We’re expanding those capabilities. You see all the strength we have in the accounting channel. But then I look at the ability for us to drive the integration of seamless financial back office when it comes to AP and spending expense. And over the — over time, obviously, the financial analytics and tools that we’re going to be bringing in from the Finmark acquisition. That is super exciting, and we hear that from customers all the time. They just want one place to do this. And so there’s lots of opportunities then, obviously, on the ad valorem capabilities, which we’ve talked about. And I think maybe if I just step back, the thing that to me is that I get excited about every day is that we started this financial operations category, solutions set, whatever you want to call it.
We started it 17 years ago. We just crossed $1 billion in revenue, which obviously is a milestone itself but we see no obstacles to this being tens of billions of dollars in annual revenue from a category perspective. And we’re working hard to be the leader in that category. And so we see this as kind of similar to how payroll has become its own thing, and there are multiple players in that, and we see this as an opportunity to continue to lead and define what does it mean to think about financial operations for SMBs.
Bradley Sills: That’s exciting. Thanks so much, Rene.
Rene Lacerte: Thank you, Brad.
Operator: Our next question comes from Darrin Peller with Wolfe Research. Please proceed.
Darrin Peller: Hey, thanks, guys. John, maybe just to quickly start with you. If we could bridge from this year in 2023, some of the major KPIs. Just remind us of the compare between this year’s factors that drove your results versus, again, just like-for-like the assumptions and guidance. Just trying to figure out how much of it was again, float income changes, how much of it again was macro conservatism that you’re building in? Just your assumptions for TPV. If you could just help us parse that out. Then part of that would also be to understand the step down from Q1 growth targets of, I think, 29% of the midpoint and just the bridge down to the 22% to 23% for the full year.
John Rettig: Yes. Thanks for the question, Darrin. So I’d say the key trend that occurred throughout all of FY’23 was the deceleration in spend on a per customer basis for TPV. And we think that’s a direct reflection of adjustments, our small business customers are making to the macro environment. It’s our view, at least our assumptions that, that adjustment process is going to continue throughout all of FY’24 like until we see clear signs that businesses have turned the corner and entering expansion mode, until then, we’re going to assume a more muted spend or moderated spend environment. And that’s what’s reflected in our numbers. That’s probably the most important variable. I think we’ll continue to make progress as we’ve discussed earlier on our monetization and things of that nature, regardless of the spend environment.
As it relates to the Q1 — Q4 to Q1 transition, the primary change there is around our subscription revenue. So embedded in our core revenue estimates are a step down in Q1 associated with the change in our contract with Bank of America. So if we look at that for the whole year, we’d be looking at high single-digits increase in subscription revenue versus our estimates earlier on the call. So that’s probably the biggest change on a sequential quarterly basis.
Darrin Peller: I guess I was trying to figure out from Q1 guide versus the full year decel, I mean, I assume a lot of that is the macro factors being embedded as the year progresses more substantially in comps, right, like float income comps and whatnot.
