Sheila Kahyaoglu: Okay. Thank you.
Operator: Thank you. One moment please for our next question. And our next question coming from the line of Bert Subin with Stifel. Your line is open.
Bert Subin: Good morning.
Horacio Rozanski: Good morning.
Bert Subin: Hey, Horacio, just following up to your comments there, you said you’re seeing more interest in AI on the Civil side. As we think about your comments from last earnings call, have you seen any marked change in AI interest from customers? And if so, where is that coming from? Is it Civil, Intel, Defense or some combination?
Horacio Rozanski: I think the short form of the answer is all of the above. This is a topic that, as you know, we’ve been investing in and thinking about for years. At the beginning, there was sort of, I’ll call it more curiosity than interest, then you turn to interest, then it turn into demand. Our AI team is growing extraordinarily fast. And it’s – this is permeating really the entirety of our business, I can’t say this with absolute precision, but essentially, all of our largest contracts have some form of AI in scope or the possibility for AI in scope, I don’t think our visionary clients who write a 5 or a 10-year contract now that does not include these capabilities because we all know they’re transformational. And Booz Allen, I’m proud to say, is at the forefront.
Bert Subin: Great. And just following up, Matt, to some of your comments there around guidance. You achieved 30% of the midpoint of your FY ’24 ADEPS guide in the first quarter which compares to 25% last year. As you mentioned, sort of those three items, which of those are you most focused on to hitting or beating your guide? Is it mainly the bookings side this quarter as you lose the Intel contract later in the year? Or are there other discrete headwinds you’re watching?
Matt Calderone: Yes, I’ll pick two of the three. It certainly Q2 sales is critical. It’s – as we said in the script, it’s important every year, particularly this year, given the second item I’ll highlight, which is the funding uncertainty. And really, our Q2 sets us up not just for this fiscal year but for next fiscal year as well. And that’s what we’re trying to do, not just on the bookings side, but obviously, with headcount as well as produce the year-over-year organic growth that we desire and our investors expect.
Bert Subin: Great. Thank you, Matt, and thank you, Horacio.
Horacio Rozanski: Thank you.
Operator: Thank you. And our next question coming from the line Matt Akers with Wells Fargo. Your line is open.
Matt Akers: Thanks for the question. Good morning. I wanted to ask about how you’re thinking about capital deployment kind of as we go through this year, obviously, the settlement is a little bit of a drag on cash and how you think about maybe balancing that with maybe using the balance sheet to continue repurchases?
Matt Calderone: Yes, Matt, I’ll start and Horacio may add to it. Certainly, it’s a significant payment. So of course, it has an impact. But that said, we’re still very much committed to using the balance sheet to drive incremental strategic and financial value. We have the balance sheet strength to do that and organic performance on the EBITDA side certainly fortifies that. Strategic acquisitions remain our priority. But as we’ve said, that [ph] market remains challenging. We’re leaning into it. We’ve got a good pipeline that we’re prosecuting, but deals are harder to consummate. I’m sure you’ve heard, not just from us, but from others that a lot of deals are dying at the finish line, but we’re going to continue to lead into it. That said, we have the flexibility to deploy capital in other ways, it’s appropriate to create shareholder value. And I think you saw that last quarter, we bought back a lot of shares.
Matt Akers: Great. Thanks. I leave it there. Thank you. Operator Thank you. And our next question coming from the line of Robert Spingarn with Melius Research. Your line is open.
