Brian Schwartz: Congratulations on the quarter.
David Steinberg: Thanks, Brian. Operator, next question.
Chris Greiner: Thanks, again.
David Steinberg: Thanks, Brian.
Operator: Our next question comes from Arjun Bhatia of William Blair. Please go ahead.
Arjun Bhatia: Hey. Thanks, guys, and I will add my congrats on the quarter. David, you are obviously stressing that there is a need for efficiency with CMOs and the platform kind of plays into that perfectly. When you see the customers that are consolidating, is there a typical profile of customers that are looking to move off legacy platforms or point solutions, right? Maybe it’s the customers that have had a solution in place for 10 years, 15 years that they haven’t modernize, like, what do you typically see out there and is there an opportunity to use that profile to go out and target customers that are ripe for consolidation?
David Steinberg: Yeah. So, Arjun, first of all, thank you. Second, without question, what we are seeing is the vast majority of the customers that are looking for efficiency are currently using legacy and larger marketing clouds. And as I think I pointed out in my prepared remarks, most of these legacy marketing clouds, if not all of them, are subsidiaries of subsidiary sitting inside of very large tech conglomerates. And the truth of the matter is, they have been under investing in these assets for many years as a percentage of what they invest, because they are investing in their core products, and if I were them, I’d probably be doing the same thing. Our core product is us, right? We are bespoke to do this. So what we are seeing as contracts are coming up with the legacy marketing clouds, they are going out to bid at a much higher rate than we have ever seen before and we are winning.
At the same time, our ability to sit alongside of them during the existing contract and help them with some of our functionality. Meaning we can help with acquisition, while they are using a legacy marketing cloud for CRM and we can move through different functions with them. That’s getting our nose under the tent and then when they go out to bid, we are generally in the catbird seat. So to answer your question simply, it is large marketers who are using legacy marketing clouds as they are coming up for contract, we are seeing them move at a much higher pace than in the past.
Arjun Bhatia: Perfect. That’s very helpful. And one for Chris, I appreciate the Zeta 2025 free cash flow target. I am curious and I did notice that the conversion takes up — the EBITDA conversion picks up over the years, can you give us a sense of what levers you have available to drive that conversion higher on free cash flow over the next couple of years?
Chris Greiner: Sure. First, we have come a long way in a short period of time. So if you just look back a couple of years, you would see that the cash flow conversion was in the mid 20s call it and then ticked up to 28 this year at 42. So the tools we have in our tool belt that we have been using over the last several years, we will continue to use. And I will stress that $110 million isn’t at least just like the profit number just like the revenue number is for Zeta 2025. But we feel like we have got, we have learned a lot over the years getting much more efficient and how much drops from EBITDA to cash flow and expect that efficiency to continue and there’s a reason why there is an at least on it.
David Steinberg: Thanks, Arjun. Operator, next question, please?
Operator: Our next question comes from Richard Baldry of ROTH Capital. Please go ahead.
