Eric Martinuzzi: Yeah. I wanted to better understand the uplift in the 2023 guide. We’re up $6 million at the midpoint versus where we were 90 days ago. I know you’ve had success pretty much across the product line from HR compliance to tax filing to ERTC in the marketplace. But the lift in the full year outlook, can you pin that down to one or two capabilities that you got?
John Pence: In my perspective, it’s the same things we keep talking about, Rich. I mean, Eric, the float back when we gave that guide, Fed funds continue to go up as an example, I think we continue to see strength in the marketplace that we were a very early stages when we get that initial guide and we feel like it’s really starting to kick in. So I mean those are just two examples of things that we’ve gotten better confidence in since the last time we gave guidance.
Eric Martinuzzi: Okay. And then…
Patrick Goepel: And then, Eric — and just lastly, Eric, I think the sales momentum, I didn’t forecast 234% year-over-year growth in the fourth quarter. So that gives us comfort that we have a higher jumping off point. So — but good momentum. I think it will continue. I think we’re early days on some of these initiatives, and we thought it warranted that uptick.
Eric Martinuzzi: Yeah. No, I’m not going to complain about a guide up for the year. The other thing, I just wanted to get a layer deeper on the investments you talked about because at the same time, you’re talking about $5 million in efficiencies. You’re also talking about investing in the business. You had mentioned the sales headcount at about 90 reps coming out of 2022. Where do you expect that to be at the end of 2023?
Patrick Goepel: Probably slightly over 100 or so from a sales rep perspective. We’re also investing in engineers and development resources. We feel that, that product and extension of the product is really important. And if you think about the marketplace, we’re going to add partners each quarter throughout the year. So we’re investing in some of that work as well. And then you take that and then you balance it with operational efficiency as we’re building a national business. Some of the initiatives we talked about, SKUs are going from 2,000 to 200 bank accounts, 125 to less than 20 instances of our payroll platforms in AWS have been standardized and in the process of standardizing, phone systems with chat features and a national system no matter where you are, are all things that we’re getting efficiencies.
And then, one thing that I’d point out, and it really manifests itself in the fourth quarter is September 30, 2021, we made two acquisitions. I believe at the time, we’re somewhere around 544 employees or so. And I think we ended the year something like 501 according to our 10-K. So when you look at that, those efficiencies came in, but the beauty of that is we’re not slowing down the investments in the front end of business or development side of the business. We’re just getting better and more efficient at what we do. And then I’d remind you, seven years ago, we weren’t even in this business. So to build what we’re looking at is $106 million, I would say, 20% adjusted EBITDA by 2024. We’re just getting more and more confidence that the model is starting to get hardened, and we think we have the opportunity to continue to grow again.
Eric Martinuzzi: Got it. Congrats on the quarter and the outlook.
Patrick Goepel: Thank you, Eric. Appreciate the support.
Operator: And thank you. And our next question comes from Jeff Van Rhee from Craig-Hallum. Your line is now open.
Jeff Van Rhee: Great. Thanks for taking the question. Just exceptional performance, you guys congrats. So a couple for me. I guess on the upside, Pat, would you contrast the momentum and particularly the upside relative to expectations you saw along the lines of whether more or less of it came through licenses versus direct business. Do you see a meaningful difference in the momentum in the different channels?
