Peter Christiansen: Thank you. I was just wondering if you could talk to the enterprise spending environment. I know you mentioned pipeline looks really strong, but it sounds like the life benefits when enterprises are perhaps a bit more cost conscious or maybe the inverse. I’m just trying to understand what dynamic do you see really driving that pipeline? Is it cost savings or is it just other kind of aspects? And then, just as my follow-up, look back to gross margin really outperform this quarter. Just wondering if we could dig into that a little bit. What drove some of the outperformance? Thank you.
Stephan Scholl: Yes, sure. Thanks for the question. And I’ll try and keep this very concise because I can talk a lot about this. We’ve been on this multi-year journey and COVID as you saw clients just through everything at employees around these point solutions. And we knew three years ago, three-and-a-half years ago when I got here, that was a bandaid, right? What employees want is more simplicity, more clarity in helping make better decisions. And in fact, all that, most corporations did is add more complexity to the whole process of making the right decisions around keeping them healthy and financially secure. And so we’ve continued to prove out the value of a front door, which is our Alight Worklife platform integrating not only our data, I think that was a big shift culturally for us, but even for the market was, we’re willing to integrate our own data with our competitors data in order in the name of platform to give the best set of information for people to make better decisions.
And by the way, in my last company, I mean everybody knows my background. We did exactly the same thing for how to drive digital transformation in the business world, whether it be Ferrari or Nike or other major corporations. We’ve all seen how digital disruption has really impacted the B2C world in that sense, none of that happened in the last decade, really on the employee engagement side of things. So we’re just taking an old playbook that has worked really, really well as we’ve seen with all the SaaS providers. And we didn’t put a label of SaaS on it because it’s too complex. We put a label of BPaaS on it, Business-Process-as-a-Service. And that’s a strong combination of products and software together with services that really help us drive a platform play.
And so every client we talk to in the large scale is looking to now consolidate and simplify that big spend they’ve had over the last four years. And we’re the beneficiary of that, right? So the good news is, we’re in the decision room in helping clients get rid of point solutions where they’re not needed, help them drive more campaigns and capability to get better value for their spend. I mean, when you think of, it’s not a mystery. When you think of the rates of engagement in the low-single-digit percentage points, it doesn’t look, you don’t have to look very far to see how difficult it has been for clients to get value for their investments because employees just aren’t using it. So our engagements rate are double, triple, quadruple in many cases when you integrate the data sets in Alight Worklife.
So we’re at — we’re right in the middle of an exciting chapter by being on the front lines with clients helping take out some of those costs. Hopefully that helps?
Katie Rooney: Yes. Peter, just on — and Peter, I was just going to address, first, thanks, glad to have you on the call. And just on the gross margin front, we talked a lot about some of the key investments we made last year and we continue to make into this year. But I think as we said, we have to see a return on those investments and they will come through first in gross margin in terms of our go-to-market, in terms of technology investments, right, how we’re delivering for our customers. And so that’s really what you’re starting to see play through the gross margin.
