Pat Goepel: Yes. And I’ll let, Eyal, if you want to jump in but just in general, what I would say is we specifically pivoted from ERTC. We’ve leaned into some of the value proposition around access to capital around getting good people to work as well as to be compliant. And I think that value proposition, we pivoted a bit away from ERTC, but that was always part of our value proposition anyway. And we’ve leaned into some new products and services. What we’re really thrilled is this first quarter payroll sales were up 68% over last year. And its evidence that, if you get the right value proposition, the right bundles, you can grow. Now, I mean it sound easy for Eyal to execute. There’s a whole lot of sweat that goes into that but Eyal, maybe just your comments on the market.
Eyal Goldstein: Yeah. Thanks, Pat. So Bryan, so specifically, we’re not seeing any pricing pressures or any issues around pricing for new deals and for up-sells within our customer base. We are seeing great growth. Listen, we’re — a lot of our competitors, and they’ve said it, they’ve decided to continue to go more and more up-market. So, we continue to see an underserved market under that 200 employee range and that’s helpful for us just in terms of deal cycle time, and the ability to win more deals. But we’re not seeing any pressure specifically on pricing there.
Bryan Bergin: Okay. Good. Thank you.
Pat Goepel: Thanks, Bryan.
Operator: Our next question is from Richard Baldry with ROTH MKM. Please proceed with your question.
Richard Baldry: Thanks. Maybe looking deeper at that 68% increase in payroll sales year-over-year. Can you talk about how comfortable you are with your sales capacity now hiring plans or goals throughout the year? How is the sales tenure trending? And maybe do you feel like that was geographically or vertically pretty broad or is there any concentration inside of that? Thanks.
Pat Goepel: Yeah. I think just from my level, I’m very pleased with the sales execution. I think, the pivot is probably took us about a quarter or so. And then I think in some areas we reference standalone tax or the new 401-K. The book-to-bill is probably elongated about a quarter. What I would say is the ability to hire, the ability to grow, the ability to sell. You know I think Eyal’s team has done very well, but Eyal may be as you see throughout the year, I think from a hiring we anticipate around 130. We’re probably you know we’re very judicious about who we hire and how many people were under that a little bit today, but maybe Eyal if you want to go back but that.
Eyal Goldstein: Yes, in — the goal would be to get to about 130 quota carriers by the end of the year. And I’m really happy with the pivot with some of the numbers Pat mentioned was 68% growth in those payroll sales. And just from a new payroll unit it’s almost 100% growth in that area. So those are great healthy ARR bookings that come with tax. They come with marketplace add-ons, they come with some of the additional 401k offering that we have and then the ability to cross-sell more to these customers once they go live, right? So a much healthier mix and our ability to pivot that quickly and in to grow that core business year-over-year is great and it’s only going to accelerate. So the reps that we have doing really, really well high productivity with are those — with leading with ERTC are basically on par this year from a productivity perspective but doing it with our ERTC.
with really good core payroll HCM ARR sales and that’s fantastic. That’s just going to grow for us as we get more people comfortable with for 401k, get more people comfortable with some of the tax credit solutions that we announced earlier this week and where we could just continue to capitalize on it.
Richard Baldry: May be switch back to the tax side on the Workday SAP area, maybe look at now with early wins obviously would build some referenceability. How big can that space be with just those two sort of end market players? I don’t know if there’s a way to think about the ARPU from your side to think about what a deal size would look like? And what’s your go-to-market ability to move the dial on those types of deals is or is it really sort of once they build some referenceable bases than their sellers will push the growth in that? Thanks.
Pat Goepel: Yes I think sometimes it has a phrase you know two comma deals. In small business where your average sale is somewhere a little over $3,000. You don’t adhere to comma deals. You know, we’re in some could – two comma pursuits which are really exciting for us. You know over time this could be $100 million business and you know that doesn’t mean you should spreadsheet that in 2025. But I will tell you we have an opportunity here both in treasury management and as well as tax filing. And it’s not just the two enterprise partners that are world-class companies. There’s the PEL group. There is in our software group. We have interest level is really, really high. And then some of the development that we’re doing on we really feel good about — our bundling of treasury management of tax filing et cetera. So it’s a $100 billion business unit by itself over time and we’re just getting started. Eyal, I don’t know if you’d want to highlighting? Thanks.
Eyal Goldstein: We the pipeline — the pipeline reaches multiple times year-over-year. I would our sales team is you know we’re fully staffed on that side from individual contributor perspective. And we’ve got folks that I am very confident in that have sold on this type of sale specifically before we understand the competitive landscape extremely well. We’re very, very excited about the modernization of the platform and what our CTO has done with the solution. And frankly, we’re getting pulled into a lot of opportunities rather than pushing our ways in and that’s always refreshing to see. And then on the deal size like Pat mentioned on the higher end too as you have six figure deals and then on the lower end probably you know four or five times what a normal payroll direct deal is today.
