John Martins: Thanks Tobey. This is John, again. I’ll start and have Bill add on if he has a more color to add. But, yes, there’s definitely more pressure on margins as we saw a demand drop right from where we were in COVID. But I think also there’s only — there’s a reasonable amount you could drop right so you can only drop a reasonable amount and still retain your profitability and of course there’ll always be some one-off competitors out there that will go very low. But what happens is they aren’t usually able to bring enough supply when they go very low. And so we think that there will still be pressure on margin as we enter in 2024. But I think we’ve done a relatively good job of managing that while being able to meet our needs fill our MSP clients, and still really hold our margin in nurse and allied fairly well compared to what I’m seeing out there in the market.
Bill Burns: Tobey, I would just add, we look advertised pay packages nationwide, market by market, and we benchmark ourselves. And I think we’re certainly competitive in every market we’re in. I would say that there are competitors out there who are looking to offer what I would say are excessive pay packages that are driving margins down. But it’s not, to John’s point, really sustainable. And we’re not jumping on that bandwagon at this point in time. It’s kind of like you look at it and say, well, what would it take if we had to go to that point? And it doesn’t seem like they’re getting a lot of shares. So I don’t know how prevalent it really is that they’re all doing this industrywide, because we can see it’s very, very few.
They’re increasing the pay packages in general, but there’s a handful that have gotten a little bit more on the aggressive side that makes it a little bit harder for us as well. So I think it’s a highly competitive market when you’re looking at the candidate side, as you know. So we’re doing what we can to manage our overall gross margin.
Tobey Sommer: Thanks. Last question for me, if I could. In your fourth quarter guidance, does that include any labor disruption revenue? And if so, is it kind of bigger or smaller than what would average be included in a quarter on average over time?
Bill Burns: It’s not really meaning — it’s not that material, Tobey, to be honest with you. I mean, we support them when we can, but it’s not going to be a material number to our quarter.
Operator: Our next question is from Kevin Steinke with Barrington Research.
Kevin Steinke: Good afternoon. We have five wins for Intellify that you mentioned. Should we think of those as competitive takeaways?
John Martins: Yes, 100% those are competitive takeaways. Those are not new space or new green space.
Kevin Steinke: Okay, great. So I guess the takeaway from that, and you mentioned your little ahead of schedules that the offering continues to resonate well in the marketplace.
John Martins: Oh yes, very well. As a matter of fact, Kevin, I was out at the ANCC Magnet Conference in Chicago a couple weeks ago, and it was interesting. The feedback we had from our current clients who were attending the conference, just coming up and giving testimonials about Intellify and how the technology has truly made a big impact within their organizations, it helped them with the reporting, helping them with the insights. The data analytics to be able to get the reporting on their phone in real time when they need it. And what they’re always most impressed about is how our dashboards are actually built right into our VMS that when they’re actually putting an order in, the dashboards right there, they actually put the order in for the dashboard.
And so great feedback. And the other feedback we got were from prospective clients. They were just coming up and looking at our technology and saying, wow, this is nowhere near what I have with my current vendor. And so we’re very encouraged by that. And it’s almost like we’re doubling down on getting the word out there. And that’s why we talk about investing so much in sales and marketing because we know our technology. People try to imitate it, but no one can duplicate what we’ve done with our proprietary algorithms with how we’ve coded this technology. It’s very different than a lot of what’s out there in the market. And as people try to come and compete with us, we already are starting to build the next generation of our technology. That’s one of the offerings we put out which we talked a little about in our prepared remarks was our data aggregation services.
As I mentioned earlier, it is truly the first transparent bill rate technology we believe in the industry.
Dan White : Kevin, this is Dan. I think I’d like to add a little bit too just as a reminder. I know we’ve talked about it on previous calls, but there was a prolonged period of time when health systems were not going out to market for their VMS or their MSB programs. And so we’ve seen tons of activity and I don’t see that slowing anytime soon. Evidence by the remarks I made about our sales pipeline. Another way for you to think about this is our existing customers are also buying more. And so just quarter-over-quarter, we had a 40% increase in service add-ons to those same customers and a lot of that is enabled by this technology. So adding locums, as John pointed out earlier, or adding interim leadership or RPO or these other things happens so much faster and delights the customers in a way because they can see the impact so much faster with all the transparency and then they start telling their friends.
So I think this is, we have an opportunity with this abundant amount of activity. In my opinion, by the time this is done, we will win more than we lose.
