Pat Goepel: Yeah. And just on 401(k), I think first of all, we pivoted and launched on almost a week or two, right? We had this plan, but we moved into sales motion and marketing motion very, very quickly. I would say right now we’re probably a couple months behind where I’d like to be on the marketing sales perspective, but we’re cleaning — we’re really starting to pick up the pace. On the book, the bill, I would say just based on it’s a new business for us, we’re probably about three, four months behind. Well, over time, what we want to be able to do is sell and start a 401(k). Probably I’d like to bring that number in about 60 days. It’s somewhere around 120 right now. So we’ll go through that just as we grow and learn and get the muscle memory, but that’s where exactly where we are in the process.
Jeff Van Rhee: That’s helpful. I appreciate it. Thanks, guys.
Operator: Our next question comes from Vincent Colicchio with Barrington Research. Please proceed with your question.
Vincent Colicchio: Yeah, Pat, curious. Can you characterize your employee base? Are they hiring currently? What does that look like?
Pat Goepel: Our employee base or the employee base, obviously our clients, I would say we’re looking at that number. We’re probably flattish. In some areas, they’re hiring. In some areas, basically they’re holding. I would say access to capital in the small business is still the biggest issue. Some of the regional banks aren’t lending and interest rates are a little bit high. So, but on the same token, getting quality people is still a concern. So from my perspective, it’s been flattish. I’d love to say it’s — I do think as we connect more people to small businesses, it’s got a shot to go up 1% or 2% because there still is hiring demand. I would say they’ve been unable to execute or unable to get the capital they need to grow, but that’s exactly where we are today.
Vincent Colicchio: And how did your bookings break down between new and existing clients?
Pat Goepel: We’re, Elay, I’ll let you answer that, but I believe we were, well, go ahead.
Eyal Goldstein: Yeah. We’re still right around 70% is new business and 30% of the bookings is cross-sell. So, again, huge opportunity for us on the cross-sell side, but the majority is still new business.
Pat Goepel: And where I’d like to go with that is, and we did want to highlight in our release around some of our technology initiatives, this common user interface with identity access management is going to be really good for us as far as the adoption around the marketplace, adoption around cross-sell. It allows us to get into event-driven marketing in a big way. So, we anticipate a lot of growth from that over time. Now we’re rolling this out, and there’ll be some learnings here over this quarter and next. But as we get really solid with that, what I’d like to do is take that 70, 30 or so new sales more to ultimately, maybe reverse it. Now that’s not going to happen overnight, but I think that’s the opportunity we have. And this technology foundation that we introduced this quarter and some of the subsequent events, that’s exactly where we’re going. So feel good about where we are. And then the new logo has been very strong while we get to that point.
Vincent Colicchio: Thanks, Pat. Nice quarter.
Pat Goepel: Thank you.
Operator: Our next question is from Eric Martinuzzi with Lake Street. Please proceed with your question.
Eric Martinuzzi: Curious on the decline in the cash balance from Q4 quarter end to Q1 quarter end were down $7.1 million. Can you help me bridge that?
John Pence: Yeah. I think I had a couple of things happen. As you know, the first quarter is always seasonally impacted by W2 revenues. We collect those funds, usually in December we defer that revenue. And we recognize that revenue in Q1. And also we pay a lot. We have a lot of annual events that happened in the first quarter whether it be bonuses or we have a sales kickoff. And so there’s — there’s some abnormal spending that always happens in the first quarter and in the fourth quarter is a little bit inflated usually because of that W-2 cash coming in. And then obviously we spent some money on some acquisitions as well.
Eric Martinuzzi: How much did you spend on the acquisitions in Q1?
Pat Goepel: I don’t have — I don’t have it right in front of me. I think it was a couple of million bucks going from — order bank from my memory.
Eric Martinuzzi: And also in areas you know?
Pat Goepel: No I was more net all in, but because we had the people or the people strategy deal there was an equity component in that. So that was — that piece of it. And then the other thing is the vendors spend. We do have some annual renewals that on it all come due in the first quarter. And then this quarter specifically we had two events where normally we have one. So now that — we’re pleased with the cash this quarter, but we do drain a little it of cash first quarter and then typically we’re better as we go through the year.
Eric Martinuzzi: Last year your cash was up four million between Q4 and Q1 and this year its being down $7 million. But I’m just not.
