Jonathan Yong – Credit Suisse: Hey, thanks for taking my question and congrats on the strong results and solid season. I guess extending your comments about what employers are looking for how the hurdles to achieve performance guarantees risen, and during the selling season has the asked from employers to you increase more than normal, given the backdrop on enhancing benefits? And I just asked this to get a better sense of are you — are they asking more from you and just competitors just aren’t able to keep up and you’re just massively outperforming them. Thanks.
Rajeev Singh: I appreciate the question, Jonathan. It’s great to talk to you again. Maybe let me that in a little different way. I don’t think they’ve changed dramatically. I think a couple of things have happened though. We’ve lived in a competitive universe. Since we were, since the beginning of time. And by competitive universe, I mean, we lived in a universe where customers have extraordinary demand in terms of the return on investment associated with our solution. Since the company was founded, we’ve been putting fees at risk. Since the company was founded, we’ve been warranting cost saving on a comparative year-over-year basis. That’s different than most categories of health care benefits delivery. Most categories have looser ROI requirements and the one that exists in our category, I think what perhaps has changed, it’s not the rigor of which customers are asking for measurement and asking for accountability.
But instead the fact that we now have most of our competitions, there’s been a lot of new competition in the space over the last several years. Most of our competition has not had to live through 1 or 2 years of actually delivering improving, they can deliver against that value. Accolade’s proven history of having done so for 7, 8, 9 years and then doing so again in the last year, is proving to be a competitive advantage. Customers are seeing our history and our proven capacity deliver return on investment against some of our competitors, perhaps not being able to do quite as much as a driver of us getting more market share.
Operator: Thank you. One moment for our next question. Our next question comes from the line of William Hoover from Canaccord. Your line is open.
William Hoover: Yes, thank you. I’m on for Richard Close. Thanks for taking our questions, and congratulations on the quarter. So I was hoping you could provide a little more color on your health plan sales. I know I believe last quarter, I would say the health brand sales were double-digit percentage of the new ARR coming on. And I wonder if you could try to have more color on how that’s progressing and kind of expectations with new relationships, and the expansion of the existing relationships, maybe some timing for the future quarters on the expectations? Thank you.
Rajeev Singh: I appreciate the question. And thank you, William, for being here. When we break down the channels by which we deliver our service and then I’ll come back to the health plan as a growth vehicle. I don’t think we give a bunch of detail as it relates to the percentage of new ARR. But instead, what I can tell you is we’ve got our direct to employer segment, we’ve got our direct to via the health plan segment, we’ve got our government segment, and we have our consumer segment. Each of those, when we look at them have a capacity to grow in the 20% to 30% range, depending upon the market segment that we’re in. And what we’re seeing across each of those is the capacity to deliver our primary care business, our EMO business and our advocacy business.
We think each of those segments, and each of those categories have an opportunity to grow in the 20% to 30% range. What we’ve seen with our health plan business is particularly strong, delivering capabilities like expert medical opinion, virtual primary care, which is becoming increasingly important to that channel, and individual components of advocacy. As Shantanu spoke about earlier, the answer to the question around social determinants of health. And so what we continue to see with that health plan channel and hopefully this answers your question William is opportunities to go into the channel our existing partners with new capability, some of them that are a component of the advocacy solution we deliver to our customers, and a capacity to grow to help plan partners over time.
What we love about that channel, and we love about our midmarket offering and what we love about our consumer business is that each of those channels continue to sell even when the so-called selling season for health care in the enterprise segment stops. And so what that’s creating is less and less seasonality in our business and more and more predictability based on .
Operator: Thank you. One moment for next question. Our next question comes from the line of Jailendra Singh from Truist. Your line is open.
Jailendra Singh: Thank you and good afternoon, everyone. Actually want to ask about some long-term high-level question. One of the trends we are seeing in employer market is that more and more employers are trying to narrow down the benefit vendors they’re working with. Various vendors have talked about trying to get into more risk based arrangements so that to drive more engagement with these vendors. If these trends accelerate, how do you think about the value of employee — employee advocacy and employee engagement service you guys provide, if we do see these trends kind of moving forward and continue in the next few years. So just maybe give us some high-level thoughts on that from 3 to 5 years from now?
Rajeev Singh: I think that trend exists. Jailendra, first of all, it’s great to talk to you again. I got super excited to answer your questions, not forgot to be polite. It’s good to talk to you again and thanks for being here. That trend that you’re speaking to, do employers want to consolidate the number of vendors that they’re working with? Yes, and they have for the last several years. And so that trend already exists, will it accelerate into the future? I don’t know the answer to that question. But I think all times point to yes. If that’s true, do they want return on investment as a driver of value, because they’re tired of buying 10 different point solutions, all of them saying they’re going to save money, and yet their overall health care trend line goes up?
Answer to that is also yes, of course they do. And so are they going to be more demanding as it relates to return on investment guarantees and performance guarantees? I think the answer to that is also yes. Then the question becomes what do you need? Well, very clearly, you need an engagement engine to be able to get your people to the solutions that you want them to use in order to lower costs. You need a population health strategy that helps you understand which solutions you need. And you need a means of reaching that stratified population with the right actions. We call them through off actions that Accolade with the capacity to guide them to the solutions that they need when they need them at the right time at the right place. That is exactly what I believe does.
And so, in that context, if you already had a platform that was already based on — that was already measured on performance guarantees and return on investment, you would leverage that platform to answer the question that you just talked about. Jailendra, I think when we look at a 30% growth rate on bookings this year, I think what we’re seeing is the trends — the very trend that you’re talking about manifests in the behavior that’s happening in our space. And so if that behavior continues, it bodes well for our company.
Operator: Thank you. One moment for next question. Our next question comes from the line of Ryan MacDonald from Needham. Your line is open.
