Erica Gessert: Yeah. Sure. This is, Erica. Maybe I’ll take this one, Hayden can — obviously can add anything. So I would say that we haven’t seen any real material improvement in the macro environment in Q3, and the external macro trends continue to be — I wouldn’t characterize as uneven and a little difficult to anticipate, and honestly, sometimes even changing month to month. And this is all then just helps the customers tending to keep their purse strings a little bit tighter and we’re seeing this especially on the large business side. Even despite this, what — we’re focused on what we can control. And as we said in the prepared remarks, we continue to add active clients up 2% year-over-year and quarter-over-quarter and our new enterprise logo growth was up 21% quarter-over-quarter.
So we’re really pleased with our ability to execute in what we consider to be a kind of continuing uneven environment. Another really important point is that we are increasing our revenue from monetization strategies like the ads products that we talked about again in the prepared remarks. These are things like Boosted Proposals and also subscription products like Freelancer Plus. (ph) And these aren’t just bringing revenue to Upwork or increasing customer lifetime value. They are also driving efficiency on the platform and enabling talent to get jobs faster. Our talent who use Boosted Proposals, for example, have about 25% higher chance of securing a job. So we’ve said for a couple of quarters now that we’re really focused on uncovering ourselves from the macro environment, and I think our results really do display the success in doing that.
So really proud of what we’ve been able to do and we’re committed to both, like I said, improving revenue growth rates year-over-year and expanding EBITDA margin.
Hayden Brown: Yeah. And Logan just to address the question about geo and client side. I don’t think there is anything notable to call out there, nothing really major this quarter. I’d say our very small business clients actually are the ones like leading the pack in terms of their performance, but nothing specific to mention. In terms of the conflicts in the Middle East, obviously, this is incredibly heartbreaking and we are really — just our hearts are with everyone who is impacted by this terrible tragedy. It’s actually shocking and deeply sad to see these devastating events unfolding and impacting civilians in such a horrific way. We have a very small number of team members across the region, whose safety and well-being we’re focused on. We don’t anticipate any impact to our business as our GSV from that area is negligible.
Logan Reich: Thank you very much. Appreciate it.
Hayden Brown: Yeah.
Operator: All right. Thank you. One moment for our next question next question. Next question comes from the line of Bernard (ph) McTernan of Needham and Company. Your line is now open.
Bernard McTernan: Great. Thank you for taking the question. Just wanted to double-click on the ads marketplace. Can you go a little bit deeper into this opportunity? The shareholder letter spells out how it’s driving conversion, but how much is this being used right now? How much you think it could be used in the future, and if it could provide upward pressure on take rate over a longer period of time? And then just to follow up on the take rate. When should we expect to see the full benefit of the pricing changes in the take rate? And if it’s possible to decouple those two in terms of the sequential growth in the take rate this quarter?
Hayden Brown: Sure, Bernie. We have a lot of runway on this ads and monetization area of the business. And we’ve been building the strategy over the last couple of years and really starting to see their fruits. As Erica mentioned earlier, one thing that we love the most about this is it’s not just about monetizing the business. It’s about doing so in a way that advances customer goals around talent being discoverable, people who are really excited to get jobs and are qualified to do so being found factor in the marketplace. So we’re seeing data such as talent using Availability Badges. We’re seeing 50% more invites than those were not. Clients are 62% more likely to actually get their invoice accepted or invite those or work with those who are badged talent.
Boosted Proposals is another feature here that is increasing professionals likelihood to get hired by approximately 25%. So overall, this is actually still early in the strategy because there are other features and functionality around different types of ad products as well as optimizing those we’ve already launched, which we think will provide further opportunities in 2024 and beyond. So that’s kind of the bigger picture. We really are focused on efficiency, the equity ability and the optimization around these features, and certainly, I think that’s a plus for both customers and for our shareholders over time.
Erica Gessert: And maybe just a little bit more color on your question on how to think about the dynamic between the flat fee pricing structure and the ads a monetization products. When we — so we made the transition to the simpler pricing structure in May of this year. And when we did that, we said that we would — we expect it to get accretion from take rate over the next four quarters. And just as a reminder, at the end of the year is when the 5% tier moves up to 10%, and of course, we’ve given a long runway to those — the talent at 5% to have time to adjust and price appropriately with their clients. But that also means that we will get additional accretion from the pricing change itself into the first half of next year. We’re not breaking out the exact dynamics but we did say at the time when we made the price change in May that over the next several quarters we get call it around about a point of total accretion. And so that kind of remains consistent.
Bernard McTernan: Perfect. Thank you both.
Operator: Thank you. One moment for our next question. The next question comes from the line of Brent Thill of Jefferies. Your line is now open.
John Byun: Hi. This is John Byun for Brent Thill. Thank you. Wanted to go back maybe a little bit on the macro, and you mentioned it’s been hard to predict month by month. Is there anything you’ve seen in terms of monthly linearity including through, I guess, first week of November so far? I mean anything notable other than maybe for seasonality?
Hayden Brown: Yeah. Sorry. Can you — I just want to make sure I understood the question. You’re asking in kind of — in Q4 if we’re seeing any kind of changing dynamics. Was that the question?
John Byun: Well, I mean, a month — each month of Q3 as well as through Q4 so far. Yeah.
