William Feehery: We did see a significant pickup in our bookings in the fourth quarter. So when Annie talked about a recovery and the reg, that’s what we’re — in our reg business, we were looking at that. I like to think some of that’s due to the changes we’ve made in our management and our sales force. And so I’m not sure I could describe it exactly to confusion, CROs or something like that. So we are seeing the business recover, it’s going to take a couple quarters to kind of rebuild the backlog to back where it was. So hence the conservative guidance for the year for that.
Operator: Our next question comes line of Gaurav Goparaju from Berenberg.
Unidentified Analyst: This is Matt on for Gaurav. First question here. Are your customers with larger ACVs typically large pharma, or are some of these customers biotechs as well?
William Feehery: It’s a mix. I would say large pharma is obviously the typical candidate, but we also have some biotechs and some foundations in the top 10 as well.
Unidentified Analyst: And then for my follow-up, just wondering in terms of revenue drivers, are you seeing more contribution from new customers joining the platform or more from existing customers increasing their consumption?
Andrew Schemick: We’re seeing, I guess, 17% revenue growth this year, we ended up with kind of a similar mix to previous years in terms of the revenue contribution from new logos to customers. So we’re seeing, I think, a balanced growth amongst the new and used. And as Bill mentioned, it was actually TTM number, the tier one customers grew about 15% and then all other customers grew about 15% for the year.
Operator: Our next question will come from the line of Michael Ryskin from Bank of America.
Unidentified Analyst: This is Wolf on for Mike. So I wanted to start off with M&A, specifically on the offset. Can you give us any color on the size, growth, margin profile or at least the synergies and cross selling opportunities you expect to realize there? And then more generally, you guys have been I guess fairly acquisitive at company historically. Does your outlook for the year embed any M&A contribution beyond the deals you’ve already closed or would that be a source of upside?
William Feehery: So the answer to the second one is quick, which is the outlook does not include any M&A that we’ve not already completed. And the answer to the first question is kind of similar to what we’ve been talking about and what we’ve been executing for a while now. So we look at acquisitions primarily in two categories. One are small bolt-on acquisitions where we can acquire talent. These tend to be quite small but much easier than hiring people one at a time, for example. And then to the extent that we do more significant acquisitions, we’re primarily looking at software products that would expand our position in biosimulation. We kind of — we look at the strategy of the company as being able to provide data, modeling and analytics for the really critical decisions in drug development.
And when you look at it through that lens, there’s some interesting places that over the future we can potentially go to. There’s a big world out there. But as I’ve said many times in the past, we’re in an exciting space. There’s a lot of really good ideas. We can’t do them all. We can’t vet them all internally. But at the same time, we’re perfectly happy if we find no acquisitions. It really depends on something — finding something that’s strategic, that fits really well with the company and that we can justify the price on an accretive basis with our shareholders.
Unidentified Analyst: And then on an unrelated follow-up. Are you seeing any change in customer behavior from your large pharma cohort due to the Inflation Reduction Act, or are you taking any steps internally to position Certara for any changes in legislation over the medium to long term?
