We’ll have tough comps early in the year, which is why I indicated growth will be lower, particularly in Q1. But to your point on transactional, we continue to expect and are conservative around commercialization budgets in 2024. We do think there is some opportunity in the second half for things to improve modestly, but we’ve been pretty conservative on the rate of improvement in that market. On the IP side, from a transactional search and watch, we’ve been relatively consistent there. It’s been lower than in the past couple of years. And then, on the A&G side, which is the only place that we were a bit softer in the fourth quarter, we’ve been a bit conservative about the expectation there. So, that’s what’s leading to the anticipation that transaction will be down a couple of percent.
In terms of what we are doing about it and the things that we can control, the primary area to focus on is within Life Sciences. So, the investment that we are making in these therapy area focused offerings for our real-world evidence and the pharma-grade data will lead to opportunities to sell this in a subscription model. So, that’s a place where the headwinds we’ve seen in transactional the last couple of years we expect to see come back to us in the form of subscription growth. So, that’s a little bit more color on how we’re seeing 2024’s growth expectations by order type.
Mark Donohue: Next question, please.
Operator: The next question comes from Seth Weber of Wells Fargo. Please go ahead.
Seth Weber: Hey, guys, good morning. I was wondering if you could just touch on the pricing environment where it sits today and kind of what you’re contemplating for pricing as you ramp into 2026? Like, how much better do you think — or how much of a bigger contributor do you think pricing will be as you get further down the road with more products and better — more cross-selling, things like that? If you could just sort of talk through where pricing is today and how you see that trending over the next couple of years? Thank you.
Jonathan Gear: Sure, Seth. Yeah. I mean, I’ll go ahead and comment on that and see if JC has any additions. I mean, in general, pricing has been a net contributor for us across all three product lines with our subscription products. Now, certainly if you unpack that and look at specific products, where we have innovated in the past, where we are creating new updates to the products, that’s where we’re able to capture more price, and areas where we’ve done less so, and I will call out Derwent, for example, not able to capture price. There’s a direct correlation between our ability to innovate, drive that innovation to impact customer workflows and our ability to capture price. When I look forward to the plan this year, we’ve been fairly modest in terms of assuming any improvement on price capture for our plans for 2024.
That being said, we are amping up our rate of innovation. Henry Levy has announced that he’s going to be — every product is going to have an update this year in terms of his portfolio, and that will be able to capture price. But I think we’re going to take a wait and see in terms of when we actually see that coming through. JC, anything you want to add to that?
Jonathan Collins: Yeah. I think the indication we would expect 2024 to be pretty consistent, as Jonathan highlighted. In 2025 and 2026, as we launch these new offerings, we certainly think that this will be an area that will help contribute towards the growth acceleration as we move up a bit in those key product areas that we haven’t been able to price meaningfully in the last few years. Thanks for your question, Seth.
Mark Donohue: Thanks, Seth. Next question, please.
Operator: The next question comes from Ashish Sabadra of RBC Capital Markets. Please go ahead.
Ashish Sabadra: Thanks for taking my question. Maybe just following up on an earlier question around the revenue growth trajectory in 2024. The visibility historically has been pretty low. So, I was just wondering what gives the confidence in that back half acceleration in second half 2024? And in order — like, what could drive upside or downside risk there? Is it mostly macro, or are there certain client wins which are ramping up that can provide further confidence on that growth improvement? Thanks.
Jonathan Collins: Yeah. Thanks for the question, Ashish. This is Jonathan. On the expectations and the cadence for this year, it’s mostly driven by the comps from the prior year. So, we have not built in to your point because of visibility challenges for the last couple of years, a meaningful improvement in the markets in the second half of the year. But you’ll recall, for example, in our patent renewal business, we started to see the softening in the second quarter, late in the second quarter. So, we have tougher comps in the first part of the year. That’s also true with the trademark business within IP. So, that’s the reason we expect that growth will be slightly negative in the first quarter. We’ll return to growth in the second quarter and have better growth in the second half of the year.
It’s less to do with the run rate improving and more about the comps. And we have expected the transactional business to decline by a couple of percent, as I indicated. So, we think we’ve been a bit more conservative with our outlook on those sales that have been a bit more challenging to predict over the last couple of years. Thanks for the question.
Operator: Thank you. [Operator Instructions] Our next question comes from Shlomo Rosenbaum of Stifel. Please go ahead.
Shlomo Rosenbaum: Hi. Thank you very much. Some of the players in life sciences, like IQVIA and [Veeva] (ph) are talking about improved optimism amongst their client base, and they’re thinking that we should see a second half improvement. Is that square with what you guys are expecting in your numbers? Are you not seeing that? Are you not expecting that? And then just, Jonathan, I want to touch on one thing that at the Analyst Day the 2025 target was 6% growth, and you’re now pointing to ’26 at 4% to 6%. Can you just address, is that lowering the growth expectation even in the next year?
