer is yes. I mean, certainly, return to office will, we believe, drive continued interest in our business and our sector. But beyond that, as Dave just said, I think offices, in general, are not configured to support the ways people are looking to work. So, whether that’s privacy and focus, whether that’s supporting collaboration, whether that’s helping rebuild social connections and personal engagement and well-being, I think all of those things are kind of open questions that lots of organizations are thinking about and trying to make investments in support. I would also say even beyond that I think the future is going to be no different from the past in the sense that there will continue to be broader, I’ll say, macro-level trends that I think can also provide support to our business.
For example, I was in Mexico City with our team down there a couple weeks ago, and they were talking about how much the near-shoring trend is driving opportunity for them as companies from around the world look to make different geographic choices and that’s leading to a real boom of opportunity. I think we also probably all have lots of really interesting questions about how things like the growth of AI is going to change businesses and cause need for hiring or different kinds of jobs or entire new companies kind of cropping up. So, I think we’re always also looking at those kinds of changes in the broader landscape and thinking about how we can target our innovation and our solution to help organizations as they adapt to those things. So, I think there are likely to be multiple things happening that provide potential for growth for us across our business.
Steven Ramsey: That’s great. Thank you.
