John Gallagher: Right. Yes. So I mean, look, as far as conversion, then we’re pleased with the conversion. It’s on our expectations. So backlog, I’d say there’s not an unusual amount of backlog conversion, but it is playing out as we thought it would with meaning we have some bookings left over from last year. We’re converting those. And the revenue plan played out as we anticipated. As you look forward on bookings and – we are excited about what we’re seeing. And as Bill mentioned in the prepared remarks, we’re excited about the biotech funding environment and the fact that some of our customers are or potential customers are getting funded, but it’s really important to note that we haven’t reached the inflection point. We don’t see that in the bookings in Q1. We don’t see it in the bookings to date in Q2 and so if that’s going to play out for us, it’s definitely going to be more in the back half of the year, and we haven’t seen it yet.
Jeffrey Garro: Fair enough. I will stop there and jump back in queue.
Operator: Thank you. [Operator Instructions] Our next question comes from Luke Sergott at Barclays.
Luke Sergott: Great. Thanks. I just wanted to follow-up on that M&A and kind of get a little bit more specific there. And what the contribution was to each segment in the quarter? And then as David talked about, what’s embedded in guidance, any changes to those to what you’re expecting for the year?
John Gallagher: No. The guidance, no changes there. We’re confident in the range that we have and Q1 played out in-line with our expectations. The M&A contribution – when you look at bookings, it’s less than 2% of bookings was related to M&A. So it’s really not a material amount. And then as I mentioned earlier, when you look at our 7% reported revenue growth then there was a contribution of a few hundred basis points. But we haven’t split that out on a software services basis.
Luke Sergott: Okay. Thanks. And then I guess as we’re thinking about the guidance, I understand the first half, second half catch up. But on the services piece, we’ve seen the regulatory business be softer for quite a while. And then you’re talking about – you had a little softer bookings here in the first quarter. I’m just trying to figure out when that what kind of visibility you have on the services side? Is that to bake in that kind of second half ramp recovery?
John Gallagher: Well, I mean, a key aspect of that is we put together the guidance with the notion of stability, which is what we saw play out on the quarter, and it was what we saw in the bookings results for the second half of last year. To get to the higher end of the range, then we would need to see that inflection point due to any biotech funding that might be out there. And by the way, we are targeting those companies that are gaining funding in those capital markets, we are targeting them from a commercial basis. But again, any activities are really going to be in the second half of the year. Services, so the regulatory business in the meanwhile as well as our biosim services, especially in the Tier 2 and Tier 3 customer categories continue to be impacted by the same dynamics that we saw last year.
Do we see stability? We do. We’re happy about that. We don’t see continued decline, but we also don’t see acceleration and haven’t hit that inflection point yet.
Luke Sergott: Okay, that’s helpful. Thank you.
Operator: Thank you. [Operator Instructions] Our next question comes from Michael Ryskin at BofA.
Michael Ryskin: Great. Thanks for taking the question. I want to go back to the bookings in the quarter. I know you called out a couple of times the strong or the elevated comp in services bookings I mean I think it’s elevated on the dollars basis, but on a percent basis, it was only up 4% last year. So just trying to parse out a little bit on – is the seasonality on that expect to be a little bit different? Or put another way, if I look at services bookings, last year, it’s $82 million in 1Q and then $50 million, $57 million, $75 million the rest of the year. So sort of a big step down and then ramping in through the rest of the year. Are you expecting a little bit of a more spread out seasonality there? I know it’s tough to talk about bookings ahead of time, but just trying to reconcile that trailing 12-month bookings growth and the 1.1 book-to-bill with, like you said, some expectations with pretty steady revenue growth this year. Thanks.
John Gallagher: Yes, Mike. So – what we typically see is we do typically see a Q2 that’s lower than Q1. So to your point, that seasonality and that typical seasonality there’s not – especially given that the end market environment has really not changed, then there’s no reason to think that, that typical seasonality wouldn’t continue to play out the way that it has. So that’s probably the best indication that we can give. Sorry, go ahead.
Michael Ryskin: No, I was going to say, just to clarify, yes, there’s usually a step down, but last year, there was a very sharp step down from $82 million to $50 million. I think this year, is it safe to say that you expect less of a step down and then last year, 1Q was just elevated in dollar terms. I’m just trying to think about services…
John Gallagher: Yes. The answer to that is yes. The step down last year was unusual. And then from that point forward, we saw some recovery and stability. And so even though we do anticipate some level of seasonality at what I would say happened last year, versus what you saw in other years was unusually large of a step-down. And sitting here in May, we don’t anticipate that we’d see that level because we once we step down there, then we started to see recovery into Q3, we saw some acceleration into Q4 and now Q1 of 2024 has played out in-line with our expectations.
Michael Ryskin: Okay. And then just sort of the…
John Gallagher: The other thing to add to that, I guess, is really, if you look at the years before 2023, if you look at 2021 or 2022, then that’s what we would point to as more sort of typical seasonality.
Michael Ryskin: Okay. Alright. Fair enough. And then, I guess, sort of the second part of that question would be on the book-to-bill, using the trailing 12 months, I think it’s 1.1 this quarter for most of the last year, it was in sort of like the 1.15. And then prior years, it was more of 1.18, 1.2. is a little bit lower than it’s been in prior years. Is that just sort of like catching up to the softer bookings you saw last year? I mean is it fair to say that you expect that to reaccelerate back into the 1. 2 range as we exit the year?
