Peter Heckmann: Fair enough. I appreciate it.
Katie Rooney: Thanks, Pete.
Stephan Scholl: Thanks, Pete.
Operator: The next question comes from Tien-tsin Huang of J.P. Morgan.
Tien-tsin Huang: Hey, good morning. Just the timing of the annual revenue that impacted the results in the quarter, did you quantify that? And is that a client-side issue, just with them being a little more cost-conscious, curious how broad-based that was as well.
Jeremy Heaton: Sure. I’ll take that one. It’s Jeremy. Good morning, Tien-tsin. So just to clarify, as we’ve seen in the notes this morning, just this was, the impact, let’s call it $15 million in the quarter, is primarily in our non-recurring project revenue within employer solutions. So very minimal really as you think about, really where our focus is on the high-value employer solutions revenue, the recurring revenue, very minimal impact in terms of in-year. But this is more of, as we ramp through annual enrollment, that non-recurring base, which again is a big driver for us as we look at going into Q4, is really where we saw some of that impact. Once again, on the larger transactions, what drives the recurring revenue base, that’s really the focus of the 22% that you saw in the BPaaS revenue growth within the quarter.
But again, 95% under contract for the year, and have a good plan in front of us in what we can see from a visibility standpoint in terms of getting through 2023, and no impact, importantly, as well as you’re thinking through 2024 in the midterm outlook, because once again, $2.7 billion under contract. It’s a record for us through the third quarter, and so I feel really great in terms of where we are from a bookings perspective there.
Tien-tsin Huang: And when you talk about 95% of the business under contract, at this point we’re what, November 1? I would imagine that’s…
Jeremy Heaton: As of the end of the third quarter.
Tien-tsin Huang: As of the end of the third quarter?
Jeremy Heaton: Yeah, yes.
Tien-tsin Huang: Right. And so I know that year-end has a little bit more in the way of the non-recurring. Any additional comment on visibility there? I know based on the range of outlook, it sounds like it’s reasonably visible.
Jeremy Heaton: Correct, correct, yes. We again, like the shorter sales cycle as Katie mentioned, so there’s really three aspects within the fourth quarter which drive that non-recurring base, which is the project work within Employer Solutions, our professional services deployments, as well as the retiree health business. But again, we’ve got a pipeline, we’ve got a track record of being able to execute within the fourth quarter, and really those are the elements for us in terms of reaffirming the ‘23 guidance.
Stephan Scholl: I think that the key piece, just to pull that out is, within Employer Solutions, the high-value ARR-type business that has continued to see really good strength, and that’s what gives us the confidence into not only Q4 especially, but into ‘24 and our midterm guidance to continue to support that.
Tien-tsin Huang: Right, right, just the quality side, I get it. So just one more, if you don’t mind. I apologize for the third question. Just on the BPaaS booking side, I know it was asked, but it looks like you need about the same amount you saw in the third quarter to get to midpoint for the full year. So same question on visibility there, and I can’t recall how fourth quarter from a seasonality standpoint is important here, including what happened last year in the fourth quarter. Thank you.
