Pat Goepel: And then lastly we brought in an operational leader as staff that work [indiscernible] in the past. He’s run a $100 million plus business in [indiscernible]. We really beefed up our personnel, the operational staff. So, we have the right technology people, right operations, the right salespeople and then the right market at the right time. So, this is going to be a foundational growth item. It’ll take a while because of book-to-bill and because there are enterprise sales and in growth.
Richard Baldry: We don’t know the internals are base numbers, sort of, curious without a lot of commitment to this, but if the payroll sales were kept up at a clip like the 68% year-over-year, would that imply or a longer term sustained ability to keep up the 25% organic growth rate? Or is that number sort of faces tough comparisons and by definition have to come down a little bit over time?
John Pence: I’ll give you my perspective Rich. I don’t think we’ve ever claim that this is going to be a 25% organic business. We know that it’s going to be a combination of that roll-up strategy and the organic is it was going to get us to scale. So, I would say we’ve been pretty consistently since I’ve been here that we think we’re going to be a double-digit organic grower. I’m not sure we’ll be at the 25% level. But I think when you combine with the inorganic side of the house and do you think that’s achievable?
Pat Goepel: Yes, and then the — yes, the only thing I’d say implicit in the guide is acquisitions and organic growth, but it’s clearly going to accelerate through the year. And then we’ll be in a really nice position where we’re high 90s repetitive growth that as we launch in 2025, we’ll come when there’s a lot of momentum. So, that’s what we’re planning for and that’s our [indiscernible].
Richard Baldry: Great. Thanks.
Operator: Our next question comes from Jeff Van Rhee with Craig-Hallum Capital Group. Please proceed with your question.
Jeff Van Rhee: Great. Thanks for taking my questions. Several just want to clarify on the 68% of payroll sales increase, are you — is that the comparable number to what you would typically quote is your total bookings year-over-year for the quarter?
Pat Goepel: Yes. No, Jeff we had some noise there with ERTC and some of that. Rather than kind of parse everything out, we just said this year where especially the first three quarters. We have all these comparisons with ERTC. We have some bundles whatever. This was just you know — obviously we’re a payroll business and it’s a good majority of our revenue. We wanted to highlight that because you know that some that I think people will feel really good about. And it’s clearly an emphasis with our bundles whether it’s for 410(k) or some of the new products that we have.
Jeff Van Rhee: Okay. And then on the prior acquired revenue target was $10 million to $15 million. I was unclear, it sounded like you said you’re running a little bit ahead of where you thought you’d be. Are you still expecting to be in that $10 million to $15 million of annual acquired revenue?
Pat Goepel: Absolutely. I would say we’ve had a very strong first quarter first half. Those — just to start if we didn’t acquire anybody after that, we’d be very close to the low end of the range. So, we’ll continue to acquire into this, but yes we’re on pace.
John Pence: Yes, I’ll just — I’ll make a quick comment on this and Pat can add to it. I think we’ve talked about it I think on some of these calls previously, there’s a unique situation kind of going on in the industry, right? It’s kind of opportunistic for us. But with the changing regulatory landscape, a lot of the states are now saying that payroll processing businesses need to be regulated like a bank. And so when we were I think pretty early on — I think we resisted it because we thought it was pretty aggressive move off at this stage. But I would say that three years ago, we decided to embrace it. And so we’ve gone down a path to get a license. It is going to be hard for a lot of the smaller players, some of our resellers to afford that compliance.
That’s why we launched the treasury management solution. But again, I think, a lot of people are trying to decide is it something they want to continue on with. And that was a [indiscernible]. I think I think we’re going to have a lot of opportunities over the coming months and to kind of take people into our arms. So, that’s just another kind of backdrop as regards to acquisitions.
Jeff Van Rhee: Yeah, definitely helpful, John. I was going to go down that path. I know, obviously, the 401(K) Secures Act has been an area of focus in Treasury also. Just on those two avenues, any other quantification you can give to give us a sense of the ramp in deal counts, bookings, pipeline, just any quantification in those two areas?
John Pence: I’ll speak to Treasury, and then I’ll let kind of Pat speak to 401K. We’ve, you know, we launched this with a partnership with J.P. Morgan. We have people that want to buy from us right now. We’re just kind of holding them off as we get it up and running. We want to make sure it’s bomber solid before we put them on. So I think we’re holding that up a little bit just with our getting it launched. But so I think there’s good demand, almost unsolicited demand for that product. And then I’ll let Pat kind of talk on 401(K).
