As you know, it also depends on where people spend their time. So for example, you saw that, yes, we had improvement in gross margin, but then we also had increased sales and marketing costs, which is a result of people spending more time out in the market selling to create the $18.4 billion in sales that we have. So that’s why — again, we look at those components, but really at the end of the day, we always continue to run our business to op margin.
Dave Koning: Got you. Thanks for that. And then, maybe as a follow-up just to Jason’s question at the beginning on kind of the back-end loaded growth. If I just put in normal sequential patterns in Q3 and Q4, I get to about 2% constant currency, so the low-end of guide. Is there a scenario given bookings were really good this quarter that it actually, the progression sequentially in the back half of the year is better than normal and then that kind of gets to the better parts of the guidance range for revenue?
KC McClure: Yeah. So, I think, obviously when you do — what you’re just kind of talking about is a bit of the math. What I would tell is give you the year-over-year way we look at it in terms of our guidance, right? So, we had 1% growth this quarter with strong bookings, right, 1% revenue growth with strong bookings. We see Q2 shaping up the same way year-over-year. And again, just reinforcing that we do see fuel in our sequential growth in the back half of the year based on the transformation deals that we have signed. That’s no different than what we talked about at the beginning of the year. We’ve layered in then the sales that we expect as we go throughout. And that — there’s no difference to how we’re doing our range that gets us to the 2% to 5% range.
I would say at the top end of our range, again, as we said, last quarter, just when we said guidance, that when — to get to the top end of our guidance range, you would see S&C reconnecting with growth would be one thing that we’d see. And you would probably also see the mid- to high-single digits that we’ve been referencing consistently in managed services be more like high-single digits. So hopefully that helps, Dave.
Dave Koning: Yeah, that’s helpful. Thanks, guys. Nice job.
Julie Sweet: Thank you.
Operator: Your next question comes from the line of Bryan Keane from Deutsche Bank. Please go ahead.
Bryan Keane: Hi, guys. Good morning. I just wanted to ask on the clarification on the UK market in particular. I know the economy has been weak there for a couple years. So — and I know it’s been a call out for kind of the quarter. What exactly happened in the UK? And then, what’s the outlook for that?
Julie Sweet: In the UK, as you said it, it has been kind of challenge for a couple of years, and we have a big banking capital markets business there, and we’re really trying to pivot to more growth there in other areas. That’s why you saw the acquisitions that we did, for example, this quarter. And what we’re seeing is that it’s just taking longer than we anticipated to really move into the other areas. And banking capital markets, which we’ve talked about, has been more challenged, particularly in the UK. And so, it’s really about how long it’s taking us to pivot. And we think it’s going to take some time. So, I’m not going to call exactly when, but we do think it’s going to take some time, and it’s taking more time than we anticipated going into the fiscal year. So, we’ve got a good team. We’re on it. And again, this is where you’re going to see us do more acquisitions to diversify our business there as we reposition that.
KC McClure: Yeah. Maybe just also, Bryan, just for context, it’s about 6% of our overall business, a little bit more than $4 billion that we have in the UK.
Bryan Keane: Got it. No, that’s helpful. And then, KC, just to make sure we understand, the comments on the margins, given the movement in acquisition and the pick of an acquisition, there could be some fluctuations in given quarters. You’re not going to have it perfectly 10 — in the range of 10 basis points to 30 basis points per quarter. Any quarters to call in particular where it could fall below the range given the ramp of acquisitions and the ramp of investments? Thanks.
KC McClure: Yeah. I don’t want to really guide to the quarter because 10 basis points or 20 basis points on a quarter, that’s spend, Bryan, as you know. That’s kind of big and small in terms of the dollar amount that we’re talking about. So, we’re going to guide overall to the full year of 10 basis points to 30 basis points for the full year. And I just wanted to point out that we might have some periods where it’s just a little bit more variable than what you’ve seen us do over the years.
Bryan Keane: Got it. Thank you. Happy holidays.
KC McClure: Thanks, Bryan.
Operator: Your next question comes from the line of Darrin Peller from Wolfe Research. Please go ahead.
Darrin Peller: Hey, thanks guys. Just want to touch on headcount growth. I mean, it’s still — I think it’s still a bit decelerating. And so, what are the expectations going forward, I mean, just given the backdrop of an acceleration on the revenue in the second half of the year? And then, Julie, maybe we could just touch on the linearity of the business one more time. Just if we could revisit the mix of the kind of business you’re seeing now and the revenue per head you’d expect, or maybe just directionally, what you’d anticipate based on the mix we’re seeing and what demand is for?
