Paul Ginocchio: It does not. Historically, we’ve included Live and Notes. We will factor that in as this year progresses. There are Go users. We’re still working to make sure that we conform to how we’ve done and historically done it.
Elizabeth Anderson: Got it. And then in terms of just talking about the Go Assist version, how do we think about the sort of growth margins and maturity for that? It’s sort of between the sort of premium version, should we still think of them being above 60%? That’s still like the right way to think about that gross margin profile of those combined Go and Go Assist products?
Paul Ginocchio: Yeah. We’ve stated that Go would be north of 60% gross margin product, and we’ve said historically that Augmedix Notes was 55 to 60. So right in that area where Go Assist and hopefully over time as we scale, it gets better.
Elizabeth Anderson: Okay, perfect. Super helpful, guys. Thanks so much and congrats again.
Manny Krakaris: Thank you, Elizabeth.
Operator: Our next question comes from the line of Aaron Wukmir with Lake Street Capital Markets. Please proceed with your question.
Aaron Wukmir: Hey, good afternoon, guys. This is Aaron on the line for Brooks. Congrats on the strong quarter. So I guess do you feel that the open platform partnerships have been materializing to your likeness and generating some impact with your customers? If you could just give us a sense as to what you’ve been seeing there, that would be helpful.
Manny Krakaris: Sure. Hey, Aaron. We haven’t deployed anything yet. We’re still developing the product, but if you recall, the impetus for doing this came from our customers, in particular HCA. So we anticipate that HCA will be a source of demand for these particular products, and they’ll be on our platform. We will book the revenue, but we haven’t completed the integration, for example, with the Sullivan Group. It’s underway. That work is underway. Work is underway with Ellipsis, the behavioral health application. So those are underway. They will be deployed this year. But there is no response yet from the market because they haven’t deployed.
Aaron Wukmir: Okay. Thanks for that clarification. And then I guess as you start beginning to rollout Go, do you expect any significant product make shift? I guess just trends that you’re expecting throughout the remainder of the year will be helpful as well. Thank you.
Manny Krakaris: Well, you have to, I think, distinguish between users and revenue. And from a user perspective, yes, I do expect there to be a shift in favor of Go as it grows faster than our other products, our legacy products. From a revenue perspective, because the ARPU is so much lower for Go than it is for our legacy products, I don’t think you’ll see a similar realignment of the revenue mix in ’24.
Aaron Wukmir: Gotcha. Okay. That is helpful. Thanks, guys.
Manny Krakaris: You’re welcome.
Operator: Our next question comes from the line of Allen Klee with Maxim Group. Please proceed with your question. Allen, your line is live. Do you have the line on mute?
Allen Klee: Hi. I’m so sorry about that. Hello. The competitive environment, can you discuss a little? There’s been some companies that have gotten funding and also your comments on a bunch of people doing AI models. Two things about that. One, would that kind of imply that, like, there’s going to be pricing pressure for the main players in the industry coming up? And along with that, like, if somebody, if HCA chooses — if they have a doctor that chooses Go, are they displacing one of your services, like mine [ph], or more often do you think they would be displacing a competitor?
Manny Krakaris: Hey, Allen, good question. So just broadly in terms of the competitive landscape, yes, there have been several newcomers in the space, which is what we anticipated well over a year ago. All that does is basically reinforce the fact that our belief that this is a very large market, very attractive market, and therefore it’s going to attract competitors and venture capitalists who want to take advantage of that big opportunity. Having said that, the companies that you’re describing that have announced large raises recently, one in particular that’s probably commanded most of the airwaves has 65 employees. What they still need to do is build the infrastructure that is necessary to support wide-scale deployment of their product.
We’ve made that investment already. So we’ve got the infrastructure in place to deploy widely at scale. And so we anticipate that these smaller companies, these newer companies, are going to have to do the same thing. They’re going to have to make those investments in infrastructure to be able to scale. Now, the second part of your question, sorry, refresh my memory.
Paul Ginocchio: Disposition.
Manny Krakaris: So in terms of cannibalization of products, we haven’t seen that, and we don’t anticipate it, primarily because at HCA in particular, there’s little Lives that’s there to be displaced, number one. So it’s mostly greenfield at HCA, I mean, vastly greenfield at HCA, so there’s little opportunity for any kind of cannibalization. But more broadly across all of our customers, we don’t think so. We believe that Go will cater to a distinct persona and price point in the market, quite different from the persona and price point of Live customers. And we tested this belief when we launched our Notes product a couple of years ago and found that there was virtually no cannibalization of our Live product when we launched Notes at an ARPU that was less than half that of Live. Does that answer your question, Allen?
Allen Klee: Yes, thank you. One last question. Your guidance where you said that the first quarter will be lowered by 300 basis points due to some temporary costs related in Bangladesh and cost conditions in India. Could you explain a little what you think the impact of these extra costs that you’re taking on? I mean, it’s felt for some people that if you’re really a technology company, why haven’t you been profitable? It seems to have, like, a lot of costs. And maybe you’re addressing that with what you’re doing in India. I don’t know. Could you help us understand that? Thank you.
